When Trump has needed cash, a California bank and one of its top shareholders come to the rescue
Donald Trump left the White House facing a cash crunch that threatened his business empire
WASHINGTON — WASHINGTON (AP) — Donald Trump left the White House facing a cash crunch and a tattered reputation after his attempts to overturn the 2020 election, threatening the viability of his business empire. Soon, though, a new source stepped forward to provide a financial lifeline when many longtime lenders refused.
Over the past two years, Axos Bank, as well as its largest individual shareholder, California billionaire Don Hankey, have collectively extended more than $500 million in financing that has benefited Trump, records show. The cash influx has helped Trump to pay off debts and pocket a tidy profit while escaping from a lease on his money-losing former hotel in Washington.
It also covered a $175 million down payment he made this week on an eye-popping civil fraud penalty.
Axos Bank officials as well as Hankey have said that the deals offer them a financial upside.
But as Trump again pursues the White House, ethics and legal experts question what the lenders may ask in return if there's a future Trump presidency, considering even small regulatory changes can translate into millions of dollars in earnings.
“If the guy gets back in the White House, they've got him over a barrel,” said Richard Painter, a former ethics lawyer for President George W. Bush who later ran for Senate in Minnesota as a Democrat.
Financial statements and court records detail how both Axos Bank and Hankey have faced heightened oversight under Democrats.
The Securities and Exchange Commission investigated Axos during Barack Obama's presidency after a whistleblower filed a lawsuit accusing the bank of violating anti-money laundering rules,
Read more on abcnews.go.com
