Why is Donald Trump dismissing mounting pressure to disclose his tax returns or allow an independent valuation of his assets?
The New York Times using a property information firm to search publicly available data found he is tied up in three passive partnerships that owe $2billion
The search reveals more than 30 US properties connected Trump’s real estate empire have at least $650million in debt
This is contrary to the claims of the billionaire tycoon on the campaign trail that he is a ‘very, very rich’ and successful real estate investor, worth over $10billion
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It would seem that the newly minted politician who boasts of debt, is really a debt king, afterall. Donald J Trump on CBS “This Morning” in June said, “I’m the king of debt. I’m great with debt”.
“Nobody knows debt better than me. I’ve made a fortune by using debt. And if things don’t work out, I renegotiate the debt. That’s a smart thing, not a stupid thing.”
A new York Times expose, Saturday, reveals that companies belonging to Donald Trump have at least $650million in debt, more than twice the amount shown in public filings made by his presidential campaign.
Trump Plaza. Trump apparently, is also tied up in three passive partnerships that owe $2billion
In addition to the $650million liabilities, ‘a substantial portion of his wealth is tied up in three passive partnerships that owe an additional $2billion to a string of lenders’, the Times said this last debt could significantly affect the size of Trump’s wealth.
Significantly, while Trump has railed against China during his bid for the White House, the highly leveraged businessman owns 30% of an office building on Sixth Ave. in Manhattan that counts Bank of China as one four lenders securing a $950 million loan, the Times reported.
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Also listed among the four lenders is the wall street bank, Goldman Sachs, the financial firm that Trump says his Democratic rival Hillary Clinton is beholden to because it paid her $675,000 in speaking fees. In a 104-page federal financial disclosure form submitted earlier in the campaign, Trump had said his businesses owed at least $315 million to a relatively small group of lenders and listed ties to more than 500 limited liability companies. Though he answered the questions, the form appears to have been designed for candidates with simpler finances than his, and did not require disclosure of portions of his business activities.
A New York Times investigation into more than 30 US properties connected Donald Trump revealed his companies owe at least $650million up from the $315million he claimed in his financial disclosure form
The billionaire tycoon campaigns on what he says is his spectacularly successful real estate record. Whereas he claims to be worth $10billion and citing his business acumen as his major qualification for the presidency, he indicated in the financial disclosure form he filed in connection with this campaign that he was worth at least $1.5 billion. He also publicly stated that the figure is actually greater than $10 billion. Recent estimates by Forbes and Fortune magazines and Bloomberg have put his worth at less than $5 billion.
Trump’s campaign filings show his businesses debts are owned by the financial institutions he has lampooned including Bank of China and Goldman Sachs
However, he has dismissed mounting pressure even from within his own party to disclose his tax returns or allow an independent valuation of his assets.
Trump’s campaign filings show his businesses owed at least $315million, the Times noted, saying they appear to be accurate and that Trump was not required to disclose all of his business activities.
Although the paper does not accuse him of any wrongdoing, the investigation ‘underscored how much of Mr Trump’s business remains shrouded in mystery’.
The probe ‘also found that Mr Trump’s fortunes depend deeply on a wide array of financial backers, including one he has cited in attacks during his campaign’, the Times said.
His lenders include one of the largest banks in China – which the Republican candidate accuses of being a US economic foe – and the investment bank Goldman Sachs, which he says influences his Democratic White House rival Hillary Clinton.As president, the Times said, Trump would be able to make decisions that would have a major influence on his business empire and net worth.
The Times hired property search firm RedVision Systems to delve into Trump’s opaque maze of real estate holdings and help sort out his stakes in commercial and residential properties, including hotels, golf courses, office buildings and a vineyard.
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