After the US election, Deutsche Bank (DB) is looking for ways to end its relationship with US President Donald Trump as it no longer likes the negative publicity that comes from such partnerships, according to three senior bank executives with knowledge of the matter.
Deutsche Bank has given loans amounting to approximately $340 million to the Trump Organization, the president’s umbrella company currently owned and operated by his two sons, reported Reuters. Two of the bank’s executives have reported that there are three up-to-date loans with Trump’s real estate behind them. The loans are to expire in two years and bear the personal guarantee of the President, the executives said.
A Deutsche Bank management committee, which assesses reputational concerns and other risks to the bank in America at its meetings in recent months reportedly, explored ways in which the bank could get rid of this last connection. The bank has lent more than $2 billion to Trump over the years, one of the officials said.
One of the bank’s executives disclosed that a proposal that was placed on the table at a meeting was to sell the loans on the secondary market. But the concept was not adopted by another executive, particularly because it was not clear who would want to purchase the loans and the issues they bring with them.
In separate news, U.S. health insurance company, Humana Inc. (HUM) posted improved net profit in the third quarter and higher sales but expects losses in the fourth quarter.
Compared with earnings of $5.14 per share a year earlier, the firm reported earnings of $10.05 per share in the reported quarter.
After adjustments, Humana’s earnings were $3.08 per share whereas analysts had expected earnings per share to be $2.81.
In the third quarter, sales amounted to $20.08 billion, higher than $16.24 billion of the previous year, while analysts were expecting $18.62 billion.