The Times has a fascinating article tonight on the Trump White House’s courtship of Justice Anthony Kennedy, building a relationship and rapport to make Kennedy comfortable retiring on Trump’s watch and ahead of the 2018 midterm election. One particular detail grabbed my attention: Justice Kennedy’s son Justin was the global head of real estate capital markets at Deutsche Bank and a key lifeline of capital to President Donald Trump.

Here’s how the Times tells it …

But they had a connection, one Mr. Trump was quick to note in the moments after his first address to Congress in February 2017. As he made his way out of the chamber, Mr. Trump paused to chat with the justice. “Say hello to your boy,” Mr. Trump said. “Special guy.” Mr. Trump was apparently referring to Justice Kennedy’s son, Justin. The younger Mr. Kennedy spent more than a decade at Deutsche Bank, eventually rising to become the bank’s global head of real estate capital markets, and he worked closely with Mr. Trump when he was a real estate developer, according to two people with knowledge of his role. During Mr. Kennedy’s tenure, Deutsche Bank became Mr. Trump’s most important lender, dispensing well over $1 billion in loans to him for the renovation and construction of skyscrapers in New York and Chicago at a time other mainstream banks were wary of doing business with him because of his troubled business history.

As many of you will remember, Deutsche Bank isn’t just any bank. As I noted in the first post I wrote about Trump’s ties to Russia and Vladimir Putin back on July 23rd, 2016, by the mid-90s, every major US bank had blackballed Donald Trump. as the Times put it in 2016, “Several bankers on Wall Street say they are simply not willing to take on what they almost uniformly referred to as ‘Donald risk.'” None would do business with him. With one big exception: Deutsche Bank.

Deutsche Bank of course is not actually an American bank. But it has a major business in the US. And it was the bank’s effort to gain a bigger foothold in the US that seems to have been behind the special relationship with Trump.

As The Financial Times put it last year, in the middle 1990s, Deutsche was looking for a foothold in the US and “the bank saw a niche in serving rich developers who had hit a few bumps along the way, such as Harry Macklowe and Ian Bruce Eichner, both celebrated owners and losers of New York real estate.” Donald Trump fit the bill to a tee.

Deutsche also had its own problems with money laundering, particularly money laundering tied to Russia. Days after Trump became President, New York State announced a $425 million fine Deutsche Bank had agreed to pay over a $10 billion Russian money laundering scheme, one of many investigations the bank is still embroiled in.

When I first read the Times story I wasn’t sure whether the younger Kennedy, whose title was Managing Director and Global Head of Real Estate Capital Markets, would have been someone to actually make loans to someone like Trump as opposed to overseeing more complex or synthetic efforts like mortgage backed securities and such. But it turns out he definitely was. The FT says Kennedy was “one of Mr Trump’s most trusted associates over a 12-year spell at Deutsche.” A review of Kennedy’s bio suggests those twelve years were 1997 through 2009 – key years for Trump.

Kennedy was one of the few bankers to accurately predict the 2007/08 mortgage backed securities meltdown and made an astonishing amount of money for Deutsche Bank by shorting mortgages starting in 2006. As Crain’s New York put in 2010, “in just the first half of 2007, [Kennedy’s group’s] bet generated as much as $540 million in revenue for Deutsche Bank as subprime mortgages fell apart, according to Bloomberg News, and the wager proved even more lucrative as the rot spread.”

Kennedy left Deutsche Bank at the end of 2009, apparently because post-financial crisis regs on over-risky bets by banks were making it difficult for him to operate. He left to found LNR Property LLC with partner Toby Cobb, which would become a big player in the distressed-commercial-property space.