When the business empire of former President Donald Trump was teetering on the edge of a financial crisis, Axos Bank emerged as a crucial financial ally, The Washington Post reports.
The bank, under the leadership of its CEO Gregory Garrabrants, extended significant loans to Trump’s businesses at a time when other financial institutions distanced themselves in the aftermath of the Capitol attack on January 6, 2021.
Trump’s primary lender and several other banks holding his deposits severed their relationships around the time of the Capitol siege. This left Trump grappling with loans amounting to hundreds of millions due for repayment.
The situation worsened when his two-decade-long accounting firm parted ways with him in February 2022. Amid this financial turmoil, Axos Bank, a digital-only banking firm headquartered in suburban San Diego, stepped in to support Trump, The Washington Post discloses.
The Role Of Axos Bank
A day after Trump’s accounting firm issued a public caution, Garrabrants sanctioned a $100 million loan for Trump Tower — the iconic 58-story Manhattan building that served as Trump’s residence and operational base.
A few months later, Garrabrants greenlit a second transaction, providing $125 million for Trump’s Doral resort, a vast golf course complex in Miami-Dade County.
Axos Bank also financed a portion of a loan that enabled a group of investors to purchase Trump’s D.C. hotel for $375 million.
Consequences Of The Loans
The financial aid from Axos Bank played a pivotal role in steadying Trump’s finances post-presidency, thereby facilitating his campaign for the 2024 GOP presidential nomination. These loans have caught the eye of New York Attorney General Letitia James, who is spearheading a broader lawsuit. The suit alleges that Trump “falsified” records to overstate the worth of his properties in financial statements, a move aimed at obtaining prior loans at more favorable interest rates.
Trump has refuted the allegations, labeling the lawsuit as a politically motivated attack. He has recently minimized the significance of loans to his financial situation. “I don’t need banks,” Trump stated in April, without referring to the Axos loans. “I have a lot of cash. I built a great business with my family.”
Trump’s Political Tactics
As Trump grapples with increasing legal challenges, he stands accused of attempting to sway lawmakers to undermine the ongoing investigations against him. Former White House Communications Director Anthony Scaramucci perceived this as a veiled warning to lawmakers, implying that the former president was cautioning them of potential consequences if they failed to back him.
Produced in association with Benzinga