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Mark Cuban Challenges Rep. Lieu’s Claim About Trump’s Ability To Cover $464M Bond

The difficulty faced by former President Donald Trump in securing a $464 million appeal bond has led to a public dispute between Rep.

Ted Lieu and billionaire Mark Cuban, with the former accusing Trump of financial deceit.

Trump’s Financial Dilemma

Credits: DepositPhotos – NEW YORK, USA – Sep 21, 2017: Meeting of the President of the United States Donald Trump with the President of Ukraine Petro Poroshenko in New York — Photo by palinchak

Following a civil fraud judgment in New York, Trump’s legal team has expressed that obtaining the necessary appeal bond is practically unfeasible, sparking debates over his financial status.

Lieu’s Accusation

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Rep. Ted Lieu publicly doubted Trump’s billionaire status due to his inability to meet the judgment requirement, suggesting mathematical inconsistency in Trump’s claims.

Cuban’s Counterargument

Credits: DepositPhotos – Mark Cuban at the 2017 Billboard Awards Arrivals, T-Mobile Arena, Las Vegas, NV 05-21-17 — Photo by s_bukley

Mark Cuban intervened, arguing that Lieu’s assessment was flawed. He explained the difference between net worth and liquidity and emphasized the challenges in the current economic environment.

Zero-Interest Rate Environment

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Cuban highlighted how the prolonged period of low-interest rates discouraged keeping large cash reserves, challenging Trump’s expectation of quickly securing the bond.

Net Worth vs. Liquidity

Credits: DepositPhotos – LOS ANGELES – JUN 24: Mark Cuban at the 2019 NBA Awards at the Barker Hanger on June 24, 2019 in Santa Monica, CA — Photo by Jean_Nelson

Explaining further, Cuban pointed out the impracticality of maintaining significant liquid assets against total net worth, especially regarding Trump’s real estate and foreign holdings.

Bond Market Realities

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Cuban also noted the reluctance of bond companies to loan against Trump’s asset types, particularly in a volatile commercial real estate market.

Trump’s Legal Efforts

Credits: DepositPhotos – Oskaloosa, Iowa – July 25, 2015: Donald Trump make America great again rally. — Photo by sgtphoto

Trump’s team reported extensive efforts to engage numerous surety companies, underscoring the unprecedented bond requirement for a private entity.

The Appeals Court Ruling

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A New York Appeals Court’s decision mandates Trump to post the total bond amount, adding another layer to the ongoing legal saga.

The Fraud Allegations

Credits: Depositphotos – 21 February 2016: Republican Presidential candidate Donald Trump speaks to several thousand supporters at a rally in Atlanta, Georgia. — Photo by actionsports

The controversy stems from allegations against Trump of inflating asset values and committing fraud, which led to a significant judgment against him and calls for a compliance director’s appointment.

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Credits: DepositPhotos