I just posted an article on the major problems that Trump is about to face from his longtime personal and company accounting firm, Mazars, who just dumped him as a client. That article dealt with Trump’s increasingly perilous legal difficulty in the NY AG and Manhattan Da office investigations against him. But it turns out that Trump has a much more pressing and desperate problem in the aftermath of the Mazars letter.
Because everybody automatically jumps to the thought of the criminal consequences of the Mazars letter. But that ignores a much deeper, and more personally damaging fallout for Trump. The business fallout. As it stands right now, in the next 12-24 months, Trump has, depending on who you listen to, anywhere from $400 million to $1.2 billion of serviceable debt coming due. Which he can’t pay, and needs to find a way to refinance.
But there’s another problem with that. Because when you sign a contract with someone for cash, you’re basically swearing that you’re telling the truth. And any contract worth the paper it’s printed on gives either party an opt-out clause if either party has been untruthful. That’s contract 101.
So, forget about the millions and possibly billions Trump has coming due in the next 2 years. Because the field has just opened. Mazars letter has just laid the groundwork for every single bank or institution who has lent Trump money in the last decade to do an audit. And if they find that Trump misled him with the financial documents that Mazar’s provided, then they are entitled to call in their chips immediately!
This is a potential financial Waterloo for Trump. He can hang negotiations on his existing debts out to dry for years in negotiations to refinance them. But if these other banks, whose notes aren’t yet due, can prove Trump misled them in his initial filings, then they can call iN their markers immediately. And Trump doesn’t have the money.
Trump has played fast and loose because he honestly thought that nobody would ever actually defy him. But his fall from grace, not only politically, but in business as well, has opened the floodgates. Trump has abused these people just as he has abused everybody else, and I think some of them may be slavering to get some payback.