Former President Donald Trump is currently facing a significant financial challenge after a New York judge ordered him to pay a $464m penalty for falsely inflating his assets. Trump and his lawyers are struggling to find a bond to cover this massive judgment, with many bonding companies unwilling to consider such a substantial amount.
Trump initially offered to post a smaller bond of $100m while appealing the case, but this request was denied by the judge. Despite efforts by his legal team to secure a bond from 30 different companies, they have been unsuccessful in finding a company willing to take on the nearly half-billion dollar total.
The practical impossibility of obtaining a bond for such a large amount poses a significant obstacle to Trump’s ability to appeal the decision. His lawyers argue that this interferes with his right to appeal, as finding a company willing to issue a bond of this size is incredibly rare, especially for individuals or privately held businesses.
The challenges of finding a bond are compounded by the fact that bonding companies are only willing to accept cash or cash equivalents as collateral, rather than hard assets such as real estate. Despite Trump’s sizable net worth, including $2.6bn in assets and $400m in liquid assets, bonding companies are still hesitant to provide a bond of this magnitude.
In addition to the $464m fraud judgment, Trump has also been ordered to pay $83m in a separate defamation case, further adding to his financial burdens. New York’s attorney general has threatened to seize his assets if he fails to pay the fraud judgment, which continues to accrue interest at a rate of at least $112,000 per day.
The challenges faced by Trump in covering this massive fraud judgment highlight the significant financial consequences of his actions and the potential risks associated with engaging in fraudulent business practices. This case serves as a cautionary tale for individuals and businesses alike, emphasizing the importance of conducting business ethically and transparently to avoid costly legal penalties and financial liabilities.
