A growing number of businesses suddenly want very little to do with Donald Trump after he incited a mob to attack the Capitol. That could make it more difficult for the Trump Organization to do business after he leaves office.
“I think it’s a huge problem for him,” said Michael D’Antonio, a CNN Contributor and a Trump biographer. “He created toxicity for an important part of his market. I don’t know if some will ever come back. Most brands try to avoid controversy. I feel like he’s forced the hands of the companies that decided to disengage.”
Since last week’s siege of the US Capitol by Trump supporters, a growing list of banks and businesses have cut ties with him, citing violations of their rules against promoting violence — or concerns about associating their brands with Trump.
Twitter and Facebook banned Trump indefinitely, taking away his biggest megaphones. Stripe is no longer processing credit card payments for his campaign, Shopify stopped operating online stores for the Trump Organization and the campaign and the PGA announced it is pulling a major golf tournament from one of his properties.
It’s unclear which, if any, banks will want to loan money to the Trump Organization. Deutsche Bank (DB) has decided to refrain from future business with the president and his company, a person familiar with the bank’s thinking told CNN Business. The news was first reported by the New York Times.
The Trump Organization owes Deutsche Bank approximately $340 million in the coming years, the person familiar with the bank’s thinking said. A spokesperson for Deutsche Bank declined to comment, citing a prohibition on discussing potential client relationships.
New York state criminal investigators looking into Trump’s business practices have subpoenaed the bank about its lending relationship with the Trump Organization. Late last month the two private bankers at Deutsche Bank who worked most closely with Trump resigned their positions.
On Monday, Signature Bank said it had started closing Trump’s personal accounts and called for Trump to resign. The US bank also said it “will not do business in the future with any members of Congress who voted to disregard the Electoral College.”
Properties at risk
Some of the Trump properties could be particularly hard hit by last week’s events, top among them the Trump hotel in the former post office building in Washington, DC. During the last four years businesses and foreign governments that wanted to curry favor with the Trump administration booked rooms or other events at the hotel.
“It could be that the opposite will be true now,” said D’Antonio. “Anyone going to DC on business would be crazy to stay at the Trump hotel unless all their business is with the Republican National Committee.”
Trump’s contract to operate the hotel in the government-owned property could even come under attack. Critics have argued it was improper for him to be operating it during his administration. Last week’s events could increase the calls on the government to end its contract with the Trump Organization.
“As we view it, for four years he violated the terms of that agreement by having a federal office holder benefit from that contract. There should be consequences of that,” said Noah Bookbinder, executive director for Citizens for Responsibility and Ethics in Washington (CREW), a watchdog group that has been a frequent critic of Trump and his businesses.
Bookbinder said that Trump was already likely to lose some business at his hotels, including his Washington property, when he is no longer president. But the actions of last week only accelerated companies deciding to no longer do business with Trump, Bookbinder said.
“I think unquestionably he would have held on to more of it without last week’s events,” he said. “If he had emerged from this as the power center for the Republican party and the likely candidate in 2024, there would have been a lot of incentive for the RNC and others to keep holding events at his hotels.”
Bookbinder said the violence at the Capitol could also give businesses that have contracts with the Trump Organization a way to get out of those commitments.
“It’s standard for a lot of contracts to have outs if there is illegal or immoral conduct,” he said. “My guess is that a lot of companies will be eager to take advantage of those kinds of legal openings.”
Other properties with the Trump name on them could be at risk going forward. Many of those agreements are marketing deals, in which he licenses the use of his name – and brings in big bucks for doing so.
“Those branding deals were worth millions to him. Not having them would be significant,” D’Antonio said.
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