Much of the deliberations on that June 1991 conference call concerned the fear of being stuck in bankruptcy court for years if they pushed Trump out. At one point, the creditors talked about paying Trump more than $1 million in an annual management fee even though they thought he had done a “terrible” job managing the casinos.
Many executives who oversaw financial companies that drove us into the Great Recession left or resigned — but had earned obscene bonuses, stock options, and years of multimillion-dollar paychecks. Lehman Brothers collapsed in 2008, yet its former chief executive Dick Fuld earned an estimated $34.38 million a year before the company filed for bankruptcy.
“What is fundamentally unfair about the collapse of Lehman is its impact on the economy and taxpayers,” Waxman said. “Mr. Fuld will do fine. He can walk away from Lehman a wealthy man who earned over $500 million, but taxpayers are left with a $700 billion bill to rescue Wall Street and an economy in crisis.”
The lawsuit claims that Trump, three of his children (Donald Trump, Jr., Ivanka Trump, and Eric Trump), and senior executives at the Trump Organization, armed with super hyped-up appraisals of various New York properties, got banks to lend money on more favorable terms than would otherwise have been available to the company.
I’ve often heard various versions of a comedy bit that says if you owe the bank $10,000, you don’t sleep. But if you owe the bank $10 million, the banker doesn’t sleep. The dollar amounts change depending on who tells the joke, but the underlying sentiment is that uber-rich people frequently get favorable treatment when they falter financially.
“For too long, powerful, wealthy people in this country have operated as if the rules do not apply to them,” James said in a statement. “Donald Trump stands out as among the most egregious examples of this misconduct.”
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