Category Archives: Issues

U.S. investigators seek to turn Manafort in Russia probe

Reuters reports: U.S. investigators examining money laundering accusations against President Donald Trump’s former campaign manager Paul Manafort hope to push him to cooperate with their probe into possible collusion between Trump’s campaign and Russia, two sources with direct knowledge of the investigation said.

Special Counsel Robert Mueller’s team is examining Manafort’s financial and real estate records in New York as well as his involvement in Ukrainian politics, the officials said.

Between 2006 and 2013, Manafort bought three New York properties, including one in Trump Tower in Manhattan. He paid for them in full and later took out mortgages against them. A former senior U.S. law enforcement official said that tactic is often used as a means to hide the origin of funds gained illegally. Reuters has no independent evidence that Manafort did this.

The sources also did not say whether Mueller has uncovered any evidence to charge Manafort with money laundering, but they said doing so is seen by investigators as critical in getting his full cooperation in their investigation. [Continue reading…]

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Trump assigns White House team to target Iran nuclear deal, sidelining State Department

Foreign Policy reports: After a contentious meeting with Secretary of State Rex Tillerson this week, President Donald Trump instructed a group of trusted White House staffers to make the potential case for withholding certification of Iran at the next 90-day review of the nuclear deal. The goal was to give Trump what he felt the State Department had failed to do: the option to declare that Tehran was not in compliance with the contentious agreement.

“The president assigned White House staffers with the task of preparing for the possibility of decertification for the 90-day review period that ends in October — a task he had previously given to Secretary Tillerson and the State Department,” a source close to the White House told Foreign Policy.

The agreement, negotiated between Iran and world powers, placed strict limits on Tehran’s nuclear program in return for lifting an array of economic sanctions.

On Tuesday, Trump relayed this new assignment to a group of White House staffers now tasked with making sure there will not be a repeat at the next 90-day review. “This is the president telling the White House that he wants to be in a place to decertify 90 days from now and it’s their job to put him there,” the source said. [Continue reading…]

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How climate change denial threatens national security

Wired reports: In a cramped meeting room Wednesday on Capitol Hill, House Democrats hosted a roundtable to discuss climate change with several national security experts. In attendance were two former admirals, a retired general, a once-ambassador to Nigeria, and the former undersecretary to the Secretary of Defense.

Over several hours of questioning, they described how climate change would escalate instability across the globe and make it harder for the US military to conduct its operations. Nothing they said, however, was all that new. In fact, the Department of Defense has known about, and sometimes planned for, the security threats created by climate change for well over a decade. Congressional Democrats—minority members of the House Science Committee—called the roundtable as a plea to the Republican-led Congress to stop standing in the way of the military’s preparations for the heightened dangers of a warming world.

One of the key phrases here is “threat multiplier.” Coined about a decade ago by panelist Sherri Goodman, a former Deputy Under Secretary of Defense, it means climate change will raise the stakes for existing conflicts, and push unstable communities toward catastrophe. Case study: the Syrian Civil War, rise of ISIS, and Syrian refugee crisis began in part because of a climate change-linked drought that began in 2006. “Droughts affected the Syrian harvests, compounded by historically poor governance and water management,” says Marcus King, a professor of international affairs at George Washington University. This caused migrations of farmers into the cities, where they had neither jobs nor food. The violent protests for both became rallying cry against repressive president Bashar Assad. The protests became riots, then insurgency, and eventually full-blown chaos.

The threat multiplier paradigm is appearing in other places. Guatemala already has problems with food security, and many regions are still left ungoverned after that country’s not-so-distant civil war. Rising seas are bringing saltwater incursion to Egypt’s Nile Delta, adding food insecurity to that country’s already tense political situation. And in Nigeria’s capital city of Lagos, nearly half of the 22 million residents live below sea level and will eventually have to relocate—unlikely to be easy or conflict-free. “This isn’t a political issue for the defense community,” says Ann Phillips, a retired admiral and an advisor for the Center for Climate and Security. “We in this community are pragmatic and mission-focused.” [Continue reading…]

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Swedish Nazis trained in Russia before bombing a center for asylum seekers

BuzzFeed reports: By the time Anna Ahlberg arrived at the shelter, the only evidence that remained of the blast was a pool of blood that had melted through the snow in the parking lot.

The makeshift shelter was a rundown concrete motel on a lonely road off the highway running into Gothenburg, Sweden’s second-largest city. It housed people who had come to Sweden seeking asylum, but had been ordered to leave the country. Ahlberg, the director of the local migration agency, rushed to the scene about an hour after the explosion went off on the afternoon of January 5. By the time she arrived, the only person injured had been taken away in an ambulance. He was a janitor who’d been peppered with shrapnel and had both legs broken in the blast.

Ahlberg spent a long hour sitting in the back of a police car waiting for a bomb squad to clear the building before they’d allow her inside to reassure the roughly 60 asylum seekers on lockdown. She clung to the hope that the explosion was caused by a firework, or by a propane canister that one of the residents had been using to fuel a camp stove in their room.

“I didn’t want to think that it was meant to harm any person, that it was just an accident or bad luck,” Ahlberg told BuzzFeed News during an interview in Gothenburg in March.

But Ahlberg’s worst fears were confirmed a week later when investigators revealed that the people behind the blast were members of Sweden’s largest Nazi organization, the Nordic Resistance Movement.

They had found DNA samples on fragments of a bomb and the bicycle it had been strapped to that matched a 23-year-old named Viktor Melin. Melin was the leader of the group’s Gothenburg cell, and prosecutors ultimately brought charges against him and two other members, 20-year-old Anton Thulin and 50-year-old Jimmy Jonasson. The explosive matched devices used in two other attacks that winter: one that exploded in November outside the gathering spot of a left-wing organization without injuring anyone, and another that was discovered before it could go off at a residence for refugees in late January.

This was not the first time Ahlberg had seen one of her facilities vandalized. Two others in her jurisdiction had been damaged just before they were due to open in 2015. Scores of facilities were torched that year, part of the backlash that met the 160,000 asylum seekers who came to Sweden at the height of the EU refugee crisis. But the incident in the parking lot was the first time Ahlberg had heard of a bombing — and someone was nearly killed.

As the case headed to trial six months later, prosecutors dropped a bombshell. The perpetrators weren’t simply inspired by events at home, according to court filings reviewed by BuzzFeed News. Prosecutors presented evidence that two of the men had traveled to Russia, where they trained with paramilitaries who had fought alongside Russian separatists in Eastern Ukraine.

The evidence prosecutors laid out to the judge could have far-reaching consequences throughout Europe. They showed how a largely forgotten war hundreds of miles away that has claimed thousands of lives had emboldened fringe nationalists deep inside the EU and built networks into Russia.

Security analysts worry that the Ukraine conflict fueled a transformation of right-wing extremist groups across the West. [Continue reading…]

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This is why Polish people are protesting to defend their democracy

BuzzFeed reports: Tens of thousands of Poles took to the streets on Thursday to protest a law that subordinates the country’s Supreme Court to Poland’s nationalist ruling party. An estimated 50,000 people came out to protest the law in the capital Warsaw alone, with tens of thousands more joining in other cities and smaller towns across the country.

Despite growing protests at home and warnings from the EU, the lower house of the Polish parliament passed a bill strengthening the grip of the ruling Law and Justice party (PiS) over the judiciary. Under the new law, all current judges on the Supreme Court will be dismissed and the justice minister will appoint new ones.

The bill still has to be passed by the upper house of the Polish parliament, the Senate, and signed into effect by Polish President Andrzej Duda.

In a last desperate attempt to block what they see as the end of democracy in the country, the opposition called on protesters to gather outside the presidential palace in Warsaw demanding that Duda veto the law. Poles also brought candles to local courthouses and chanted “Free Courts!” across the country. [Continue reading…]

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Sessions discussed Trump campaign-related matters with Russian ambassador, U.S. intelligence intercepts show

The Washington Post reports: Russia’s ambassador to Washington told his superiors in Moscow that he discussed campaign-related matters, including policy issues important to Moscow, with Jeff Sessions during the 2016 presidential race, contrary to public assertions by the embattled attorney general, according to current and former U.S. officials.

Ambassador Sergey Kislyak’s accounts of two conversations with Sessions — then a top foreign policy adviser to Republican candidate Donald Trump — were intercepted by U.S. spy agencies, which monitor the communications of senior Russian officials both in the United States and in Russia. Sessions initially failed to disclose his contacts with Kislyak and then said that the meetings were not about the Trump campaign.

One U.S. official said that Sessions — who testified that he has no recollection of an April encounter — has provided “misleading” statements that are “contradicted by other evidence.” A former official said that the intelligence indicates that Sessions and Kislyak had “substantive” discussions on matters including Trump’s positions on Russia-related issues and prospects for U.S.-Russia relations in a Trump administration.

Sessions has said repeatedly that he never discussed campaign-related issues with Russian officials and that it was only in his capacity as a U.S. senator that he met with Kislyak.

“I never had meetings with Russian operatives or Russian intermediaries about the Trump campaign,” Sessions said in March when he announced that he would recuse himself from matters relating to the FBI probe of Russian interference in the election and any connections to the Trump campaign.

Current and former U.S. officials said that assertion is at odds with Kislyak’s accounts of conversations during two encounters over the course of the campaign, one in April ahead of Trump’s first major foreign policy speech and another in July on the sidelines of the Republican National Convention.

The apparent discrepancy could pose new problems for Sessions at a time when his position in the administration appears increasingly tenuous. [Continue reading…]

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Putin’s hackers now under attack — from Microsoft

The Daily Beast reports: A new offensive by Microsoft has been making inroads against the Russian government hackers behind last year’s election meddling, identifying over 120 new targets of the Kremlin’s cyber spying, and control-alt-deleting segments of Putin’s hacking apparatus.

How are they doing it? It turns out Microsoft has something even more formidable than Moscow’s malware: Lawyers.

Last year attorneys for the software maker quietly sued the hacker group known as Fancy Bear in a federal court outside Washington DC, accusing it of computer intrusion, cybersquatting, and infringing on Microsoft’s trademarks. The action, though, is not about dragging the hackers into court. The lawsuit is a tool for Microsoft to target what it calls “the most vulnerable point” in Fancy Bear’s espionage operations: the command-and-control servers the hackers use to covertly direct malware on victim computers. These servers can be thought of as the spymasters in Russia’s cyber espionage, waiting patiently for contact from their malware agents in the field, then issuing encrypted instructions and accepting stolen documents. [Continue reading…]

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Trump’s lawyers and aides look for ways to undermine the Mueller investigation

The New York Times reports: President Trump’s lawyers and aides are scouring the professional and political backgrounds of investigators hired by the special counsel Robert S. Mueller III, looking for conflicts of interest they could use to discredit the investigation — or even build a case to fire Mr. Mueller or get some members of his team recused, according to three people with knowledge of the research effort.

The search for potential conflicts is wide-ranging. It includes scrutinizing donations to Democratic candidates, investigators’ past clients and Mr. Mueller’s relationship with James B. Comey, whose firing as F.B.I. director is part of the special counsel’s investigation.

The effort to investigate the investigators is another sign of a looming showdown between Mr. Trump and Mr. Mueller, who has assembled a team of high-powered prosecutors and agents to examine whether any of Mr. Trump’s advisers aided Russia’s campaign to disrupt last year’s presidential election.

Some of the investigators have vast experience prosecuting financial malfeasance, and the prospect that Mr. Mueller’s inquiry could evolve into an expansive examination of Mr. Trump’s financial history has stoked fears among the president’s aides. Both Mr. Trump and his aides have said publicly they are watching closely to ensure Mr. Mueller’s investigation remains narrowly focused on last year’s election.

During an interview with The New York Times on Wednesday, Mr. Trump said he was aware that members of Mr. Mueller’s team had potential conflicts of interest and would make the information available “at some point.” [Continue reading…]

Politico reports: The spokesman for President Donald Trump’s legal team has resigned within two months of being on the job, according to people familiar with the matter.

Mark Corallo, the spokesman, had grown frustrated with the operation and the warring factions and lawyers, these people said. Corallo also was concerned about whether he was being told the truth about various matters, one of these people said.

Corallo has been close to special counsel Robert Mueller, who is leading the Russia investigation, and has praised him publicly. He didn’t like the strategy to attack his credibility, one person who spoke to him said. [Continue reading…]

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Bannon and Kushner want to outsource Afghanistan to mercenaries

Mark Perry writes: On July 10, the New York Times revealed that the Trump White House had recruited Erik Prince, the founder of the notorious private security firm Blackwater, and wealthy Trump backer Steve Feinberg, the owner of the high-profile military contractor DynCorp International, to “devise alternatives to the Pentagon’s plan to send thousands of additional troops to Afghanistan.” The story suggested that the president and his top advisers were dissatisfied with the military’s thinking on the conflict, the subject of an intense series of a consultations between senior military officers and Trump’s national security team over the last several months.

While the recruitment of Prince and Feinberg, who are close friends, was intended to provide new options for winning the 16-year war, the administration has been hesitant to describe their role. Both men are controversial for their advocacy of the U.S. government contracting out the Afghan conflict to a private company that would build Afghan state capacity, provide logistical support to the Afghan army, and battle the Taliban. At the very least, the new arrangement would mean a lighter footprint for the U.S. military (or perhaps none at all); at the most it would mean that corporate America, and not the U.S. government, would be responsible for running an overseas war—a kind of “War Inc.”

“Dyncorp has its hands all over Afghanistan anyway, and I mean they’re just everywhere,” a high-level former intelligence officer who is privy to the administration’s thinking told me, “so [senior White House adviser Steve] Bannon and crew figure, ‘What the hell, let’s just turn the whole country over to them.’”

But the proposal has shocked the handful of senior Pentagon and CIA officials familiar with it, who point out the difficulty the United States has had in controlling private armies—and those who run them. This was particularly true of Blackwater, whose contractors gave the U.S. military fits in Iraq’s Anbar Province in the aftermath of Operation Iraqi Freedom, where both national security adviser H.R. McMaster and Defense Secretary James Mattis served in key command positions. Senior military officers blame Blackwater for destabilizing Fallujah in 2004 (forcing Mattis to send his Marines into the city in “Operation Vigilant Resolve”) and for the deaths of 20 Iraqi civilians in Baghdad (the “Nisour Square Massacre”) in 2007. [Continue reading…]

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Trump’s fury erodes his relationship with Sessions, an early ally

The New York Times reports: President Trump’s staff is used to his complaints about Attorney General Jeff Sessions, but the Republican senators who attended a White House dinner on Monday were stunned to hear him criticize the man who was once Mr. Trump’s most loyal supporter in the Senate.

It turned out to be a preview of even more cutting remarks Mr. Trump would make two days later in an interview with The New York Times: an extraordinary public expression of dissatisfaction with one of his top aides based on Mr. Sessions’s decision in March to recuse himself from the expanding federal investigation into whether the Trump campaign colluded with Russia.

Despite Mr. Trump’s avowal in the interview that he would not have picked Mr. Sessions if he had known he would recuse himself, Mr. Sessions said on Thursday that he intended to serve “as long as that is appropriate.” And a spokeswoman for Mr. Trump, Sarah Huckabee Sanders, tried to moderate her boss’s remarks, telling reporters later, “Clearly, he has confidence in him, or he would not be the attorney general.”

But even if Mr. Sessions remains in his job, the relationship between him and Mr. Trump — the Alabama lawyer and the Queens real estate developer, an odd couple bound by a shared conviction that illegal immigration is destroying America — is unlikely to ever be the same, according to a half-dozen people close to Mr. Trump. And this is not the typical Trump administration feud. [Continue reading…]

David Graham writes: [Trump] expects absolute personal loyalty from his aides, but aides cannot expect that the president will return the favor. Perhaps no humiliation is as great as Sessions—the long-time backer thrown to the wolves in an interview with the press—but Trump has repeatedly undercut other top aides.

For example, Trump has repeatedly made public statements at odds with Secretary of State Rex Tillerson’s effort to broker a resolution between Qatar and several other Gulf States.

When Trump fired Comey, the administration initially claimed that he had been fired for his handling of the investigation into Hillary Clinton’s emails. Comey’s approach had been widely criticized as improperly harsh, but Trump had said it was unduly easy, making the excuse nonsensical. Nonetheless, Vice President Pence went out and publicly insisted that Comey was fired because the Justice Department had recommended it in light of the Clinton case. The following day, Trump told Holt that actually he’d decided to fire Comey on his own, because of the Russia case.

After meeting with Putin at the G20, the U.S. and Russia announced the creation of a joint cybersecurity task force. Given Russian interference in the election, the idea was widely mocked—like partnering with Bashar al-Assad to stop chemical weapons, quipped Senator Marco Rubio. Treasury Secretary Steven Mnuchin nonetheless played the good soldier, appearing on ABC’s This Week to defend the idea. That evening, Trump torpedoed the joint push with a tweet.

Trump’s willingness to humiliate his aides seems to connected to the same lack of interest in principle that animates his fury at the ones he believes have betrayed them. Just as he sees no excuse for prioritizing rule of law, longstanding alliances, or treasured norms over personal loyalty to him, his policy positions seem to be grounded not in ideology but in a simple calculus: What’s best for Donald J. Trump? [Continue reading…]

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Mueller investigating possible money laundering by Paul Manafort

The Wall Street Journal reports: Special Counsel Robert Mueller is investigating possible money laundering by Paul Manafort, Donald Trump’s former campaign manager, as part of his criminal investigation into what U.S. intelligence agencies say was a Kremlin-backed campaign to meddle in the 2016 presidential election, according to a person familiar with the matter.

The inquiry into the issue by Mr. Mueller, a former director of the Federal Bureau of Investigation, and his team began several weeks ago, this person said. A spokesman for Mr. Manafort, Jason Maloni, declined to comment, as did a spokesman for Mr. Mueller. [Continue reading…]

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Mueller expands probe to Trump business transactions

Bloomberg reports: The U.S. special counsel investigating possible ties between the Donald Trump campaign and Russia in last year’s election is examining a broad range of transactions involving Trump’s businesses as well as those of his associates, according to a person familiar with the probe.

FBI investigators and others are looking at Russian purchases of apartments in Trump buildings, Trump’s involvement in a controversial SoHo development in New York with Russian associates, the 2013 Miss Universe pageant in Moscow and Trump’s sale of a Florida mansion to a Russian oligarch in 2008, the person said.

The investigation also has absorbed a money-laundering probe begun by federal prosecutors in New York into Trump’s former campaign chairman Paul Manafort.

John Dowd, one of Trump’s lawyers, said on Thursday that he was unaware of the inquiry into Trump’s businesses by the two-months-old investigation and considered it beyond the scope of what Special Counsel Robert Mueller should be examining.

“Those transactions are in my view well beyond the mandate of the Special counsel; are unrelated to the election of 2016 or any alleged collusion between the Trump campaign and Russia and most importantly, are well beyond any Statute of Limitation imposed by the United States Code,” he wrote in an email. [Continue reading…]

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Exxon sues U.S. over fine levied for Russia deal under Tillerson

Reuters reports: Exxon Mobil Corp sued the U.S. government on Thursday, blasting as “unlawful” and “capricious” a $2 million fine levied against it for a three-year-old oil joint venture with Russia’s Rosneft.

The U.S. Treasury Department on Thursday morning slapped the world’s largest publicly traded oil producer with the fine for “reckless disregard” of U.S. sanctions in dealings with Russia in 2014 when Secretary of State Rex Tillerson was Exxon’s chief executive.

The lawsuit and the Treasury’s unusually detailed statement on Exxon’s conduct represented an extraordinary confrontation between a major American company and the U.S. government, made all the more striking because Exxon’s former CEO is now in President Donald Trump’s Cabinet.

Exxon took the government to court despite the fact that the fine, the maximum allowed, would have a minor impact on the company, which made $7.84 billion in profit last year.

The fine came after a U.S. review of deals Exxon signed with Rosneft, Russia’s largest oil producer, weeks after Washington imposed sanctions on Moscow for annexing Ukraine’s Crimea region. [Continue reading…]

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Is the nuclear deal with Iran slipping away?

Robin Wright writes: On Monday, the White House hastily organized a press teleconference on the Iranian nuclear deal. The accord—brokered by the world’s six major powers two years ago—is to President Trump’s foreign policy what Obamacare is to his domestic policy: he is determined to destroy it, without a coherent or viable strategy, so far, to replace it. It’s also not clear that Trump fully understands its details, complex diplomatic process, or long-term stakes any more than he does health care.

During the White House briefing, I asked the three senior Administration officials whether, after months of inflammatory declarations about the “bad deal” and the “bad” government in Tehran, the Trump Administration is moving toward a policy of regime change. It often sounds like it. Secretary of State Rex Tillerson told Congress in June that U.S. policy includes “support of those elements inside Iran that would lead to a peaceful transition of that government.” Last month, the Defense Secretary, James Mattis, described Iran as “a country that is acting more like a revolutionary cause, not to the best interests of their own people,” and added, “until the Iranian people can get rid of this theocracy.” Shortly after Trump’s Inauguration, a memo circulated by hawks within the Administration suggested that Iran was susceptible to “coerced democratization,” a euphemism for regime change. Authored by Mark Dubowitz, of the Foundation for Defense of Democracies, the memo argued that “the very structure of the regime invites instability, crisis and possibly collapse,” and urged the White House to work against the reëlection this year of President Hassan Rouhani, the chief sponsor of the nuclear deal on the Iranian side. [Continue reading…]

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The U.S. is not ready to clean up an arctic oil spill, warns Coast Guard

ClimateWire reports: The United States is not ready to clean up an oil spill in the Arctic, the head of the Coast Guard said yesterday.

The warning comes as Congress prepares to open up more drilling in a region quickly being transformed by climate change.

Adm. Paul Zukunft said that the challenges of cleaning up the BP PLC Deepwater Horizon oil spill in 2010 in the Gulf of Mexico—where the conditions were much more favorable—show the extreme difficulty of Arctic oil spill recovery.

“We saw during Deepwater Horizon, whenever the seas are over 4 feet, our ability to mechanically remove oil was virtually impossible,” he said at a Washington symposium yesterday hosted by the U.S. Arctic Research Commission. “Four-foot seas up there [in the Arctic] would probably be a pretty darned good day, so certainly environmental conditions weigh heavily in addition to just the remoteness.” [Continue reading…]

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Interior Dept. ordered Glacier park chief, other climate expert pulled from Zuckerberg tour

The Washington Post reports: Facebook chief executive Mark Zuckerberg flew to Glacier National Park on Saturday to tour the melting ice fields that have become the poster child for climate change’s effects on Montana’s northern Rockies.

But days before the tech tycoon’s visit, the Trump administration abruptly removed two of the park’s top climate experts from a delegation scheduled to show him around, telling a research ecologist and the park superintendent that they were no longer going to participate in the tour.

The decision to micromanage Zuckerberg’s stop in Montana from 2,232 miles east in Washington, made by top officials at the Interior Department, the National Park Service’s parent agency, was highly unusual — even for a celebrity visit.

It capped days of internal discussions — including conference calls and multiple emails — among top Interior Department and Park Service officials about how much the park should roll out the welcome mat for Zuckerberg, who with the broader tech community in Silicon Valley has positioned himself as a vocal critic of President Trump, particularly of his withdrawal from the Paris climate accord. [Continue reading…]

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Manafort was in debt to pro-Russia interests, Cyprus records show

The New York Times reports: Financial records filed last year in the secretive tax haven of Cyprus, where Paul J. Manafort kept bank accounts during his years working in Ukraine and investing with a Russian oligarch, indicate that he had been in debt to pro-Russia interests by as much as $17 million before he joined Donald J. Trump’s presidential campaign in March 2016.

The money appears to have been owed by shell companies connected to Mr. Manafort’s business activities in Ukraine when he worked as a consultant to the pro-Russia Party of Regions. The Cyprus documents obtained by The New York Times include audited financial statements for the companies, which were part of a complex web of more than a dozen entities that transferred millions of dollars among them in the form of loans, payments and fees.

The records, which include details for numerous loans, were certified as accurate by an accounting firm as of December 2015, several months before Mr. Manafort joined the Trump campaign, and were filed with Cyprus government authorities in 2016. The notion of indebtedness on the part of Mr. Manafort also aligns with assertions made in a court complaint filed in Virginia in 2015 by the Russian oligarch, Oleg V. Deripaska, who claimed Mr. Manafort and his partners owed him $19 million related to a failed investment in a Ukrainian cable television business.

After The Times shared some of the documents with representatives of Mr. Manafort, a spokesman, Jason Maloni, did not address whether the debts might have existed at one time. But he maintained that the Cyprus records were “stale and do not purport to reflect any current financial arrangements.”

“Manafort is not indebted to Mr. Deripaska or the Party of Regions, nor was he at the time he began working for the Trump campaign,” Mr. Maloni said. “The broader point, which Mr. Manafort has maintained from the beginning, is that he did not collude with the Russian government to influence the 2016 election.” (Mr. Manafort resigned as campaign manager last August amid questions about his past work in Ukraine.)

Still, the Cyprus documents offer the most detailed view yet into the murky financial world inhabited by Mr. Manafort in the years before he joined the Trump campaign. [Continue reading…]

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Deutsche Bank, key to Trump’s finances, faces new scrutiny

The New York Times reports: During the presidential campaign, Donald J. Trump pointed to his relationship with Deutsche Bank to counter reports that big banks were skeptical of doing business with him.

After a string of bankruptcies in his casino and hotel businesses in the 1990s, Mr. Trump became somewhat of an outsider on Wall Street, leaving the giant German bank among the few major financial institutions willing to lend him money.

Now that two-decades-long relationship is coming under scrutiny.

Banking regulators are reviewing hundreds of millions of dollars in loans made to Mr. Trump’s businesses through Deutsche Bank’s private wealth management unit, which caters to an ultrarich clientele, according to three people briefed on the review who were not authorized to speak publicly. The regulators want to know if the loans might expose the bank to heightened risks.

Separately, Deutsche Bank has been in contact with federal investigators about the Trump accounts, according to two people briefed on the matter. And the bank is expecting to eventually have to provide information to Robert S. Mueller III, the special counsel overseeing the federal investigation into the Trump campaign’s ties to Russia.

It was not clear what information the bank might ultimately provide. Generally, the bank is seen as central to understanding Mr. Trump’s finances since it is the only major financial institution that continues to conduct sizable business with him. Deutsche Bank has also lent money to Jared Kushner, the president’s son-in-law and senior adviser, and to his family real estate business.

Although Deutsche Bank recently landed in legal trouble for laundering money for Russian entities — paying more than $600 million in penalties to New York and British regulators — there is no indication of a Russian connection to Mr. Trump’s loans or accounts at Deutsche Bank, people briefed on the matter said. The bank, which declined to comment, scrutinizes its accounts for problematic ties as part of so-called “know your customer” banking rules and other requirements.

And with one of its most famous clients headed to the White House, the bank designed a plan for overseeing the accounts of Mr. Trump and Mr. Kushner and presented it to regulators at the New York State Department of Financial Services early this year. The plan essentially called for monitoring the accounts for red flags such as exceptionally favorable loan terms or unusual partners. [Continue reading…]

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