Filed under: Deals, Housing, Financial Crisis
The real estate market is as bad as it gets, so lenders are getting cold feet about big projects. Even Donald Trump, who can usually work magic filling his buildings with tenants, is running into problems. (It should be noted he has never been good at the casino business and spends too much time doing Television junk like The Apprentice).
Trump might not have much of an argument. He wants an extension to the loan for his residential tower in Chicago, which means a portion of its has lapsed. Why the banks involved, including Germany’s largest bank, Deutsche Bank (NYSE: DB), would do that’s unclear.
According to The Wall Street Journal, “The suit demands — among other things — that an extension provision in the original loan agreement be triggered because of the unprecedented financial crisis in the credit markets now prevailing, in part due to acts Deutsche Bank itself participated in.” In other words, the financial crisis nearly rises to the level of being an “act of God.” Not quite, but getting close.
Trump’s real problem is not the banks. Since everyone in the U.S. is poor, no one wants to purchase his high-priced Chicago condominiums. A lawsuit won’t solve that.
Douglas A. McIntyre is an editor at 24/7 Wall St.
Trump sues lenders originally appeared on BloggingStocks on Sat, 08 Nov 2008 12:40:00 EST. Please see our terms for use of feeds.
Entries (RSS)