No conflict of interest–pun intended–here (boldface mine):
President Trump stands to save millions of dollars annually in interest on outstanding loans on his hotels and resorts if the Federal Reserve lowers rates as he has been demanding, according to public filings and financial experts.
In the five years before he became president, Trump borrowed more than $360 million via four loans from Deutsche Bank for his hotels in Washington, D.C., and Chicago, as well his 643-room Doral golf resort in South Florida.
The payments on all four properties vary with interest rate changes, according to Trump’s official financial disclosures. That means he has already benefited from falling interest rates that were spurred in part by a cut the Federal Reserve announced in July, the first in more than a decade — and his payments could drop by millions of dollars more annually if the central bank grants Trump’s wish and further lowers short-term rates, experts said.
“It will reduce his borrowing costs quite a bit if he gets what he wants,” said Phillip Braun, a finance professor at Northwestern University’s Kellogg School of Management. Braun said Trump’s savings could be even greater if Deutsche Bank permits his company to pay down the loans more quickly without a penalty, which banks sometimes allow….
The central bank’s benchmark rate is one factor in determining interest owed on variable-rate loans, the kind the president has on his properties. Mortgage rates have also been driven down because of the trade war with China and anxieties about global growth.
Experts said it’s difficult to ascertain exactly how much Trump would save if he gets the reduction in short-term interest rates that he has urged, from 2.25 percent to 1.25 percent — a move typically reserved for economic emergencies.
But the president would be substantially impacted by a rate cut, they agreed…
An analysis by Bloomberg News found that for every quarter-point reduction, Trump could save $850,000 in annual interest rate payments, which would mean more than $3 million in annual savings if the Fed dropped rates a full percentage point as Trump has demanded.
I’m guessing Duetsche wants to run as far away as possible from Trump, so they would probably be willing to let him pay off the loans early.
Thankfully, the House Democrats have shown great willingness to investigate Il Trumpe’s conflicts of interest… Gulp.
L’État, c’est moi…