‘United States House of Representatives ‘Tete Committee on Financial Services Wariner, .€. 20515 November 22, 2016 ‘The Honorable David A. Montoya The Honorable Michael E. Horowitz Inspector General Inspector General Department of Housing and Urban Development Department of Justice 451 7th StsW 950 Pennsylvania Avenue NW, Suite 4760 Washington, D.C. 20410 ‘Washington, D.C. 20530 ‘The Honorable Erie M. Thorson Fred W. Gibson Inspector General ‘Acting inspector General Department of the Treasury Federal Deposit Insurance Corporation 500 Pennsylvania Avenue NW 3501 Fairfax Drive Washington, D.C. 20220 ‘Arlington, VA 22226 ‘The Honorable Laura S. Wertheimer James Hagen Inspector General Inspector General Federal Housing Finance Azency National Credit Union Administration +400 7th Street SW, Suite 3201, 1775 Duke Street, Washington, D.C. 20024 ‘Alexandria, VA 22314 (Carl Hoecker Mark Bialek Inspector General Inspector General Securities and Exchange Cemmission Board of Governors ofthe Federal Reserve System. 100 F Street NE 20th and Constitution Avenue NW Washington, D.C. 20549 ‘Washington, D.C. 20551 Dear Inspectors General: President-elect Donild Trump will begin his term with more potential conflicts of interest and less transparency abouthis personal finances than any president in receat history. The ‘American people have been given litle assurance about how he will manage his extensive ‘network of businesses and financial holdings. ‘Once Donald Trump takes office, he will have incredible influence over a wide range of policies, While federal ethics rules require nearly all goverament employees to recuse themselves from matters that affect their ouside Financial interests, these rules do not apply to Rh atin Donald mp Compe asics Bring Font Conf fers WAL. 18, 2016), io Ten busineoes- ng poenaksonficteo nee. 19221276Page2 Novemiber 22, 2016 the President or Vioe-President* Accordingly, Trump will hve ample opportunity to make and influence poliey decisions hat benefit his personal business and financial interests One area of particular concem stems from Donald Trump's deep, ongoing relationship with Deutsche Bank. ‘Trump has turned to Deutsche repeatedly to finance his realestate investments. Deutsche hasbeen the only major Wall Sect bank to continue to lend to Donald “Trump and his entities inthe wake of six Trump-business bankruptcies.” Over the past two decades, Deutsche has beer a lender or co-lender in atleast $2.5 billion in loans to Donald ‘Tramp orhis companies.’ The businesses within Trump's network currently owe Deutsche Bank nearly $360 million in outsanding principal, including $125 million for his Florida golf course, ‘Tramp National Doral; up © $69 million for his Chicago high-rise, Trump International Hotel ‘and Tower; and a $170 millon line of credit used to fund the development of his new hotel in Washington, DC, the Trump Intemational Hotel in Washington.? Deutsche Bank has been the subject of multiple federal agency investigations in revent ‘years, including one that resulted in a $1,925 billion setlement with the Federal Housing Finance ‘Agency over claims that the bank defrauded two U.S, government-controlled companies in the sale of mortgage-backed securities® and another that concluded with a $1,575 billion settlement with the Department of Jusice and the Commodities Futures Trading Commission for the bank’s| alleged manipulation of beachmask interest rates.” Currently, Deutsche Bank is engaged in ‘settlement discussions withthe U.S. Department of Justice, which is seeking $14 billion dollars in fines from the bank for its role in the toxic mortgage crisis. This settlement could endanger Deutsche Bank's financial health, which could strain the bank's ability to lend future capital to ‘Trump's realestate projects and, thus, threaten his business interests." As President, Donald “Trump will be granted influence over the outcome of Deutsche Bank's settlement negotiations ‘withthe Justice Departmen’ through his ability to appoint and direct the Attorney General, which will give him the opportunity to advance his business interests at the expense ofthe best outcome for the American people Another major concer is Present-clect Trump's unwillingness to take the traditional ‘measures to mitigate potential conflicts of interest. Most recent presidents, including Presidents Ronald Reagan, George H. W. Bush, Bill Clinton, and George W. Bush, put their assets into a ‘lind trast during their ters in office. Thus far, Trump has failed to take any action to address FiwuSc.s208 » Drew Hamel, Pumps unusual confic Mion in debe to German bak now facing fara fles, WASH POST (Sop 30, 2016), bute snaonnoscem ness wonky 31809 30 pe aaah ‘nilonsin-debts-lngernan-bancaowfsting-fofe fines Ha Sta * Soe News Release, FHFA Announces $1.9 Billo Setlement With Detsche Bank (Dee. 20,2013, nips sg Medi Publi PagesFHA-Annovncss-SL.9 Billion Stem: With Deutsche Bankasps "Karna Bishop, Deuce Bank wih 82 5B ie deo rte ging, CNBC (Apr. 23, 2015, Intl cb con/201S1042¥y-dutcbaskopaSb-fng-fresome-emplosts-foe-ate- ‘manipulation hn Hall supra ote.Page 3 ‘November 22, 2016 his financial conflicts ofimteest. While he has stated that he intends to use a “blind trast” to sequester himself from his business concer, he as also stated that he wil place his children in charge of managing this tr.” This arrangement fails to meet the standard ofa conventional blind trust, which is typically managed by an independent third party, rather than by immediate family members over whom Trump has ready access and inluence. Donald Trump’s bind trust ‘would be neither blind nor tustworthy, Further, Donald Trump has destroyed any notion that his children would be able to eTectively segregate the Trump business interest from his politcal interests when he announced that his children would also serve on the executive committe of his presidential transition team" President-elect Trump’s questionable ethical principles may influence who he appoints to lead our federal agencies and, ultimately, influence the culture within these federal agencies. As result, the work that you perform will come especially integral to upholding the ethical standards ofthe Executive branch. In light ofthese unprecedented circumstances, we ask that {you take immediate and proactive steps to ensure that any new political appointees at your respective agencies are held to the highest possible ethical standards and that you commit to diligently and constantly monitoring the actions of such appointees and mitigating conlits of interest when they inevitably arse. We further ask that you continue to be vigilant in holding your agencies accountable to the American public and ensuring that waste, fraud and abuse is ‘eradicated. Thank you forthe excellent work you do, especially inthis time of unprecedented change and challenge. Sincerely, Ranking Member ‘Committee on Financial Services Subcommittee on Capital Markets, and ‘Government Sponsored Enterprises re Hon 1¢ Honorable Emanuel Cleaver Ranking Member Ranking Member ‘Subcommittee on Financial Insittions Subcommittoo on Housing and Insurance ‘and Consumer Cred Ben Brody, Trump Says Kis Wil Help Ran His Company Ife Wins Election, BLOOMBERG (Set. 1S. 2016) nip Moonie con/plie/ew’901609-1 Sin Llp ruhiecompa Phew seston. Ick MASKELL CONG, RESEARCH SERV, RS216S6, THESE OF BLIND THUSTS BY FEDERAL OFFICIALS (205) "Cit Alleg, Tree Trump cron acen managing presidente company, REUTERS (Nov. 11 2018), Ins sees com ai ein-saeleton un oranaion-MUSKBNL3E29WPage 4 November 22, 2016 1¢ Honofaefe Given Moore ‘The Honorable'Al Green Ranking Member Ranking Member ‘Subcommittee on Monetary Policy Subcommittee on Oversight and and Trade Investigations ‘The Honorable Jeb Hensaling, Chairman, Committee on Financial Services ‘The Honorable Scott Garret, Chairman, Subcommittee on Capital Markets, and Government Sponsored Enterprises ‘The Honorable Randy Neugebauer, Chairman, Subcommittee on Financial Institutions and ‘Consumer Credit ‘The Honorable Blaine Luetkemeyer, Chaitman, Subcommittee on Housing and Insurance ‘The Honorable Bill Huizenga, Chairman, Subcommittee on Monetary Policy and Trade ‘The Honorable Sean Dufly, Chairman, Subcommittee on Oversight and Investigations