How “Don the Con” Conned the Bank
$2.5 billion is a lot of money even for a self-styled billionaire like the current occupant of the White House. That’s how much he convinced various departments at Deutsche Bank to lend him, according to an NPR Fresh Air interview with David Enrich, New York Times finance editor and author of the forthcoming book, Dark Towers: The Inside Story Of The World’s Most Destructive Bank. The article reveals quite a bit of the psychology of these bankers, as well as of DT himself.
It’s even more remarkable because “Don the Con” is not a good credit risk. Even before the New York Times revealed that he squandered and lost $1.17 billion just in the ten years from 1985-94, the banking industry was well aware of DT’s long history of failing to pay back large loans (and his other habit of failing to pay his subcontractors). Yet, DT burned Deutsche Bank several times. When the sourced documents finally go public, things are going to get VERY interesting.
This is one very good argument against siloed businesses, by the way. If these people had only talked to each other, they’d have been at far less risk for the subsequent loans.
