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.

 

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11 COMMENTS

  1. It will be interesting to see how this plays out, especially with major news outlets. Not that many corporate honchos/board members necessarily let public opinion determine what they do (though to some it does matter if it affects their bottom line enough) but stockholders might it this gets played get restless and demand action. What I’m driving at is that I suspect as word of Mazar’s pronouncement AND the fact they did it so publicly sinks in a lot of those in business with the Trump Org. will be seriously looking at getting what they can as fast as they can. It’s like a run on a bank but closer to pre-Depression and no FDIC than nowdays. Some who are owed money or have assets intertwined with Trump will, if they get their money out quickly will get it all but that won’t last long if there’s a long line of folks/companies in line clamoring for THEIR money. There’s only so much cash in the vault and when it’s gone assets that might be able to be sold off are all that’s left but that takes time and by then panic sets in.

    I think you are on to something “Bigly” huge here and I suspect as this sinks in on Trump he might finally melt down. The legal costs of trying to fight off a “run” on the Trump Organization “bank” won’t be in the tens of millions but rather the hundreds of millions. Not that he ever intended to use all that money he’s raised to help OTHER candidates would actually be spent helping others get elected (a select few would get a little – just enough so he could try and claim legitimacy to donors to keep sending in their cash) but he’s been counting on all that grift to cover those debts you mentioned and to maintain his lifestyle and image. He’s already panicked at having to spend real money (by real I mean lots, even for someone that has a lot of money) on decent lawyers to fend off criminal and civil matters he faces, but this? This spells true disaster. Sharks have already picked up the scent of blood in the business water and now his former accounting firm has jammed a canula into his jugular and hooked a tube to it so it can run over the side into the ocean.

    I’m not a lawyer but I know enough that as you say, fraud vitiates any contract and anyone Trump owes money to will want their money back while it’s still relatively easy to get. However, even those who are relatively square with Trump or his company will be worried about his company staying solvent and want out. Remember how many of us chuckled when some of his properties not only up and said “We’re done doing business with you. Sue us if you don’t like it” and made a show out of removing those big gold Trump letters from buildings? I think we’re going to be seeing a lot more of that. People he’s been doing business with just telling him “I’m/we’re out. Sue if you don’t like it” and him not being able to do a damned thing because he won’t have the resources to fight anywhere near all those battles.

    I think, or at least hope that we are now at the point where engineers have gotten approval to start setting up one of those old huge structures for an implosion. It takes a while to set the explosives and wire them to go off at the proper time but it brings the whole damned thing down on itself and it’s cool to watch. Of course, this won’t be that neat. Too many of the explosives will go off early because as I said some businesses/institutions will have the resources to grab their money back right away and won’t wait. That means instead of the building collapsing on itself with no damage to adjacent structures some of the surrounding stuff will be damaged. That part will suck. Still, I think there is now real reason to hope we are about to see the end of the Trump Organization, and after that the actual downfall of Trump and his family. It can’t come soon enough, but I think it’s now truly in motion and with a mass and momentum that it can’t be stopped.

    Thanks for pointing this out.
    (p.s. – what do you think the mood is among his advisors down there in FL? How would YOU like to be one of those drawing the short straws and having to keep forcing him to listen to reality?)

    • Here is one thing to consider with regard to people doing business with former guy: does he have many legitimate customers/investors any more? Trump’s piss-poor business practices and constant lawsuits must have had an effect on people who do business in the normal ways people do business: following contract law, etc. I thought the reason so many unsavory types (i.e. russians) bought condos from the guy was because that was all the business he had left–the only way he was making money was by laundering it. Add to this the fact he was on display for four years proving just how inept he is at everything and I don’t really see investors of the normal sort beating a path to his door.

      This Mazar thing won’t help matters sure but things were very, very, dicey before they dumped him.

      • A lot of his businesses lost money during his Presidency but while some broke away from him I’m pretty sure the majority stuck to their contracts for fear of legal fees if he sued. Now they’ve got tangible protection if Trump want to take them to court. How can any court accept his financial statements when the firm that prepared them is officially on record saying they can’t guarantee their accuracy? Mazars was polite about it but basically said those statements aren’t worth the paper they are written on. The more I think about it the more I believe Trump and his family business are finally in deep shit that’s the consistency of quicksand,

  2. He deserves everything that comes his way. If an honest,hard working individual tried what Trump and his kids have done to escape taxes we would be in jail.

  3. Trump (known as “Don the Con” for decades in NYC) by the numbers:

    1.3 billion, is what Trump’s current debt is, as of Oct 2021 according to Forbes.
    2 million in damages were paid by Trump in 2019 to 8 charities after New York’s AG sued Trump for FRAUD and won (Trump was found guilty of spending charitable dollars on his personal, business, & political interests)
    30,573 FALSE or misleading claims were made by Trump in the 4 years of his presidency
    11,780 votes were ILLEGALLY asked for by Trump in a recorded phone call with Georgia election official
    780 retired generals and former national security leaders spoke out against TRUMP during his tenure
    725+ have been charged for the Jan 6th insurrection, which was led by ringleader Trump, via his tweet to “fight like hell”
    60+ BIG LIE legal challenges were lost by Trump (100% of ALL big lie legal challenges included Trump appointed judges)
    15 covid cases TRUMP said would go down to 0 soon…has now reached over 64 million (and still counting)
    13 business failures and 6 bankruptcies is Trump’s “business” resume
    11 Trump associates have now been charged with crimes
    10 new GOP state laws shift power of elections from votes to partisan entities
    7 states submitted fraudulent Electoral College documents (to support Trump’s big lie), each signed by GOP party/state officials

  4. I read the articles. Very interesting. All politics is local. I am a registered Republican in district 10 of Pennsylvania. My Congressman is Scott Perry. Perry, Jim Jordan and Marjorie Greene have consistently demonstrated they possess close ties and allegiance to Donald Trump and the big lie.What separates Jordan from Greene and Perry is that he does not have a room temperature IQ like Perry or Greene. When Perry was invited to testify to the congressional committee who is gathering information about the January 6 insurrection, he indicated it was just propaganda from the far left socialist Democrats. I’d like to point out to your website that Perry has twice sworn an allegiance To the US Constitution, once as a military officer in the National Guard and once as a representative to Congress. He has probably violated section 3 of the 14th amendment. There’s a strong suspicion that he facilitated both the planning of the insurrection and was actually instrumental with phone calls to Donald Trump on that date. They are perhaps 20% of republicans in district 10 who are now working against Perry both in the primaries and during the general election. We are hopeful Scott Perry will be defeated, but more importantly, his voting to overturn the election, and his involvement in trying to place his man as Attorney General be prosecuted as sedition. If he was truly innocent and believed in honor he would’ve willingly testified before the committee and released his encrypted phone messages to Donald Trump the day of January 6.

    • I agree that Jim Jordan doesn’t have a “room temperature” IQ like the other two morons mentioned. Jordan’s is more like a cold cellar.

  5. Any financial assistance to the middle class, working poor, minorities, senior citizens, children, the homeless, veterans, the differently abled, & the poor, even if the civilized western world has such safety nets, is considered ‘socialism’. Tax cuts, insider trading, inheritance tax free assets, off shore accounts, political influence bought & paid for, etc. Is just good old capitalism rewarding the capitalists. For the taxpayers to fund drug research without then sharing profit, to fund the media infrastructure & get nothing from licensure/profits, and the thousand ways the money flows into the pocket of the rich by law, the law They wrote. Sounds more like socialism than the deal the poor get.

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