Deutsche Bank Slashes Trump’s Net Worth- ‘We’re Tired of Listening to Him Lie’

By: Georgia | Last updated: Nov 19, 2023

Recent discussions about the “Trump haircut” have created waves in the media about former President Donald Trump’s financial status.

Contrary to assumptions related to Trump’s signature hairstyle, the term delves into adjustments made by Deutsche Bank on Trump’s self-reported net worth.

Trump's Bold Net Worth Claim

Approximately twelve years ago, Donald Trump presented a confident assertion to Deutsche Bank, valuing his net worth at $4.26 billion. 

Former U.S. President Donald Trump in a blue suit and red tie, gesturing with his hands as he addresses an audience. Surrounding him are blurred figures, including a man in a red tie to the left

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This specific claim has recently come under scrutiny, prompting a reassessment of its authenticity.

Deutsche Bank's Response

While Deutsche Bank had a long-standing financial relationship with Trump, they opted to adjust the net worth figures he submitted when applying for loans. 

Exterior view of a Deutsche Bank branch, with the bank's iconic blue logo prominently displayed

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This process of adjustment gave rise to the term “Trump haircut,” spurring interest in the workings of significant bank loans.

Unpacking the "Haircut" Term

The term “haircut” caused confusion, leading Kevin Wallace, a New York civil fraud trial attorney, to inquire about its meaning. 

Former President Donald Trump seated at a table during a trial, attentively looking ahead

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His question was directed at Nicholas Haigh, an influential individual in Trump’s financial interactions, reflecting the sentiments of many.

Nicholas Haigh Clarifies the Concept

Nicholas Haigh responded to the queries by defining a “haircut” as a method to reduce the stated asset value to gauge its true worth. 

The Deutsche Bank building stands tall with its sleek blue-glass facade, framed by bare trees and set against a clear sky

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He emphasized that it’s not merely a colloquial term, but a standard banking procedure aimed at determining the genuine value of assets.

Dissecting the Post-Haircut Numbers

After Deutsche Bank’s adjustments, their data suggested Trump’s net worth to be around $2.365 billion, in contrast to his initial claim of $4.26 billion. 

Donald Trump standing against a dark background, illuminated by a soft light, wearing a navy blue suit with a red tie

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Given Haigh’s explanation of the term “haircut,” this difference in valuation is seen as noteworthy.


The Bank's Perspective on the Figures

Deutsche Bank, having managed a myriad of clients, seemed to have certain reservations about Trump’s initial numbers. 

Tall glass-clad building displaying the Deutsche Bank logo, set against a clear blue sky.

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The precise reasons for these reservations remain unspecified. Some postulate legal concerns surrounding Trump as a potential factor, while others speculate different motivations.


The Paper Trail

Official documents from Deutsche Bank clearly displayed Trump’s pronounced net worth claim. 

Close-up view of stacked piles of papers and folders in various colors, showcasing the volume of documentation

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Notably, these documents also featured an “adjusted” column, highlighting the bank’s calculated approach to Trump’s figures and hinting at a level of skepticism regarding his initial claims.


Attorney General's Report on the "Haircut"

The Attorney General’s report underlined the importance of Deutsche Bank’s recalculations. They contended that the adjusted number was instrumental in deciding “whether to extend or maintain credit” from the bank’s viewpoint. 

Close-up of Attorney General Merrick Garland, wearing glasses and looking to the side, with a blurred painting in the background

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Such adjustments, therefore, are not just about figures but also about credibility and financial reliability.


Understanding the Role of Loans in Trump’s Empire

The loans obtained by Trump played a crucial part in molding his business empire.

Donald Trump in a navy blue suit and white shirt, standing outdoors with blurred figures and surroundings

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His capacity to secure significant amounts, such as the $125 million for the Trump National Doral Miami golf resort, demonstrated the prominence of these loans in bolstering his business ventures and elevating his stature in the commercial domain.


Highlighting Notable Loan Beneficiaries

Among the loans, the Trump National Doral Miami golf resort was allocated a substantial $125 million, augmenting its opulent allure. 

Landscaped entrance of Trump National Doral with tall palm trees, a worker in an elevated bucket, and a large sign with golden lettering against a manicured lawn

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Furthermore, the Trump International Hotel in Chicago received $107 million, and the historic Old Post Office in Washington, D.C., underwent a revitalization with a $170 million investment.


The Digital Response to the "Trump Haircut"

When the news regarding the “Trump Haircut” emerged online, the internet community actively responded. 

Close-up of a hand holding a smartphone displaying Twitter feed

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While many expressed astonishment and sought clarity on the financial details, a segment found a lighter side, generating humorous comments and memes related to the term.