Deutsche Bank Drops the Hammer: “Trump Lied on Application Forms” Slashes His Self-Reported Net Worth with a “Haircut”

Gabriel RomanNov 13, 2023

Minute Read

Recently, news about the “Trump haircut” went viral. This banking term, tied to Trump’s net worth, has caught everyone’s attention. However, unlike what some people expected, these revelations have nothing to do with Trump’s iconic hairstyle. Instead, it’s related to how Deutsche Bank put this ‘haircut’ on Trump’s net worth.

Trump’s Initial Claims

Rewind to twelve years ago. There, you’d find a confident Trump declaring his net worth to be a whopping $4.26 billion. This figure, presented to Deutsche Bank, is now under the microscope, particularly after the Bank’s adjustment of figures. This has led many to question its truthfulness.

The Trump Haircut Revealed

However, despite being his long-time financial partner, they didn’t just take Trump’s word for it. They changed the figures he presented while applying for loans, leading to the popular term “Trump haircut.” This revelation has left many wondering about the real intricacies of big bank loans.

The Burning Question

However, many people had questions about this term. New York civil fraud trial attorney Kevin Wallace asked, “First of all, what is a haircut?” His query was directed at Nicholas Haigh, a key figure in Trump’s financial dealings. Wallace’s question echoed the thoughts of many following the trial.

Nicholas Haigh’s Role

Additionally, Nicholas Haigh wasn’t just another name in banking. He was pivotal in ensuring Trump secured loans exceeding $400 million from Deutsche Bank. As the trial progresses, all eyes are on Haigh. Many people aimed to evaluate his role and actions in the entire loan process.

Unraveling the ‘Haircut’ Term

Haigh then cleared the term up for everyone. He stated, “A haircut reduces the stated asset value to estimate its real worth.” According to him, it’s not just a term. Instead, it’s a banking practice that determines the actual value of assets. With Haigh’s clarification, this once obscure term is now at the heart of discussions.

Post-Haircut Figures

After the “Trump haircut,” Deutsche Bank’s calculations indicated Trump’s net worth could be a mere $2.365 billion, compared to his initial $4.26 billion claim. Considering Haigh’s revelations about haircuts, this adjustment was significant. It brought forward a contrasting image of Trump.

Deutsche Bank’s Insight

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Having dealt with numerous clients, Deutsche Bank appeared to have reservations about Trump’s optimistic numbers. However, it is unclear what the direct cause of these reservations was. Some have argued that the legal troubles surrounding Trump may have led to a reassessment. Others have argued that it is unfair behavior towards Trump.

The Documentation Trail

Within the Bank’s official documents, Trump’s robust net worth claim was clear to see. However, next to it, there is an “adjusted” column. This column shows Deutsche Bank’s careful and perhaps skeptical approach to their client’s estimations. Despite their long-standing relationship, it appears they were unsure of his claims.

Importance of the Haircut Figure

Highlighting the significance of these recalculations, the Attorney General’s report stated that the adjusted figure was crucial. They argued that it helps to determine “whether to extend or maintain credit” from the Bank’s perspective. According to them, this wasn’t just a matter of numbers but one of credibility and financial trust.

Role of Loans in Trump’s Empire

Beyond financial support, the loans Trump received played a central role in shaping his business dynasty. His ability to secure hefty amounts, like $125 million for the Trump National Doral Miami golf resort, helped strengthen his ventures. They also amplified his status in the business world, setting the stage for his political aspirations.

Loan Breakdown

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These loans included the one that the Trump National Doral Miami golf resort received. It was a substantial $125 million, enhancing its luxury appeal. Then there’s the architectural marvel, the Trump International Hotel in Chicago, which benefited from $107 million. Additionally, a historic structure, the Old Post Office in Washington, D.C., was given new life with a $170 million facelift.

Social Media Eruption

As soon as the news about the “Trump Haircut” hit the digital sphere, the internet was ablaze with reactions. Users from different backgrounds expressed their shock and bewilderment, with some struggling to make sense of the financial intricacies involved. However, it wasn’t all serious, as many found humor, crafting witty remarks and memes.

Financial Skepticism Surfaces

Some users used these revelations to show their unease towards Trump. One user commented, “Always had my doubts about those inflated figures! Seems like the Trump Haircut just spilled the beans.” This feeling of suspicion was clear with many users, who also questioned Trump’s ability to tell the truth.

Trump’s Business Skills

“Every good businessman knows how to use assets to their advantage. Why single out Trump? He’s just playing the age-old game of economics,” argued a supporter. They underlined the frequency of such practices in the world of big businesses. This perspective hinted that pinpointing Trump might be a tad unfair.

Light-Hearted Queries on the Trump Trend

Others used humor to talk about the news. One user joked, “Is there a salon where I can get a ‘Trump Haircut’? If it means inflating my bank balance, I’m first in line!”. Some users shared these feelings, making similar jokes. However, some users questioned whether it was appropriate to make light of such serious situations.

Looking into Banking Protocols

“Reevaluating assets isn’t some top secret plan. It’s a fundamental banking procedure. Republicans are just mad at Deutsche Bank for something all banks routinely do?” posed an industry insider. This user suggested that singling out Deutsche Bank might be a bit of an overreach, prompting a broader conversation about banking institutions worldwide.

Deeper into Murky Waters

“If Trump’s assets got this haircut, then who knows how many other moguls got completely bald? The shadows in the financial realm are deeper than we imagined!” This statement threw a glaring spotlight onto the ethics and practices of banks. Many people questioned how transparent financial institutions are and if the wealthy get better treatment.

Stirring Defense

“Are we cherry-picking every figure? STOP THE WITCH HUNT!” With an atmosphere rife with speculation, this stance was a beacon, urging folks to step back. This viewpoint, seen as either a voice of reason or a defense mechanism, reminded people of the dangers of jumping to conclusions without fully understanding.