Andrew C. McCarthy: “There is no state-law requirement holding that if an asset is valued at X amount, a bank must charge a set interest rate. These are arms-length transactions. The banks made the loans because (a) Trump was a good customer who had a history of paying up; (b) if a bank had proposed a too-high interest rate, Trump could simply have gone to a different bank that would have welcomed the business; and (c) the banks don’t make money if they don’t lend, and they were happy with the tidy profits they consistently made on Trump loans.”
Post from Truth Social
Andrew C. McCarthy: “There is no state-law requirement holding that if an asset is valued at X amount, a bank must charge a set interest rate. These are arms-length transactions. The banks made the loans because (a) Trump was a good customer who had a history of paying up; (b) if a bank had proposed a too-high interest rate, Trump could simply have gone to a different bank that would have welcomed the business; and (c) the banks don’t make money if they don’t lend, and they were happy with the tidy profits they consistently made on Trump loans.”