NBC’s Chuck Rosenberg pointed out that the lawsuit by Letitia James in New York could mean financial ruin for Trump and his family.
Rosenberg said on MSNBC’s Andrea Mitchell Reports:
Liquidity for the Trump Organization is going to be a huge problem. Loans might be called. It’s going to be harder to get additional loans. The value of the properties, if the attorney general has correctly stated them, are much, much lower than the Trumps had proclaimed. This could lead, without being apocalyptic here, to financial ruin for the company. Sure, they can reorganize in another state. They are going to have to face the consequences of this lawsuit in New York state one way or the other. Litigation takes a long time. Particularly in civil cases. Particularly in crowded dockets like those in New York state.
I don’t expect we’re going to know the answer to this next week or next month or even next year. The financial problems are huge for the trump organization and for the trump family. As I mentioned earlier, I think one way or the other, we were going to end up in court with a lawsuit like this.
The Trump family’s entire business was built on loans and valuations. If they no longer have access to new loans, and the loans they had get called in due to questions of fraud, that is a big problem. If the Trump properties are valued at much less than what Trump has claimed, the Trump family is worth less money.
It is easy to see a situation where Trump and his family are financially ruined before criminal charges come into play. Trump has hundreds of millions of dollars in loans coming due to the Chinese government. Trump owes a total of $900 million in loans that are due between 2021 and 2024.
Trump was already in shaky financial shape before James announced that the state of New York wants $250 million from the Trump Organization, and it is easy to see that Rosenberg was right.
Donald Trump and his family could be facing financial ruin.
Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association