President Donald Trump’s latest financial disclosure form reports liabilities to banks and financial services firms of between $356.15 million and $480.35 million, including up to $175 million to Deutsche Bank U.S. and $150 million to Ladder Capital, a listed real estate investment trust.
Robert Mueller, the special counsel heading the federal inquiry probing alleged Russian interference in the 2016 U.S. presidential race, subpoenaed records regarding Trump’s loans in December 2017, as well information on former Trump campaign chairman Paul Manafort, according to the New York Times.
Lenders of all kinds, including big banks or listed specialized finance companies like Ladder LADR, +0.33% have provided lots of money to Trump over the years in the forms of short-, medium- and long-term loans and at competitive rates, whether fixed or variable.
Trump’s outstanding loans were granted at rates between 2 points over and under the matching Treasury-yield benchmark at inception. That’s despite the well-documented record of bankruptcy filings that dot Trump’s history of casino investment.
Trump’s properties are still vulnerable on the Deutsche variable-rate loans if no interest caps were included in the loan terms. Trump may have already bought swap contracts from another bank that would exchange his variable-rate interest payment commitment for a fixed-rate one for a price.
A spokesman for Deutsche Bank declined to comment on its business relationship with Trump, citing client confidentiality requirements.
Trump owes between $5 million and $25 million for the loan due soonest, in 2019, from Bryn Mawr Bank Corp’s BMTC, +0.22% Royal Bank America for Trump National at Seven Springs in Westchester New York. That loan carries a 4% interest rate.
Ladder Capital — a listed real estate investment trust, or REIT, that lends for commercial mortgages, mezzanine financing and preferred and direct equity to partners — originated two mortgages and one loan with a high value of $125 million, per the disclosure, for Trump-related properties. Ladder Capital also refinanced another mortgage in 2016 that was originated by UBS Real Estate Investments Inc. in 2006 with a high value of $25 million, per the disclosure. Ladder’s CEO is Brian Harris, a former UBS commercial real estate executive, and his firm is filled with real estate veterans from big banking organizations including UBS UBS, -0.74% , Bank of America BAC, -0.51% and Credit Suisse CS, -0.65% .
MarketWatch reported last June that Ladder Capital no longer holds the loans, according to a person familiar with the transactions. That person also said all of the credits are nonrecourse — meaning the lender or investors in the collateralized mortgage debt securities can pursue the collateral, in this case the properties, but not the borrower in case of default — and have been securitized. The CMBS that includes the Trump Tower note was rated triple-A.
A spokesman for Ladder Capital did not immediately reply to a request for comment.
Three smaller loans, one from Bank of New York Mellon BK, +0.30% for between $1 million and $5 million and two from Bank of America’s BAC, -0.51% Merrill Lynch Credit Corp BAC, -0.51% for up to $350,000 were paid off during 2017.