Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

While concerns over Trump's conflicts of interest continue to mount, the president-elect has thus far failed to address the issue. (Photo: d_pham/flickr/cc)

While concerns over Trump's conflicts of interest continue to mount, the president-elect has thus far failed to address the issue. (Photo: d_pham/flickr/cc)

No Conflict Here: 150 Wall Street Firms Own Over $1.5 Billion of Trump's Debt

Wall Street Journal analysis uncovers scope of Trump's web of debt and the financial institutions 'in a potentially powerful position over the incoming president'

Lauren McCauley

As many suspected, President-elect Donald Trump's web of business conflicts is much more complicated than he has let on.

An analysis by the Wall Street Journal published Thursday found that the incoming president owes at least $1.85 billion in debt to as many as 150 Wall Street firms and other financial institutions.

According to the examination of legal and property documents, "Hundreds of millions of dollars of debt attached to Mr. Trump's properties, some of them backed by Mr. Trump's personal guarantee, were packaged into securities and sold to investors over the past five years," thus "broadening the tangle of interests that pose potential conflicts for the incoming president's administration."

In May, Trump filed documents with the Federal Election Commission (FEC) that disclosed $315 million owed to 10 companies—but that only included debts for companies that Trump completely controls, "excluding more than $1.5 billion lent to partnerships that are 30 percent owned by him," WSJ reported.

"As a result," wrote WSJ reporters Jean Eaglesham and Lisa Schwartz, "a broader array of financial institutions now are in a potentially powerful position over the incoming president."

Put more directly, as Think Progress's Judd Legum did: "As president, Trump will be responsible for regulating entities that he also owes money to."

In one troubling example, the investigation found that Wells Fargo, currently under investigation for a years-long banking fraud scandal, "runs at least five mutual funds that own portions of Trump businesses' securitized debt;" is "a trustee or administrator for pools of securitized loans that include $282 million of loans to Mr. Trump;" and "acts as a special servicer for $950 million of loans to a property that one of Mr. Trump's companies partly owns."

"Once he takes office," Eaglesham and Schwartz observed, "Mr. Trump will appoint the heads of many of the regulators that police the bank."

The spread of Trump's debt can in large part be attributed to the process known as "securitization," when debt is repackaged into bonds and sold off. More than $1 billion of debt connected to the president-elect has been handled in this way. 

While concerns over Trump's conflicts of interest continue to mount, the president-elect has thus far failed to address the issue. Despite warnings from ethics attorneys, he has refused to divest his business holdings, though there were reports that he would hand the reins of the real estate empire over to his sons and advisors, Donald Jr. and Eric. At the same time, a December press conference was postponed and is now scheduled for Jan. 11—the same day as some of his more controversial appointees' confirmation hearings.


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Don't Exist.

Colin Powell, Who Helped George W. Bush Lie Nation Into Iraq War, Dead at 84

"It's crucial to remember just how important Colin Powell was to selling the Iraq War, and how deliberately he used his public credibility to boost the lies that pushed us into the war. That is his biggest legacy."

Jon Queally ·


'Indefensible': US Billionaires Became $2.1 Trillion Richer in 19 Months of Pandemic

New analysis shows that just 745 individuals have combined $5 trillion in wealth—most of which will never be taxed—as nations reels from pain inflicted by Covid-19.

Jon Queally ·


Coalition Urges Biden to Make 'Transformative Change' in Approach to Global Food and Agriculture

"This pro-corporate agriculture agenda must change under your watch."

Andrea Germanos ·


Mondaire Jones Warns Against Watering Down Human Infrastructure Proposals

The New York Democrat is advocating universal programs, not means-tested ones, for programs in the Build Back Better plan.

Andrea Germanos ·


Manchin Threatening Key Climate Provision: Reports

"To take it out is to decide that climate change isn't a problem."

Andrea Germanos ·

Support our work.

We are independent, non-profit, advertising-free and 100% reader supported.

Subscribe to our newsletter.

Quality journalism. Progressive values.
Direct to your inbox.

Subscribe to our Newsletter.


Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit | Privacy Policy
Common Dreams Logo