House Democrats aren’t buying Deutsche Bank’s argument that they have no right to information about Donald Trump multi-million-dollar loans from the institution. And they’ve fired off a letter saying so.
Democrats on the House Financial Services Committee, led by Rep. Maxine Waters of California, and others last month demanded information about the estimated $340 million in loans since 2012 made to Trump by the bank, which is paying out huge sums to settle accusations of helping launder billions of dollars in Russian money.
The Democrats asked if any of the Trump loans were linked to the money-laundering operations, or if any of Trump’s loans were guaranteed by Russians. Deutsche Bank mysteriously continued to loan millions to Trump even though he defaulted on one of his loans to the bank. Trump was forced to look overseas for money as U.S. banks became increasingly reluctant to loan to the litigious real estate developer in the wake of bankruptcies and loan defaults.
Deutsche Bank, which has loaned billions to Trump since 1996, earlier this year paid a total of $630 million to the U.K and U.S. to settle some investigations into fraudulent mirror stock trades that Russian account-holders used as a suspected cover to launder some $10 billion.
Not only Trump, but his daughter Ivanka, her husband, Jared Kushner, and Kushner’s mother are clients of the bank.
The bank responded to the Democrats’ letter that it could not release information about clients because of privacy laws.
This time, representatives of the Financial Services Committee, as well as members of the Subcommittee on Monetary Policy and Trade, the Subcommittee on Oversight and Investigations, and the Subcommittee on Terrorism and Illicit Finances argued that U.S. privacy laws do not apply in this case.
Such laws aren’t applicable when information is called for by members of Congress, stated the letter. In addition, disclosure of a client’s information is permitted if it “may yield information indicating potential criminal or fraudulent conduct” or may “prevent actual or potential fraud [or] unauthorized transactions.”
Finally, noted the letter, Trump could simply direct the bank to share the information.
“Given President Trump’s repeated assertions that he does not have ties to Russia, such disclosure would ostensibly be in his interest,” the letter said.
Deutsche Bank lawyers told The Guardian that they would respond to the latest letter “in due course.”
The Democrats also last month wrote a letter to Treasury Secretary Steven Mnuchin requesting that the Treasury Department’s Financial Crimes Enforcement Network provide records of Trump’s financial ties to Russia, as well as those of his family members and associates. Mnuchin has so far not responded.
New York’s Department of Financial Services fined Deutsche Bank $425 million and mandated an independent monitor track bank programs to guard against money-laundering schemes. An investigation by the U.S, Department of Justice is ongoing.
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