Politics Trump's Many Business Failures, Explained

Discussion in 'The Howard Stern Show' started by kinneyjames, Aug 5, 2016.

  1. kinneyjames

    kinneyjames Well-Known Member

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    http://www.newsweek.com/2016/08/12/donald-trumps-business-failures-election-2016-486091.html

    Some snippets for those who don't like to read words:

    Lost contracts, bankruptcies, defaults, deceptions and indifference to investors—Trump’s business career is a long, long list of such troubles, according to regulatory, corporate and court records, as well as sworn testimony and government investigative reports. Call it the art of the bad deal, one created by the arrogance and recklessness of a businessman whose main talent is self-promotion.

    Snip

    Despite having no real success of his own, by the late 1970s, Trump was swaggering through Manhattan, gaining a reputation as a crass self-promoter. He hung out in the fancy nightspot Le Club, where he was chums with prominent New Yorkers like Roy Cohn, the one-time aide to Senator Joe McCarthy who was one of the city’s most feared and politically connected attorneys. Cohn became one of the developer’s lifelong mentors, encouraging the pugilistic personality that showed itself all the way back in second grade, when Trump punched his music teacher.

    Snip

    Still, he wanted more in Atlantic City—specifically, the Taj Mahal, the largest casino complex ever, which Resorts International was building. This made the Casino Control Commission nervous because it could have meant that the financial security of Atlantic City would be riding on the back of one man. But Trump brushed those concerns aside at a February 1988 licensing hearing—after all, his argument went, he was Donald Trump. He would contain costs, he said, because banks would be practically throwing money at him, and at prime rates. He would be on a solid financial foundation because the banks loved him so much, unlike lots of other companies and casinos that used below-investment-grade, high-interest junk bonds for their financing. “I’m talking about banking institutions, not these junk bonds, which are ridiculous,” he testified.

    But Trump’s braggadocio proved empty. No financial institution gave him anything. Instead, he financed the deal with $675 million in junk bonds, agreeing to pay an astonishing 14 percent interest, about 50 percent more than he had projected. That pushed Trump’s total debt for his three casinos to $1.2 billion. For the renamed Trump Taj Mahal to break even, it would have to pull in as much as $1.3 million a day in revenue, more than any casino ever.

    Disaster hit fast. As had been predicted by some Wall Street analysts, Trump’s voracious appetite cannibalized his other casinos—it was as if Trump had tipped the Atlantic City boardwalk and slid all his customers at the Trump Castle and Trump Plaza down to the Taj. Revenues for the two smaller casinos plummeted a combined $58 million that first year.

    Snip

    By December, Trump was on the verge of missing an interest payment on the debt of Trump Castle, and there was no room left to maneuver with the banks this time. So, just as he had in the past, Trump turned to Dad for help, according to New Jersey state regulatory records. On December 17, 1990, Fred Trump handed a certified check for $3.35 million payable to the Trump Castle to his attorney, Howard Snyder. Snyder traveled to the Castle and opened an account in the name of Fred Trump. The check was deposited into that account and a blackjack dealer paid out $3.35 million to Snyder in gray $5,000 chips. Snyder put the chips in a small case and left; no gambling took place. The next day, a similar “loan” was made—except by wire transfer rather than by check—for an additional $150,000. This surreptitious, and unreported, loan allowed Donald Trump to make that interest payment. (The Castle later settled charges by the Casino Control Commission of violations from this escapade and paid a $65,000 fine.)

    Much more at link
     
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  2. Kool

    Kool Well-Known Member

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    thank you for your service
     
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  3. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    Do you need to start a shit thread every time you read an article about Trump?

    Why don't you create one thread and keep adding to it?

    [​IMG]
     
  4. burunduk34

    burunduk34 Well-Known Member

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    Great article, it really shows why we need to elect Donald--no matter what the adversity is, Trump always marches forward and achieves his goals.
    Compare this to people like Obama and Hillary, who've been bitchslapped repeatedly on international arena.
     
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  5. skylarbrie

    skylarbrie VIP Extreme Gold

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    trump will never release his tax returns...never
     
  6. XXXL yoga pants

    XXXL yoga pants Well-Known Member

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  7. kinneyjames

    kinneyjames Well-Known Member

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    Different subjects and a really good article that deserves its own thread. Please read and refute.
     
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  8. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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  9. kinneyjames

    kinneyjames Well-Known Member

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    That's flattering, but as you can tell by my posts I'm here as a kindred spirit.
    Love the Hate Club!