Not only could Trump be subject to hefty financial penalties and lose control of his flagship properties dotting the Manhattan skyline, the trial also could significantly reshape his business empire, said Will Thomas, assistant professor of business law at the University of Michigan’s Ross School of Business. “It’s between severe and seismic” as to the effects on Trump’s businesses, Thomas told CNN on Monday.
“Just because a bank who’s giving you a loan says it’s worth what the loan amount is, which is what happens when anybody takes a loan out, they’re never going to say the real value,” she added. “They’re going to say what they want to say and not a penny more, or what the loan amount is and not a penny more.” Most of Trump’s business holdings are in real estate, and each of those properties has an intricate web of legal arrangements and obligations such as bank loans and long-term leases.