How do you come to this conclusion when both parties walked away from the deal satisfied? Who's to say that the deal wouldn't have happened at a higher interest rate?
Suppose you were trying to sell a used car for $10,000 but I was only willing to pay $7,500 for it. Suppose we agreed on a price of $8,000 for the car.
Is it your position that your family (your "marketplace) would be mad at you because you "lost" $2,000 when you actually gained $8,000?
What if Trump were to walk away from the deal at the higher interest rate and go to another bank? Wouldn't the owners/stockholders theoretically lose ALL of the interest in this case?
If you held to your $10,000 value on your used car and I walked away from the deal, would your family say that you "lost" $10,000 when you actually lost nothing?
Regarding the bank's interest rate, didn't the banks say that the rate was tiered and it didn't matter what Trump's appraisal was in the sense that the tier was wide enough that the same rate would have applied at a larger or lower valuation of collateral?
-PJ
In addition, I'm no fan of taxes, yet the state lost out on the taxes that could have been generated had the loans been made at the cost that was appropriate for the true value of the assets. As for Trump going to another bank, Deutsche Bank was one of the few banks willing to do business with Trump. But let's say he could, had he presented the same financials cooked up by Betty Crocker he still would have messed with the marketplace. Unless the other banks rates were lower. Of they could have been higher. And that's the marketplace.
I thought there was a reference to tiered rates, but I can’t find it. While I seem to remember something about them, I don’t remember if they said there would be no impact because he would have still fallen into the tier he was assigned or if he would have moved to the next.