Former President Trump’s net worth plummeted $700 million while he was in office, falling from $3 billion to $2.3 billion according to an analysis done by Bloomberg News.
Factors that contributed to the losses include an aging portfolio, the pandemic, and the harm done to Trump’s brand due to the Jan. 6 Capitol riot. Attacks from the left against Trump have also taken their toll on his business empire.
The hotel, entertainment, and business sectors of the economy have all been hard-hit by the pandemic. Trump has investments in all of those areas. Casinos and tourism have been decimated because of the coronavirus and that has impacted the former president’s bottom line as well. Travel restrictions have heavily contributed to Trump’s business woes.
“The fallout from the Capitol assault has hurt his relationships with brokers and lenders. At least $590 million in loans come due in the next four years, more than half personally guaranteed by Trump, and his scrapyard of failed enterprises has only gotten more crowded,” Bloomberg wrote in their analysis.
Deutsche Bank cut Trump off after the Capitol riot and now refuses to do business with him.
Bloomberg is reporting that Trump’s commercial real estate properties have lost 26% of their value between 2016 and 2021. They are currently valued at approximately $1.7 billion. This sector of Trump’s holdings ostensibly accounts for nearly three-quarters of his wealth.
Trump’s hotels and resorts are said to have taken an even bigger hit. They fell 42% between 2015 and 2021. $330 million in debt was accrued by Trump.
The valuation of other Trump holdings such as entertainment deals, residential buildings, and books have all dropped by over 80% as well. His fleet of planes and golf courses has also taken a hit.
Mar-a-Lago is the only area in his empire that has made money during Trump’s presidency. It raked in $23 million last year as opposed to $22 million in 2015.
Although Bloomberg’s report is very negative in regards to the former president and his wealth, they did note that Trump has bounced back before and is likely to once again.
“A post-pandemic economic recovery could reinflate the value of his properties. He could continue his run of bestsellers, pivot back to television, or start a rival to the social media platforms that have shunned him. Even if things go poorly, he could make the best of losses by using them to slash his tax bills, as he’s done for years,” Bloomberg posited.
Not only has Trump taken a financial hit… the Manhattan district attorney’s office is also investigating his businesses. They finally obtained Trump’s tax returns in February. Now, according to The Wall Street Journal, Manhattan District Attorney Cy Vance Jr. (D) has been doubling down on his investigation into Trump’s Seven Springs Estate. He has been attempting to prove that Trump inflated the property’s value. But the DA has announced he is not running for reelection, so the whole case may be moot at this point.
Former President Trump did not take the usual $400,000 salary allotted to presidents while he was in office. Instead, he had that money donated to areas and causes he deemed worthy. He also stepped away from his business empire to serve as president, leaving it to his sons to take over until his term was concluded.
Although liberals on social media celebrated Trump’s loss, many of his supporters defended him:
that means he didn't use the power of office to make money. (not unlike most politician that usually gets rich once they hold office). [I mean he could but he chose not to — for the service of the people that needs to be done that most politicians are afraid to do]
— Aldwin (@2aldwin) March 17, 2021
Is he the first president to walk away with less money?
— JTrainMF (@JTrainMF) March 17, 2021
and some will think this makes him look bad when really it shows he’s one of only a few politicians who didn’t use their position to enrich themselves
— Ryuko Matoi (@Ryuko00411573) March 17, 2021
Author: Terresa Monroe-Hamilton