Donald Trump's family business could face a financial crisis if banks call in loans, a former federal prosecutor explained on CNN on Tuesday.
"The longtime accounting firm for the Trump Organization has now cut ties with the company and announced it can no longer stand behind ten years of financial statements it prepared for the former president's family business," CNN's Bianna Golodryga reported. "The firm advised Trump business partners to no longer rely on the documents."
For analysis, Golodryga interviewed former federal prosecutor Kim Wehle.
"How unusual is this for an accounting firm to cut ties so publicly in the way that it has with the Trump Organization?" Golodryga asked.
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"We can just apply our own logical minds to this kind of issue. Remember, this firm goes back to Fred Trump, Donald Trump's dad. They have a long-standing relationship and the firm itself, as we know, just in being engaged in any type of business transaction, this is not a good look for the firm," Wehle said. "The firm is coming out and saying, 'We made some mistakes, we can't stand behind it,' so this puts into potential jeopardy its own reputation and other relationships it has both with banks and with clients."
She explained that, "it's a super big deal for the firm and of course, for Donald Trump, because this information could give rise to banks calling their loans, saying, 'Listen, we gave you money in reliance on information that now turns out by your own accounting firm to be inaccurate.'"
"That's separate from the potential legal liability from New York," Wehle added.
Watch.
Kim Wehle www.youtube.com
