Trump's company could save millions if interest rates fall as he demands

[Eugene]

Source: Washington Post

Trump’s company could save millions if interest rates fall as he demands

By Jonathan O'Connell, David A. Fahrenthold and Heather Long August 24 at 12:37 PM

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.

-snip-

Read more: https://www.washingtonpost.com/politics/trumps-company-could-save-millions-if-interest-rates-fall-as-he-demands/2019/08/24/5e5df684-c5a9-11e9-b5e4-54aa56d5b7ce_story.html

[Eliot Rosewater]

1. Too bad this isnt a Democrat illegally making money while in power, 45 million MAGA

would arm themselves and hunt that Democrat down and END them by dinner.

If they did this.

No, I am not suggesting someone should do that to rump , I am merely pointing out the fact that cons have no rules, AT ALL and libs have to follow ALL the rules.

[TheFarseer]

2. Why isn't this widely discussed?

It’s insane that hardly anyone mentions this. I bet lots of Fox News watching retirees with money market accounts are cheering on lower interest rates when it would take money directly out of their pockets.

[Igel]

4. I figure it's widely known.

If you borrow and interest rates fall, you save money.

That's Trump. That's me. That's the federal government. That's the state governments.

If you loan and interest rates fall, you don't make as much money.

That's pension funds. That's investors, rich and not so rich. That's people who buy T-bills.

[TheFarseer]

6. Obviously it's widely known

Higher interest rates are bad for borrowers and good for savers. I mean that Trump has a massive amount of loans AND they are on adjustable rates.

[Yo_Mama_Been_Loggin]

3. But of course

[SharonAnn]

5. Of course. He's the self-described "King of Debt" Wants lower interest rates.

That will mean more money in his pocket. It's all about the Benjamins.