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Donald Trump's biggest creditor, Deutsche Bank, is seeking to restructure some of the president-elect's debt, Bloomberg reports. Trump's companies owe the German lender at least $364 million, more than half of his total $713 million debt load, and his loans with the bank—a potential source of leverage over the incoming commander-in-chief—pose a significant conflict of interest.
According to Bloomberg, Deutsche Bank is seeking to limit the conflict by removing Trump's personal guarantee from the loans, meaning that the president-elect would not be personally on the hook if the loans go bad. Trump has also personally guaranteed loans to his second-biggest lender, Ladder Capital Finance, to which he owes $282 million.
Bloomberg cited unnamed sources who indicated that the bank was the party seeking the changes and that delicate restructuring talks are underway. Trump's personal guarantees have helped him secure low interest rates, and if the guarantees are removed, the bank could compensate by raising the interest on Trump's loans or asking for other assets to serve as collateral.
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