Kushner, who lost his security clearance to White House following reports that he breached the ethics rule, found himself in the middle of another controversy after the report alleged that Kushner met with the top heads of the lending firms at the White House previous year, after which he received an exorbitant sum of loan to aid his company's business ventures.
The Washington Post reported on Tuesday that U.S. officials had intercepted conversations among officials from at least four foreign governments - China, the United Arab Emirates (UAE), Mexico and Israel - about using business opportunities to seek leverage over Mr Kushner.
DFS Superintendent Maria Vullo, an appointee of New York Gov. Andrew Cuomo, has asked for the banks to reply to her request by Monday, March 5, said the person familiar with the letters. The agency is also requesting descriptions on how the banks processed Kushner's loans and whether the banks did any internal review of the Kushners and their companies, the person said.
In Kushner's case, a permanent clearance wasn't coming anytime soon; according to the Washington Post, Deputy Attorney General Rod Rosenstein had warned the White House on February 9 that recent revelations in Kushner's background investigation "could be an obstacle to his clearance process".
Apollo spokesman Charles Zehren told the paper Harris was not involved in the decision to loan money to Kushner Cos.More news: Apple-Branded Premium Over-Ear Headphones Rumored To Debut In Q4
Since the beginning of the Trump administration, both Mr Kushner, 37, and his wife, Ms Ivanka Trump, the President's eldest daughter, 36, have enjoyed a special status within the White House as both family members and assistants to the President.
Peter Mirijanian, a spokesman for Kushner's lawyer Abbe Lowell, said Kushner has had no role in Kushner Cos since joining the government. "Stories like these attempt to make insinuating connections that do not exist to disparage the financial institutions and companies involved", she said.
Last year, the regulators asked Deutsche Bank for details about transactions it had flagged as suspicious that had apparent ties to officials in Mr. Trump's administration or people close to them, one of the people said.
It was reported this week Kushner's security clearance was downgraded from top secret to secret because of issues with his background investigation.
Kushner resigned as chief executive of Kushner Cos. when he joined the White House last January, and he sold a small portion of his stake in the company to a trust controlled by his mother. She said Citigroup negotiated the 2017 loan with Kushner Cos'. business partner, a real estate developer.
Kushner's contacts with foreign officials are now under investigation by US special counsel Robert Mueller, who has been probing Russia's interference in the last presidential election since May 2017. Kushner also still holds a stake in the entity that owns the Brooklyn buildings and received the loan from Citigroup.