Eric really is that stupid

No. I can just read and understand basic business concepts.

 

Huh?

SFC = Statement of Financial Condition. More commonly referred to as a "balance sheet"

 

So what is the bank supposed to do?

Are they supposed the recreate the Statement of Financial Condition on their own? The company has already created one. Do you know how much time and effort go into creating an SFC? Especially for a company the size of the Trump organization.

In order for our financial system to work banks and investors have to be able to rely on the SFC put out by the company. That is why it is considered fraud if the company lies on the SFC. Trump is the HMFIC at the Trump organization, and as the saying goes "The buck stops here"

 

And banks use it for the exact same reason. When making a decision on a loan the company provides the bank a copy of the SFC. Do you think the bank has the time or resources to investigate every line item on it?

 

You're talking REIT, right?

 

It would seem that accusation belongs in the lap of Eric, Trump and or the corporation, I'm not the topic here..

 

I'd think the institution loaning the money would have questioned the numbers, no? Clearly there was some question of the number that was taxed and the amount loaned

 

No, the Trump organization is not a REIT, what would that have to do with anything?

 

Why question the numbers? It's against the law to lie on an SFC.

 

Basic concept, lmfao

 

When you sell or buy a home do you tell the lender what it's worth, or do you have an independent company appraise it..

 

Well chief your introductory course has bloated your ego into an embarrassing corner.

Tell us, business genius, what kind of due diligence do you suppose a bank does when the requested loan is $20 MILLION?
Lunch and a handshake?

 

Why do the Trump defenders insist on trying to equate the business dealings of the Trump organization as if it was the same as an individual applying for a mortgage?

IT'S NOT THE SAME

It's not even close to being the same. When I apply for a mortgage I have to provide proof of income. For an individual how hard is it for the bank to verify that? How many man hours do you think it would take for me to compile my personal "Statement of Financial Condition"?

Now multiply that by about a zillion and you come close to how much effort it takes for a company the size of the Trump organization to compile a Statement of Financial Condition. Do you really think the bank has the time or resources to check each and every line item on a report that size?

 

Does the property in question meet the criteria below

 

All depends.

What kind of loan is it? Is it a mortgage to purchase a piece of property? Is it a small business loan?

Is the entity applying for the loan required to put out factually correct reports every year on it's financial condition?

 

Same reason you are trying ignore it as a corporation

 

A REIT is not a property

It is a company that manages and finances properties. If you're going to try to talk about financial issues then at least learn what they mean.

 

Exactly, someone was stupid to loan tons of money on the word of the borrower, I find that very questionable

 

I'm not ignoring it as a corporation.

The FACT that it's a corporation working under the laws of the State of NY is the very reason it is required to put out a Statement of Financial Condition.

As an individual you are NOT required to put one out. So when you apply for a loan, as an individual, there is information you need to provide. The information that the Trump org had to provide was it's annual balance sheet. The banks rely on those to get an accurate picture of the financial health of the company. And the reason the bank can rely on it? Because it's fraud if you lie on it. FRAUD

Guess what, Trump is now finding that out.

 

Read it again. Was the loan personal or corporation

 

It happens all the time. That is why it is fraud if you lie on your balance sheet.

For example, if I apply for a mortgage and I tell the bank that I make 1 million a year. I provide pay stubs and bank records verifying that. I have a friend pose as a bank executive to verify the information.

The reality is that I make 20,000 a year. If the bank does it's due diligence and does not uncover my lies, does that mean I'm not guilty of fraud?

 

It was a corporate loan but the Trump organization is not a REIT.

I'm trying to figure out where you're going with this.

 

Really? So Trumps Corp doesn't deal income property?

 

Really

https://www.sec.gov/files/reits.pdf

 

https://www.forbes.com/sites/danale...ident-solved-his-debt-crisis/?sh=3d2d41423970