Axos Bank, an online-only financial institution whose CEO is a Donald Trump donor, has approved $225 million in loans to the ex-US president. The funds were intended to support Trump’s 2024 presidential run and his struggling businesses after his previous longtime lender severed ties with him following the January 6 riots at the US Capitol.
Financial analyst Bert Ely emphasized the importance of someone extending credit to Trump in order to prevent his loans from going into foreclosure. This was not only crucial for Trump’s financial stability but also for his political standing.
After Trump was dropped by his longtime accounting firm Mazars in the aftermath of the Capitol riots, Axos Bank stepped in. Mazars had warned other institutions to be cautious of Trump’s financial situation. However, Gregory Garrabrants, the CEO of Axos Bank and a frequent Republican donor, disregarded the warning and approved a $100 million loan for Trump Tower in New York City, which served as the former president’s primary residence until 2019.
One day after the initial loan approval, Axos Bank granted Trump an additional loan of $125 million to finance parts of his Doral golf resort in Florida, which he had purchased in 2012. Moreover, the bank also helped finance a loan taken out by a group of investors to acquire Trump’s Washington, DC hotel for $375 million in the previous year.
The Washington Post analyzed disclosure records and financial documents related to Axos Bank’s loans to Trump. The newspaper concluded that these loans were crucial in stabilizing Trump’s post-White House finances and establishing a financial foundation for his potential third presidential campaign in 2024. At the moment, Trump is leading the Republican polls as a potential GOP nominee.
However, the loans from Axos Bank come with less favorable repayment terms compared to other financial lenders. Edward Hemmelgarn, a financial expert and president of Shaker Investments, suggests that Trump had no choice but to accept these terms because no other institution was willing to provide him with a loan.
Regarding concerns about Trump’s multiple bankruptcies in the past, Garrabrants responded that if borrowers fail to repay, he has the authority to seize their assets.
In conclusion, Axos Bank’s $225 million in loans has been instrumental in supporting Trump’s post-White House financial stability and potentially facilitating his third presidential campaign. Despite the less lenient repayment terms, it appears that Trump had limited options and ultimately relied on the support of a Trump-friendly financial institution to secure these loans.