Trump International Hotel and Tower slated for completion in mid-2009.

It’s becoming more and more obvious that the problems with the American economy are going to continue for the next several years.  If for no other reason then the knee-jerk reaction that banks and financial institutions are taking to limit their exposure to real estate related investments.  There is no greater example of this then the recent lawsuit filed by Donald Trump against lenders looking to reduce their exposure on the Trump International Hotel and Tower – a 92 story hotel and condominium high-rise architected to be the second-tallest building on United States soil.

Unlike most Trump stories – this isn’t really about Trump or his ego or even about some grandiose plan to expand his empire.  This story is about terminology, bank loans, and whether you believe that the “unprecedented financial crisis in the credit markets” is equivilent to a force majeure equal to an act of war or a natural disaster.  If you believe Trump (or anyone looking at the first page of a foreclosure document), you would consider the financial markets some sort of natural disaster, and that would require an extension and additional funding as provided in the original Trump loan package.

No matter how you slice it – we’re talking about a lot of money and Trump’s suit includes him asking for $3 billion in damages.  What’s written in between the lines is the reality that the original lending group, led by Deutsche Bank, is partly responsible for creating the “unprecedented financial crisis in the credit markets” that the entire world is suffering through today.  Not solely responsible of course, but definitely not innocent, either.  It should be up to them to help groups like Trump (God forbid another government bailout) and hold true with the terms of their agreement.  Beyond that, it’s their moral obligation at this point to make every effort to sustain theri customers, integrity, and position as a lendor in the community.  If they drop out now it’s a sure sign that more problems are looming on the horizon.

Ranter