Panic mode sets in for Trump as he faces deadline for massive bond

Panic mode sets in for Trump as he faces deadline for massive bond - Business and Finance - News

Donald Trump Scrambling to Secure $500 Million Bond Amidst Civil Fraud Case Deadline

Former President Donald Trump is in a state of urgency as the clock ticks down towards the deadline to secure a bond worth half a billion dollars to appeal his civil fraud case in New York. According to trusted sources privy to Trump’s thoughts, the President is finding it increasingly challenging to obtain an insurance company willing to underwrite his $454 million bond.

Trump’s legal team acknowledged on Monday that the President was grappling with this issue. Initially, Trump had relied on Chubb, which previously underwrote his $91.6 million bond for the E. Jean Carroll judgment, to come through. However, Trump’s legal team received disheartening news from Chubb in recent days that this solution was no longer viable.

With the March 25 deadline looming, Trump’s team has reportedly reached out to wealthy supporters and explored potential assets that could be sold swiftly. Trump himself has grown increasingly apprehensive about the optics of confronting a financial crisis while his wealth is a significant part of his public identity. Privately, Trump has continued to vent his frustrations towards New York Attorney General Letitia James and Judge Arthur Engoron over the matter.

In a series of posts on his social media platform between 6:30 am and 8:30 am on Tuesday, Trump publicly vented his concerns. He argued that he should not be compelled to mortgage or sell valuable assets at fire sale prices and reiterated his stance that this was a politically motivated witch hunt.

Trump campaign spokesman Steven Cheung released a statement, expressing the belief that Trump’s motion to stay the judgment was unjust and an abuse of the law. The spokesman also emphasized that this case represented a breach of bedrock principles and a fundamental undermining of the rule of law in New York.

While Trump and his legal team await clarification on whether an appeals court will halt the judgment or allow him to pay a smaller bond of $100 million, opposition to filing for bankruptcy remains the least likely scenario at present.

Trump’s legal team informed the New York appeals court on Monday that they had contacted over thirty underwriters to secure the bond, with Trump himself stating he considered it ‘practically impossible’ for him to post such a large amount. It is important to note that potential underwriters are seeking cash as collateral, not properties.

The bond stems from Engoron’s ruling last month, which ordered Trump to pay $355 million in disgorgement (ill-gotten gains) following the civil fraud trial brought by James. In his opinion, Engoron declared Trump and his co-defendants – including his adult sons – liable for fraud, conspiracy, false financial statements, and false business records. The total amount Trump owed surpassed $450 million with interest factored in.

To prevent the state from enforcing this judgment, Trump must post a bond to be held in an account pending the appellate process, which could take years to unfold.

Gary Giulietti, an insurance broker who testified for Trump during the civil fraud trial, revealed that some of the biggest underwriters have internal policies restricting them from securing bonds exceeding $100 million.