Donald Trump and his firms ‘owe $1BILLION to 150 companies’ sparking conflict of interest fears when he becomes president
The President-elect had previously said his companies' debt was $315 million
DONALD Trump and his various companies owe more than $1billion (£809million), it has been claimed.
Debt "linked" to the President-elect, his businesses and properties is owed to more than 150 financial institutions, .
Their research showed that various loans taken out by The Donald were repackaged and sold as bonds over the past five years, with some of them personally guaranteed by himself, sparking fears of a conflict of interest when he moves into the White House.
Trump had previously estimated his companies' debt to to be $315million (£255million).
The process of chopping up the debt and repackaging it is known as securitisation.
The revelations have sparked concerns that now a variety of financial institutions could be in potentially powerful positions in connection to the incoming President.
If his businesses were to default on these debts some of these companies would have the ability to foreclose on some of Trump's properties or demand the tens of millions of dollars owed.
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Trevor Potter, who served as a general counsel to the Presidential campaigns of Republicans George H.W. Bush and John McCain told the Journal: “The problem with any of this debt is if something goes wrong, and if there is a situation where the President is suddenly personally beholden or vulnerable to threats from the lenders."
For example the bank Wells Fargo runs at least five funds that own portions of The Donald's businesses.
It is also a trustee for other pools of loans which include $282million (£228million) owed by Trump.
Additionally Wells Fargo is currently under scrutiny from federal regulators over its fraudulent sales practices, when Trump takes office he will be able to appoint the heads of many of the regulators that will be policing the bank.
It is common for big property investors to have debts spread around Wall Street.
But the wide-ranging nature of The Donald's debts complicates the potential conflicts he could face between his role as President and his personal financial interest—especially if he opts not to sell his real-estate holdings, some experts say.
The Journal analysed Morningstar data, which it said showed that six funds at Vanguard own about $225.7million (£182million) worth of Trump debt, while seven funds at T Rowe Price owned $98.2million (£75million), five funds at JPMorgan Chase owned $51million (£41million) and four funds at PIMCO owned $49.5million (£40million).
Other funds reported to hold debt connected to Mr Trump’s companies included Prudential, Fidelity Investments, Wells Fargo and BlackRock, the Journal said.
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