"It was a Thursday night in late May 1990. I was a 32-year-old Wall Street Journal reporter who had written dozens of articles about Donald J. Trump’s business affairs. I was closing in on the biggest one of all — Mr. Trump was on the brink of financial ruin. He was quietly trying to unload his assets. His Atlantic City casinos were underperforming, and prices for his casino bonds were plummeting, suggesting that he would have trouble making interest payments.
“Donald Trump is driving 100 miles per hour toward a brick wall, and he has no brakes,” the banker told me. “He is meeting with all the banks right now.”
The next day, I called sources at the four banks I knew had large Trump exposures. The first three calls yielded “no comment,” but the fourth hit pay dirt, and I was invited to visit the bank late that afternoon.
Behind a large mahogany desk sat the bank’s chief lending officer. He explained that all of the banks would have to agree to a huge restructuring of Mr. Trump’s loans or Mr. Trump would have to declare personal bankruptcy. Unknown to the banks when each had lent him money, Mr. Trump ended up personally guaranteeing a staggering $830 million of loans, which was reckless of him, but even more so for the banks.
In a front-page Wall Street Journal article on June 4, 1990, I wrote: “Donald J. Trump’s cash shortage has become critical. The developer is now in intense negotiations with his main bank creditors that could force him to give up big chunks of his empire.” One banker said, “He will have to trim the fat; get rid of the boat, the mansions, the helicopter.”
Amid all the self-made myths about Donald Trump, none is more fantastic than Trump the moneymaker, the New York tycoon who has enjoyed a remarkably successful business career. In reality, Mr. Trump was a walking disaster as a businessman for much of his life. This is not just my opinion. Warren Buffett said as much this past week."
Trump, the Bad, Bad Businessman - The New York Times
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