Trump’s Financial Crisis: Can’t Secure $464 Million Bond! What’s Next?

Attorneys representing former President recently revealed that he's encountering significant challenges in securing a bond to satisfy a $464 million civil fraud judgment. These hurdles, described as “insurmountable difficulties,” arise from the immense size of the judgment, requiring the use of real estate assets as collateral.

Donald Trump
Donald Trump

The judgment, issued by Judge Arthur Engoron in February, held Trump accountable for a decade of dealings involving fraudulent financial statements that inflated the value of his real estate holdings and misrepresented his wealth. Alongside the substantial financial penalty, Trump was also prohibited from leading any -based companies for a specified period. Additionally, his sons, Donald Trump Jr. and Eric Trump, faced fines and similar restrictions.

Alan Garten, the general counsel for the Trump Organization, affirmed that while Trump remains financially stable with substantial assets, the sheer size of the judgment necessitates leveraging real estate assets for the bond. However, no surety bond provider approached by Trump has been willing to accept real estate as collateral, posing a significant obstacle.

Trump's legal team, contesting the judgment as “unconstitutionally excessive,” has petitioned the appellate court to permit a bond in a lesser amount. They argue that liquidating real estate assets to obtain the required cash would result in substantial and irrecoverable losses.

Efforts to secure the bond have been further complicated by the refusal of surety companies to allow the Trump Organization to use its properties as collateral. Instead, the only viable option presented requires posting 120% of the bond amount in cash and cash equivalents, totaling over $557 million.

The New York Attorney General's Office has opposed the notion of a reduced bond, expressing concerns that Trump and his co-defendants may attempt to evade or hinder enforcement of the judgment.

Despite these , Trump maintains his denial of any wrongdoing and intends to pursue an appeal. However, until he places funds into an escrow account or posts a bond, the accrual of interest on the fine continues, potentially resulting in tens of millions of dollars in additional costs during the appeal process.

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