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Trump’s Financial Woes Deepen as Efforts To Get $454M Bond Fail

Donald Trump and his legal team encounter a significant hurdle as they struggle to secure a bond to cover a $454 million civil fraud judgment, putting the former president’s finances under intense scrutiny.

Bond Securing Efforts Falter

Credits: DepositPhotos – 12.07.2018. BRUSSELS, BELGIUM. Press conference of Donald Trump, President of United States of America, during NATO (North Atlantic Treaty Organization) SUMMIT 2018. ” — Photo by gints.ivuskans

Despite negotiations with major lenders, Trump’s attempts to obtain a bond guaranteeing the massive judgment payment have been unsuccessful.

The Challenge of Real Estate Collateral

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Trump’s efforts to use real estate as collateral were rebuffed by lenders, who demanded cash guarantees, complicating the process of securing the required bond.

The Legal Dilemma

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This financial predicament threatens not only Trump’s assets but also his reputation as a successful businessman, with potential implications for his political future.

Trump’s Appeal for Waiver

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Arguing that having to pay the bond for the appeal would wreck him financially even if he then wins the appeal, Trump has requested the appellate court remove the requirement to post it.

Potential Asset Seizure

Credits: DepositPhotos – November 3, 2022, New York, USA: Letitia James during the US Vice President Harris visit to Barnard College in New York as she delivers remarks at a GOTV event with Governor Kathy Hochul (D-NY) and Lieutenant Governor Delgado. — Photo by thenews2.com

New York AG Letitia James has suggested that she might initiate the process to seize his assets as early as next week, should Trump be unable to pay the bond.

Suretor Negotiations Revealed

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Trump’s legal filings detail extensive efforts to negotiate a bond, including discussions with 30 lenders and a near-agreement with Chubb, which ultimately fell through.

The Judgment’s Origins

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The judgment arises from findings that Trump significantly overvalued parts of his assets, leading to hefty penalties and interest that accumulate daily.

Previous Financial Victories

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Amid these challenges, Trump managed to secure a bond for a different legal matter, providing a temporary reprieve from his financial troubles.

Business Operations Restriction

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In addition to financial penalties, Trump and his sons face restrictions on their business operations, although these have been temporarily stayed by an appeals judge.

The Debate Over Financial Penalties

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AG James argues that Trump might not be able to fulfill the financial obligations after the appeal in case he loses, which is why the court should not waive the requirement.

The Slow Process of Asset Seizure

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Even if asset seizure begins, legal experts highlight the lengthy and complex process involved in actually confiscating Trump’s properties.

Trump’s Financial Standing

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Trump’s wealth, largely tied up in properties, faces scrutiny, with his liquid assets and the potential need for “fire sales” becoming focal points of the legal battle.

Real Estate Challenges

The downturn in real estate markets, exacerbated by rising interest rates and pandemic-era workplace shifts, adds to the potential financial hit Trump faces in selling properties.

Legal Team’s Argument

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Trump’s lawyers argue against the forced sale of assets under current market conditions, highlighting the severe losses such actions would entail.

The Lockton Companies Statement

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A statement from Lockton Companies emphasizes the Trump Organization’s liquidity challenges, underscoring the difficulty in meeting the bond’s cash requirements.

Underwriter’s Testimony Questioned

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The credibility of a key testimony from Trump’s defense was challenged by the judge, adding another layer of complexity to the ongoing legal and financial saga.

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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