Donald Trump is so fucked.
Voters will tolerate corruption. Evangelicals will support a serial adulterer, who owned casinos, and paid for sex. American Firsters will overlook two foreign-born wives. But a bank? A bank will never forgive a customer who lies to it about his finances.
That’s why the news that Mazars has not only dumped Trump as a client but announced that they’re essentially saying the financial statements they prepared for him were complete bullshit will go down as the terminal point in the Myth of Donald Trump, Businessman.
Mazars saying those financial statements are fake will be the trigger for a series of Really Bad Things that will happen to Trump in the coming months, things that, frankly, I might enjoy seeing more than any criminal case. Why? Because Trump’s identity is tied directly to his projected wealth. Take away his wealth and you take away his ego. (Note: I will still enjoy any criminal case.)
Trump’s upcoming problems are going to come from three distinct funnels: the civil consequences, the criminal probes, and those pesky banks. But it will all lead back to that Mazars letter.
Mazars’ letter will trigger reviews of civil cases–literally around the world–to see if any tax breaks or credits Trump properties received were based on the falsified accounts. Insurance companies will review their property assessments–and any claims they paid out for damages. Let’s not forget Trump’s Mar-a-Lago received $17 million in insurance coverage for hurricane damage in 2005, though no one remembers any damage, and Junior’s first wedding was held there three weeks later. All those civil cases are going to add to his legal woes.
With Trump planning to sell his DC hotel lease (reportedly for a $375 million payday), Democrats are pushing the General Services Administration to review the application and revoke the contract with the Trump Organization if the review shows the financial records cited in the application were based on the Mazars assessments. That potential liability will likely stall the sale because the buyers will fear their new contract will be nullified. So that’s $375 mill outta Don’s coffers.
Leticia James is just one legal authority Trump is facing today, but there will be more. Many, many more. Wherever Trump applied for a loan for one of his properties, Don will be facing charges of financial fraud. In Florida. In New Jersey. In Virginia. In Scotland. Wherever Trump had any refinance or initiation of a mortgage, he’s liable for these charges.
But it’s the banks that will deal the fatal blow. Mazars recantation of its work product means every loan application or partnership deal Trump signed was based on lies. And banks do not like lying borrowers. It doesn’t matter what project they loaned Trump money for–a new purchase, a renovation, vehicles, a refurbished buffet–those were all based on false financial statements. Every single one of them can be called in because of that. That could mean Trump would have to raise One Billion Dollars Cash to settle the debts or lose the properties.
And who would lend Donald Trump one billion dollars today?