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Defense Department subpoena sought Re Federal Savings Bank

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The Federal Savings Bank
The Federal Savings Bank, West Loop, in the news again. 

Crain’s Chicago reports:

Two senior House Democrats are pushing to subpoena the Department of Defense on whether Trump administration officials considered nominating Chicago banker Stephen Calk as secretary of the Army after his small local bank made outsized loans to Donald Trump’s former campaign manager.

The request for a subpoena was made in a letter today—you can read it below—to U.S. Rep. Trey Gowdy, R-Texas, chairman of the House Oversight & Government Reform Committee, from the panel’s senior Democrat, Rep. Elijah Cummings of Maryland, and Rep. Stephen Lynch of Massachusetts, senior Democrat on the House Oversight subcommittee on national defense.

The two Democrats said the Defense Department hadn’t produced any of the documents they asked for, nor said when it would.

The letter referenced “extremely troubling reports that a banker named Stephen Calk may have made loans of up to $16 million to President Donald Trump’s campaign chairman, Paul Manafort, in exchange for promises to name him secretary of the Army.”

Calk’s Chicago-based lender, Federal Savings Bank, made a total of $16 million in loans to Manafort in December 2016 and January 2017. They were collateralized by homes in New York City, the Hamptons and Virginia.

At just $364 million in assets, Federal Savings Bank is far too small to be making loans of that size to a single borrower.

“Although Mr. Calk ultimately was not given a position with the department, reports that he was being considered for a high-level and highly sensitive national security position within the Trump administration as part of a quid pro quo with Mr. Manafort raise serious concerns that, completely apart from Special Counsel Robert Mueller’s investigation, warrant scrutiny by Congress,” the Democrats’ letter said.

They want to review all Defense Department documents and communications regarding a potential role for Calk, among other items.

(click here to continue reading Defense Department subpoena sought on Trump official – Government News – Crain’s Chicago Business.)

Previous coverage here and here  

Written by Seth Anderson

March 28th, 2018 at 5:19 pm

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