• 2 weeks ago
The Republican nominee owes more money today than he ever did during his first presidency, according to a Forbes analysis.

Read the full story on Forbes: https://www.forbes.com/sites/danalexander/2024/10/30/heres-how-much-money-trump-owes-and-who-stands-to-collect/

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Transcript
00:00Today on Forbes, here's how much money Trump owes, and who stands to collect.
00:07Donald Trump likes to downplay the amount of money he owes.
00:10Earlier this year, he said, quote,
00:12I've got very low debt on buildings, like this building.
00:16He was standing in the lobby of 40 Wall Street,
00:19a property that appears to be underwater because of its $118 million mortgage,
00:24just one liability in a portfolio with $1.8 billion of them.
00:30Trump reworked his balance sheet after leaving the White House,
00:33paying off more than a half dozen loans.
00:35But three major court decisions collectively
00:38added an estimated $574 million of liabilities to his balance sheet.
00:43He holds roughly $410 million of cash and more than $9 billion
00:48of other assets, including almost $6 billion
00:51worth of shares in his very volatile social media venture,
00:55which he could theoretically liquidate to pay off creditors.
00:59Presented with a list of liabilities, Trump's chief legal officer,
01:03Alan Garton, pointed out that the former president is appealing
01:06the legal judgments and took issue with Forbes' numbers,
01:09noting that they include debt against buildings
01:11where Trump is a limited partner and therefore
01:14would not be personally liable in the event of a default.
01:17Garton also seemed to suggest, nonsensically,
01:20that money owed to members of Trump's clubs
01:22should not be included in the tally because Trump will pay them back
01:26with future income.
01:28Meanwhile, campaign spokesperson Stephen Chung
01:31touted Trump's career successes and suggested that the former president
01:34owes fewer Washington insiders than other politicians.
01:38Chung said, quote,
01:39because of his love of America, he decided to run for the White House
01:43as an outsider not beholden to the establishment.
01:46Whether or not that's true, there's no question that Trump owes money
01:49to plenty of creditors.
01:51Forbes decided to break it all down, explaining when the liabilities come due,
01:55how expensive the interest will be, and who stands to collect the cash.
01:59Here are just a few of Trump's liabilities.
02:02First, his business litigation in the amount of $482 million
02:07owed to the New York attorney general.
02:09The largest liability on Trump's balance sheet is also its biggest question mark.
02:13A judge ordered the former president to pay $454 million
02:17after the New York attorney general sued Trump for lying about his net worth.
02:21Trump is appealing the decision, with big money on the line.
02:25While the litigation moves through the courts,
02:27interest accrues at a rate of 9% a year,
02:30adding more than $3 million a month to Trump's liabilities.
02:34If Trump wins the appeal, though, he could save hundreds of millions of dollars.
02:39The next liability is 555 California Street
02:42in the amount of $360 million owed to JPMorgan Chase.
02:47The former president and his partner, publicly traded Vornado Realty Trust,
02:51refinanced their three-building complex in San Francisco shortly after Trump left office,
02:56replacing a $533 million loan with a $1.2 billion one.
03:01As part of the deal, Trump received an estimated $160 million in cash.
03:06But the partners opted for a variable interest rate,
03:09and Trump did not hedge, at least initially,
03:12leaving him vulnerable when the Federal Reserve started jacking rates to combat inflation.
03:18Trump's share of the project is now barely earning enough to cover his interest expenses,
03:22according to an analysis of investor filings.
03:25The good news for Trump?
03:26He is a limited partner in the deal,
03:28which means he would not be personally liable if there were a default.
03:33Another liability is 1290 Avenue of the Americas
03:36in the amount of $285 million owed to JPMorgan Chase, Bank of Montreal, and Citigroup.
03:43Trump and Vornado also refinanced this tower in New York City,
03:47again going with a variable interest rate.
03:49The partners ended up hedging in November 2023
03:52by purchasing something known as an interest rate cap,
03:55doling out $63 million to limit their interest rate to 2.62% until November 2025.
04:02They hedged at the wrong time, though,
04:05locking in rates just as they were finally starting to decline.
04:09As a limited partner, Trump does not control the day-to-day operations of the project
04:13and has less downside if things devolve.
04:16For full coverage and to see the whole list of Trump's debt liabilities,
04:20check out Dan Alexander's piece on Forbes.com.
04:24This is Kieran Meadows from Forbes.
04:27Thanks for tuning in.

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