Hailey Johnson
During his presidency, Donald Trump waived part of the punishment for five megabanks whose affiliates were convicted and fined for manipulating global interest rates. One of the waivers was granted to Deutsche Bank, which Trump owes at least $130 million and which has been fined for its involvement in a Russian money laundering scheme. In 2021, Deutsche Bank agreed to pay $130 million to avoid a bribery charge, and in 2020, Goldman Sachs incurred a record punishment for foreign bribery under a $3 billion package of accords for its role in Malaysia's plundered 1MDB investment fund. In 2018, Wells Fargo was fined $1 billion in the largest fine levied against a bank under the Trump administration. In 2025, a New York appeals court overturned a $500 million civil fraud penalty imposed on Trump, stating that it violated the U.S. Constitution's Eighth Amendment, which prohibits excessive fines.
| Characteristics | Values |
|---|---|
| Date | January 9, 2018 |
| Fines waived for | Five megabanks, including Deutsche Bank |
| Reason for fines | Manipulating global interest rates |
| Amount waived for Deutsche Bank | Part of at least $130 million owed by Trump and his business empire |
| Other banks mentioned | Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. |
| Amount of fines in settlements | Over $4 billion |
| Trump administration's plan | To hold Wells Fargo to account |
| Fine levied against Wells Fargo | $1 billion |
| Date of fine | 2018 |
| Trump civil fraud fine | Overturned by New York appeals court in August 2025 |
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What You'll Learn
- Trump waived punishment for convicted banks, including Deutsche Bank, which Trump owed millions to
- Deutsche Bank paid $130 million to avoid a bribery charge
- Trump had a longtime personal business association with Deutsche Bank
- Wells Fargo paid $1 billion in fines, the largest fine levied against a bank under Trump
- Trump's half-billion-dollar civil fraud fine was overturned by a New York appeals court
Trump waived punishment for convicted banks, including Deutsche Bank, which Trump owed millions to
In January 2018, the Trump administration waived part of the punishment for five megabanks whose affiliates were convicted and fined for manipulating global interest rates. One of these waivers was granted to Deutsche Bank, which is owed at least $130 million by former US President Donald Trump and his business empire. The exact amount owed by Trump to Deutsche Bank is unclear, with some sources claiming it is likely around $300 million, while others state that Trump and his companies have received at least $2.5 billion in loans from Deutsche Bank and co-lenders since 1998.
Deutsche Bank has faced scrutiny for its involvement in a Russian money laundering scheme, as well as its role in the LIBOR scandal, which led to $9 billion worth of fines from regulators worldwide. The bank has paid $3.5 billion for its part in the scandal, more than any other financial institution involved. The Trump administration's decision to waive punishment for convicted banks, including Deutsche Bank, has raised concerns about a potential conflict of interest.
Trump's financial relationship with Deutsche Bank dates back to the late 1990s when it was the only major Wall Street bank willing to extend him credit after a series of bankruptcies. In 2016, Trump defaulted on a $640 million loan from Deutsche Bank, leading to a legal battle that was eventually settled, and the loan was repaid. Despite this, Deutsche Bank continued to lend to Trump, highlighting the bank's key role as a creditor for the former president's businesses.
The waivers granted by the Trump administration to these banks were issued in a little-noticed announcement during the Christmas holiday week. This timing may have been strategic, as it could have been an attempt to avoid public scrutiny and criticism. The decision to waive the punishment for convicted banks stands in contrast to Trump's campaign promise of holding Wall Street accountable.
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Deutsche Bank paid $130 million to avoid a bribery charge
Deutsche Bank AG, a German multinational financial services company headquartered in Frankfurt, Germany, agreed to pay over $130 million to resolve a Justice Department investigation into violations of the Foreign Corrupt Practices Act (FCPA) and a Securities and Exchange Commission (SEC) probe into a commodities fraud scheme. The charges arose from a scheme to conceal corrupt payments and bribes made to third-party intermediaries, including a client's "decision-maker" in Saudi Arabia and an intermediary for an Abu Dhabi official, by falsely recording them on Deutsche Bank's books and records. The bank also engaged in fraudulent and manipulative commodities trading practices involving publicly traded precious metals futures contracts.
The settlement included a three-year deferred prosecution agreement with the Justice Department and a civil settlement with the SEC. The criminal penalties totaled $85,186,206, with additional amounts of $681,480 in criminal disgorgement, $1,223,738 in victim compensation payments, and $43,329,622 to be paid to the SEC. The deferred prosecution agreement required Deutsche Bank to implement anti-bribery and anti-wrongdoing measures to prevent future financial misconduct.
This case was part of a series of scandals involving Deutsche Bank, including past breaches such as moving suspicious payments for convicted sex offender Jeffrey Epstein and transferring funds for entities sanctioned by the US. Additionally, President Donald Trump and his business empire were reported to owe at least $130 million to Deutsche Bank, which granted a waiver to the bank despite its involvement in a Russian money laundering scheme.
Deutsche Bank's settlement with the Justice Department and the SEC reflected an effort to address financial crimes compliance failures. The bank vowed to strengthen its anti-financial crime compliance program to prevent similar incidents from occurring in the future. The resolution of the case sent a message about the importance of upholding integrity and accountability in the international marketplace.
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Trump had a longtime personal business association with Deutsche Bank
Former US President Donald Trump has had a long-standing personal and business association with Deutsche Bank, which dates back to the late 1990s. At the time, Trump was unable to secure loans from major Wall Street firms due to a series of failed ventures. However, Deutsche Bank stepped in and provided him with a $125 million loan for renovations to his 40 Wall Street property. This marked the beginning of a two-decade-long relationship that has since come under scrutiny.
Trump's association with Deutsche Bank has been described as "complicated" and "unusual." Despite defaulting on a $640 million loan, the bank continued to lend him money, including a $48 million loan from its private wealth unit. In 2012, Deutsche Bank loaned the Trump Organization $125 million as part of the overall $150 million purchase of the Doral golf resort in Miami. The favorable terms of this loan raised questions about the bank's financial risk assessment.
The relationship between Trump and Deutsche Bank has been further entangled by allegations of Russian money laundering. Deutsche Bank has been fined billions of dollars for lax controls on money laundering and violating sanctions. There have been suggestions that the bank sold part of Trump's debt to the Russian bank VEB or other Russian banks under sanctions. These allegations have become a subject of interest for investigators looking into Russian interference in the 2016 presidential election.
In addition to his financial dealings with the bank, Trump has also faced legal consequences for business fraud. In 2024, a judge ordered him to pay approximately $454 million in penalties after finding him liable for overstating the value of real estate assets to boost his net worth. However, this fine was later overturned by a New York appeals court, citing violations of the U.S. Constitution's Eighth Amendment on "excessive fines."
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Wells Fargo paid $1 billion in fines, the largest fine levied against a bank under Trump
In April 2018, Wells Fargo was fined $1 billion in a settlement with two regulators: the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of Currency (OCC). This was the largest fine levied against a bank during Trump's administration. The fine was imposed due to the bank's policies on mortgage interest rates and auto loan insurance, which led to consumer-practice crises.
The $1 billion fine was in addition to the $4.25 billion that Wells Fargo had already set aside for liabilities related to the fake accounts scandal and the mortgage-backed securities issues it faced before the 2008 financial crisis. The scandal involved Wells Fargo creating false records and misusing customers' identities to meet unrealistic sales goals. The bank was forced to pay $3 billion in fines and $110 million in a class-action lawsuit from affected account holders. Furthermore, Wells Fargo paid an additional $1 billion in a class-action lawsuit from its shareholders.
In January 2025, allegations emerged that the Trump administration reduced fines for Wells Fargo executives in exchange for a $1 million donation to Trump's inauguration. The allegations stated that the Electronic Payments Coalition, of which Wells Fargo is a member, donated $1 million to Trump's inauguration with Trump-Vance. In return, two former Wells Fargo executives, David Julian and Paul McLinko, received drastic cuts in their penalties. The original fines were imposed due to their involvement in the fake accounts scandal and unsafe banking practices. While there is no direct evidence of a connection between the donation and the reduced fines, the timing and circumstances have raised questions about potential corruption within the Trump administration and its relationship with the banking industry.
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Trump's half-billion-dollar civil fraud fine was overturned by a New York appeals court
In August 2025, a New York state appeals court overturned a $500 million civil fraud fine imposed on former US President Donald Trump, his company, and other defendants. The lawsuit was filed by New York Attorney General Letitia James, who argued that Trump and the Trump Organization committed business fraud by overstating the value of real estate assets to boost Trump's net worth. This helped the company secure better loan terms and other financial benefits.
The appeals court ruled that the penalty violated the Eighth Amendment of the U.S. Constitution, which prohibits "excessive fines." However, the court upheld non-monetary sanctions on the defendants and affirmed that Trump, his company, and two of his children were liable for fraud. The ruling also limited the ability of Trump and the Trump Organization to conduct business in New York.
The decision was not unanimous, with one judge stating that he would have dismissed the lawsuit outright. In response to the ruling, Eric Trump, the former President's son and one of the defendants, celebrated the outcome on social media, calling it a "total victory."
This case is separate from other instances where banks have faced fines and penalties during Trump's presidency, such as Deutsche Bank, which agreed to pay fines and penalties to avoid a criminal prosecution on bribery charges, and Wells Fargo, which paid a $1 billion fine for issues related to its financial products.
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Frequently asked questions
Yes, the Trump administration waived fines for five megabanks, including Deutsche Bank, whose affiliate was convicted and fined for manipulating global interest rates.
Yes, in August 2025, a New York state appeals court overturned a $500 million civil fraud penalty imposed on Trump, his company, and other defendants.
Wells Fargo was fined $1 billion in 2021, the largest fine against a major bank under the Trump administration.
In November 2020, banks had racked up more than $4 billion in U.S. penalties in a wave of settlements.
