Column: Wall Streets Love Affair With Blank Check Investments Wont End Happily
Wall Street is enticing investors with SPACs funds that wont say what theyre buying.
Further, the S-4 mentions other ongoing litigation involving President Trump related to the 2020 election, including a lawsuit filed by the NAACP Legal Defense & Educational Fund, and a criminal investigation launched by the Fulton County, Ga., district attorneys office … into President Trumps alleged interference in the presidential election.
Also, the U.S. House of Representatives Committee on Oversight and Reform is investigating President Trumps alleged destruction and removal of classified documents and White House records, as well as potential inaccurate financial statements filed by the Trump Organization in relation to the Trump Hotel in Washington, D.C. ”
The document continues, On April 25, 2022, a New York state court judge held President Trump in civil contempt for failing to comply with a subpoena for documents related to the New York attorney generals investigation of the Trump Organization. President Trump, along with his three eldest children , are defendants in a class-action lawsuit accusing them and the Trump Corp. of defrauding investors in exchange for secret payments from multiple companies.
Also, The Trump Organization recently paid $750,000 to settle a lawsuit filed by the District of Columbia accusing the organization of misusing nonprofit funds from the 58th Presidential Inaugural Committee.
Admirably Tough Or Downright Slimy Your Call
Donald Trump has ticked off a whole lot of different groups during his outspoken and unconventional run for the presidency. Few small business owners are among them.
Back during the primaries when he was an unlikely challenger to a slew of other more mainstream Republican candidates, Trump managed to attract the support of a whopping 41 percent of small business owners despite the crowded field. Even after a year of gaffes and controversy, more recentpolls suggest small business owners remain among Trumps most stalwart supporters.
But there are some interesting and very vocal exceptions the many small business owners Donald Trump has stiffed in his long career as a real estate tycoon.
Recently several media outlets have dug up a handful of business owners with worrying tales to tell of Trumps bullying, unfairness, and failure to pay. And while their numbers arent huge, there are enough of them to suggest a pattern of behavior that raises questions about whether pre-politics Trump was much of a friend to small business in practice. Here are a few of their stories:
Times Donald Trumps Companies Declared Bankruptcy
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After spending much of the millennium flirting with the idea, Donald Trump actually announced on June 16 that hes going to make a run for the Republican presidential nomination . And while that means the 69-year-old will have plenty of time to air his heady political blend of opinion and charisma, it also means that the flamboyant entrepreneur will fall under more financial scrutiny than ever before.
While hes vowed to turn over his records to the Federal Election Commission on time, one of The Donalds biggest claimsthat hes worth $8.7 billionhas already been called into question. Forbess accounting recently put the figure at $4.1 billion. Sure, that means hes still really richliterally one of the cornerstones of his runbut maybe not as really rich as he wants people to believe.
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Then there are the bankruptcy filings, which have been a leitmotif in public opera that is The Donalds long, storied business and media career. As he is quick to remind everyone, he has never actually declared bankruptcy himself. So lets clear up any confusion there, right away, with some trademark Trump indignation.
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1991, Trumps Taj Mahal in Atlantic City
1992, Trump Plaza Hotel in Atlantic City
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Trump Castle Associates 1992
In less than a year he was back in bankruptcy court for his other Atlantic City casinos. This bankruptcy included the Trump Plaza Hotel in New York, the Trump Plaza Hotel and Casino in Atlantic City as well as the Trump Castle Casino Resort. He gave up half his interest in the New York Plaza to Citibank, but retained his stake in the casinos.
Personal Vs Business Bankruptcy
Theres an important distinction to be made. Trump has never actually filed for personal bankruptcy. Instead, four of his businesses have filed for Chapter 11 bankruptcy.
Taj Mahal was the first in 1991 and was followed by the Trump Plaza Hotel the next year. After over 10 years of general stability, the Trump Hotels and Casino Resorts filed in 2004 and the Trump Entertainment Resorts in 2009.
Trump claims his personal finances were only involved in the Taj Mahal Chapter 11 bankruptcy filing. This is the reason Trump has been able to come out on top after multiple filings. Not involving his personal finances in the corporations operations protected his own bank account from total ruin.
Trump understands the difference between business and personal bankruptcies quite well. If you run your own business, its important that you do too.
Business Bankruptcy:
Filed by a business or an individual in the case that business-related debts cannot be paid. Corporations and partnerships, in which the entities are separate from the owners, may file for Chapter 7 or Chapter 11 bankruptcy.
Sole proprietorships, in which the owner is legally responsible for business-related debts, may file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy.
Personal Bankruptcy:
Filed by an individual in the case that personal debts cannot be paid. Individuals typically file for Chapter 7 or Chapter 13 bankruptcy.
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Were Watching Trumps 7th Bankruptcy Unfold
As a businessman, Donald Trump ran 6 businesses that declared bankruptcy because they couldnt pay their bills. As the president running for a second term, Trump is repeating some of the mistakes he made as a businessman and risking the downfall of yet another venture: his own political operation.
In the 1980s, Trump was a swashbuckling real-estate investor who bet big on the rise of Atlantic City after New Jersey legalized gambling there. He acquired three casinos that by 1991 couldnt pay their debts. The Taj Mahal declared bankruptcy in 1991, the Trump Plaza and the Trump Castle in 1992. Lenders restructured the debt rather than liquidate and Trump put his casino holdings into a new company that went bankrupt in 2004. The company that emerged from that restructuring declared bankruptcy in 2009. Trumps 6th bankruptcy was the Plaza Hotel, which he bought in 1988. It went bankrupt by 1992.
Trumps surprise victory in 2016 paralleled the arrival of the brash upstart in Atlantic City more than 30 years earlier. But in the fourth year of his presidency, the Trump operation is once again reeling. Voters give him poor marks for handling the coronavirus crisis, underscored by an outbreak at the White House that infected Trump himself. Democrat Joe Biden is beating Trump is most swing states and an Election Day blowout is possible. Trump has suggested he wont leave office if he loses, threatening a constitutional crisis and his own political legacy.
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And Don’t Forget About Dear Leader
The former president condemned the student debt relief program in a statement, saying, Joe Biden and the Radical Left Democrats have just orchestrated another election enhancing money grab, this time to the tune of $300,000,000,000 and just like I predicted, its coming right out of the pocket of the working-class Americans who are struggling the most!
I believe we know from his performance in the White House that Trump was not a fan of homework.
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Famous People Who Filed Bankruptcy
And the list keeps growing.
They all used bankruptcy to get rid of debt,…and then got on with their lives.
Each of these famous people got the full benefit of filing bankruptcy…when they needed it.
Why not you?
Bad times come to all of us…even celebrities.
If someone that well off could get into financial trouble…it could happen to anyone.
If it could happen to anyone,…maybe you shouldnt be so hard on yourself.
These famous people were given a chance……to get rid of debt…to get rid of stress…to get back on track…and to start over fresh.
Making Bankruptcy Workthe Donald Trump Way
The campaign for the presidency of the USA generated a lot of heat and dust. One of the issues that was raised repeatedly is the many bankruptcies that now President Donald Trump has undergone. One of the questions that appears to amaze a lot of people is how he is still a billionaire after having gone through four bankruptcies.
The answer is quite simple. Donald Trump has NEVER declared bankruptcy.
Astonished?
Dont be. The details are important. Donald Trump has never declared personal bankruptcy. Instead, the organizations of which he has been a part owner through his shareholding have declared bankruptcy under Chapter 11. That technicality is very important and sometimes overlooked in the heat of the debates.
Are you also in a similar situation and facing critical financial position? Instead of looking all over the place, it is recommended that you hire the services of one of the top bankruptcy lawyers Largo. Your attorney will decide if it is really necessary to file for bankruptcy and under which chapter you should file under. The right chapter 11 attorney Maryland will be your best guide for dealing with such circumstances.
Corporations are quite distinct from the person or people who form them and are treated as such by the law. Therefore, when Trump Hotels and Casino Resorts filed for bankruptcy in 2004, it was the company that owed people money and not the man himself.
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How Donald Trump Bankrupted His Atlantic City Casinos But Still Earned Millions
By Russ Buettner and Charles V. Bagli
ATLANTIC CITY The Trump Plaza Casino and Hotel is now closed, its windows clouded over by sea salt. Only a faint outline of the gold letters spelling out T-R-U-M-P remains visible on the exterior of what was once this citys premier casino.
Not far away, the long-failing Trump Marina Hotel Casino was sold at a major loss five years ago and is now known as the Golden Nugget.
At the nearly deserted eastern end of the boardwalk, the Trump Taj Mahal, now under new ownership, is all that remains of the casino empire Donald J. Trump assembled here more than a quarter-century ago. Years of neglect show: The carpets are frayed and dust-coated chandeliers dangle above the few customers there to play the penny slot machines.
On the presidential campaign trail, Mr. Trump, the presumptive Republican nominee, often boasts of his success in Atlantic City, of how he outwitted the Wall Street firms that financed his casinos and rode the value of his name to riches. A central argument of his candidacy is that he would bring the same business prowess to the Oval Office, doing for America what he did for his companies.
Atlantic City fueled a lot of growth for me, Mr. Trump said in an interview in May, summing up his 25-year history here. The money I took out of there was incredible.
Many others were glad to see him go.
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‘keep The Donald Afloat’
” could have simply taken everything he had right then, but they wanted his cooperation,” said Lynn LoPucki, a bankruptcy expert and professor at UCLA Law School. “There’s that old saying, ‘If you owe your banks a little, you’re at their mercy. If you owe the banks a lot, the banks are at your mercy. They saw the best way for him to repay the money was to keep the Donald afloat.”
The Donald struck a deal with the banks to hand over half his ownership, and half of the equity, in the casino in exchange for a lower interest rate and more time to pay off his debt. He sold off his beloved Trump Princess yacht and the Trump Shuttle airplane to make his payments, and his creditors put him on a budget, putting a cap on his personal spending.
“The first one was a really big hit for him. They had him personally, and he ended up taking substantial losses in that bankruptcy. He also had the humiliation of having some bankers deciding how much money he could spend — the numbers are just astonishing — the amount of his monthly budget,” LoPucki said.
John Pottow, a bankruptcy expert and law professor at the University of Michigan, said banks would often agree to lose millions in reorganizations like Trump’s to prevent the massive losses they would incur if they foreclosed on the property.
“Banks will take considerable haircuts,” Pottow said. “It’s sort of like you have a sick patient so you cut off a couple toes to stop the gangrene. Now he’s missing a few toes, but he’s still alive.”
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We Are Watching Trumps 7th Bankruptcy Unfold
Donald Trump was a businessman who ran six businesses that went bankrupt because they couldnt pay their bills. Trump, who is running for president again, repeats some of his business mistakes and risks the demise of another venture: his political operation.
Trump, a charismatic real-estate investor and swashbuckler in the 1980s, bet big on Atlantic Citys rise after New Jersey legalized gaming. Trump acquired three casinos that couldnt pay off their debts by 1991. In 1991, the Taj Mahal, Trump Plaza and Trump Castle declared bankruptcy.
Trump transferred his casino assets to a new company, which went bankrupt in 2004 after the lenders restructured the debt. In 2009, the company that emerged from this restructuring declared bankruptcy. Trumps sixth bankruptcy was the Plaza Hotel which he purchased in 1988. It was declared bankrupt in 1992.
Trumps 2016 surprise win mirrors the 30-year-old arrival of Atlantic Citys brash young man. Trumps presidency is now in its fourth year. He gets poor marks from voters for his handling of the coronavirus crisis. The outbreak exacerbated this at Trumps White House.
Democrat Joe Biden is winning in most swing states, and an Election Day blowout could be possible. Trump has suggested he wont leave office if he loses, threatening a constitutional crisis and political legacy.
Trumps bankruptcies are an essential reason for the Trump campaigns current turmoil.
These are five similarities:
Despite Holding Huge Assets Trump Needs Money More Than His Presidential Predecessors Ever Did But He Faces Multiple Barriers Of His Own Making
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As Trump knows only too well, lawyers are expensive
What next for Donald Trump? World leaders dont, as a rule, go hungry upon leaving office. There are positions on corporate boards to take up, lucrative speaking engagements to be booked, handsome advances for books even if they dont sell quite as well as expected . The consulting opportunities are endless, as Tony Blair has proved. Theyre not always terribly savoury but that usually merits only passing attention.
Trump, however, is in the difficult position of needing the money more than any of his predecessors did, despite holding huge assets. He also faces barriers of his own making the insurrection he fomented the most obstructive of all to at least some of the perks former presidents typically enjoy. Many of the people who welcomed George W Bush and cut him a cheque when he wasnt painting wont want to associate with Trump.
His legal problems, meanwhile, are just beginning and legal experts consider the idea of Trump preemptively pardoning himself a non-starter. Besides, this would only cover federal, and not state, offences.
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Personal Vs Corporate Bankruptcy
One point of clarification: Trump has never filed personal bankruptcy, only corporate bankruptcy related to some of his business interests. I have never gone bankrupt, Trump has said.
Here is a look at the six Trump corporate bankruptcies. The details are a matter of public record and have been widely published by the news media and even discussed by Trump himself.
Trump Never Loses Another Chance
Despite his many missteps, Trump has always rebounded and found new ways to pursue his interests. Trump shifted his business from developing projects to licensing and management deals after he had failed in the 1990s.
Trumps star rose to new heights when he was made a reality TV star as The Apprentice even though his casino business went bankrupt twice more. He capitalized on his fame to run for President in 2016, defeating two political dynasties, the Clinton and Bush families, on his way to becoming the White House.
Even if he loses in democrats2020 and experiences the same embarrassing setback as his hotel or casino failures, Trump will still be there. Trump has an extraordinary gift for selling that leads to more deals, sometimes with ex-partners who have reacted negatively to him but then warmed to him again.
Trump sued Deutsche Bank in 2008 to get some of his loan payments back. He was trying to sell condos in his Chicago tower. After two years of legal battles, the two sides settled, and Deutsche Bank began lending Trump money again in 2011. Trump likely hopes that 2020 voters will be equally forgiving.
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He Holds His Partner Hostage
Trumps bankruptcies led to the loss of hundreds of millions of dollars by his lenders. Other businesses that are underperforming Theyve written off losses often and given Trump more credit because its better than liquidation.
A former chairman of New Jerseys casino commission, Trump was described as too big for failure Atlantic City: If his casinos had stopped operating, it could have devastated the local economy.
Lenders and gaming officials came up with ways to keep Trump in the game while decreasing his control over these businesses. This was so that he wouldnt be able to take over again.
Numerous Republican senators and members are now linked to Trump through the political equivalent of a bank relationship. In a bid to be the political leader, Trumps fellow Republicans gave their support.
They were also winning when Trump was winning. If Trump loses, many of them will follow him. This could result in Republicans losing Senate elections in Arizona, Colorado and Iowa as well as North Carolina and giving Democrats control of the Senate.
Democrats will also control the executive and legislative branches if Biden wins the White House in a sweeping defeat for Trump and his GOP allies.
