Thread by @TimInHonolulu

1. Trump Taxes: There's two basic types of commercial loans. Credit based & Asset Based. When you buy a home the bank insures both areas are covered. They check your credit ability to repay & make sure there's an equity cushion to protect them. That was the basis of our banking

2. industry and what went wrong leading to the mortgage/bank crisis.
But commercial loans are different. I don't want to shock folks but a lot of developers pay little or no income taxes. They build up tax attributes that in a structure like Trump where he is personally at risk

3. may be carried over to later years. We saw this in a few old returns that have been uncovered.

Development loans are often "non-recourse" meaning that the mortgage holders only get to foreclose on the collateral and don't have "recourse" to pursue borrower for a deficiency.

4. Trump related development loans are likely non-recourse.
But Trump is running Hotel & Resort business. Normally that would entail having a credit facility to support the operations and fill in the cash flow valleys. If credit based, it would likely mean that Trump as owner's

5. tax returns have been used as part of the underwriting process. So @DeutscheBankAG and other lenders would generally have Trump's returns. @RepJerryNadler @RepAdamSchiff could subpoena them. But I think it is more likely that the loans are not credit based because Trump

6. cannot get a credit based loan. But subpoenas should be sent to each lender and unless they come back with "we don't have them" the committees should pursue it.
So if Trump doesn't have a "credit" based loan he likely has an "asset" based loan. These are complicated loans

7. that provide advances based on lending asset base formula. Often used to finance inventory based businesses that gives a lien on the cash, that passes to the inventory and that passes to the receivable and to the cash received on the sales. CIT is a big asset based lender.

8. That does not mean that Trump's asset based lenders would not want to see his taxes to look for other things. In particular, Trump has a history that includes business relations with organized crime. #FINCEN's Know your Customer rules make lenders know that they have a duty

9. to vet their customers for money laundering. They can't say we didn't know because US law punishes "willful blindness" as if it was knowledge. So any Trump lender should have material that deals with the FINCEN concerns. So even though Trump may not be in a credit based loan

10. it is likely his lenders had an obligation to review his returns. If the lender industry is allowing a know Russian money launderer to operate in the shadows the financial services committees and Ways and Means have a duty to investigate. So subpoena all Trump lenders.

11. If you want to get at Trump go after his sources of cash. Make him too hot to lend to. In time he will default and under 26 USC 6103 his returns become open to his creditors. Let him know that hiding the taxes means Plan B, destruction of his money flow.

12. We need to stop thinking of Trump as a threat we are powerless to control. Money is all he care about. Threaten his access to cash. The man has filed six bankruptcies. He knows how to cave. 😎