Citi Says Kushner Cos. Loan Was 'Completely Appropriate'
22 March 2018 - 2:38AM
Dow Jones News
By Telis Demos
Citigroup Inc. said in a letter sent Tuesday to lawmakers that a
loan made to Kushner Cos. shortly after the bank's chief executive
met with Jared Kushner last year was "completely appropriate."
On March 3, 2017, Citi CEO Michael Corbat met with Mr. Kushner,
President Donald Trump's son-in-law and a senior adviser to the
president. On March 31 of that year, Kushner Cos., which is
controlled by members of Mr. Kushner's family, and two partner
firms closed on a $325 million mortgage for a Brooklyn property
with Citigroup, according to the bank.
Sen. Elizabeth Warren (D., Mass.) and other lawmakers requested
more information about the meeting from the bank after it was
reported on by The New York Times last month.
Responding to that request, Citigroup's letter said "the Kushner
family has been a client of Citi for decades." It added the bank
started exploring the March loan in late 2016 before Mr. Corbat and
Mr. Kushner met.
Mr. Corbat "was unaware of the transaction" until the article
was published, and the loan didn't require his approval, the bank
said. The letter was signed by Citigroup general counsel Rohan
Weerasinghe.
"This transaction was done in the normal course of Citi's
commercial real estate lending business, received the necessary
credit and risk approvals without input from Mr. Corbat, and was
unrelated to any discussions with Mr. Kushner," the bank wrote.
Mr. Corbat requested the meeting with Mr. Kushner with the
purpose of discussing U.S. trade policy and the North American Free
Trade Agreement, or Nafta, the bank said. Citigroup has a large
subsidiary in Mexico.
"Nothing related to the [Brooklyn] loan or any other personal
business with Mr. Kushner or the Kushner Companies was discussed at
that meeting, " Citigroup said.
The bank also said that Mr. Kushner himself "played no role in
the loan origination or negotiation process" with Citigroup.
Mr. Kushner owns passive interests representing a 6.5% stake in
the Brooklyn property, part of Kushner Cos.'s overall 47.5% stake,
Citigroup said in the letter. Citigroup also said it recently
completed another mortgage deal with Kushner Cos. for a property in
which Mr. Kushner owns a passive 2% stake via a trust.
A spokeswoman for Kushner Cos. declined to comment on the
letter. A spokesman for Mr. Kushner declined to comment.
Erica Orden contributed to this article.
Write to Telis Demos at telis.demos@wsj.com
(END) Dow Jones Newswires
March 21, 2018 11:23 ET (15:23 GMT)
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