Why Trump cannot raise bond to avert asset seizure
If the former president does not post the $454M bond in his civil fraud case by Monday, his assets can be seized
What happened
Former President Donald Trump's lawyers told a New York appellate court Monday he cannot secure a bond to guarantee the payment of a $454 million judgment for fraudulently inflating his business assets. If Trump does not post the bond or put $454 million in escrow by March 25, New York Attorney General Letitia James can start seizing his assets.
Who said what
Trump's "diligent efforts have proven that a bond in the judgment's full amount is 'a practical impossibility,'" Trump's lawyers said. Some 30 underwriters refused to guarantee a bond that large with real estate — Trump's main asset — as collateral, the lawyers said. And "obtaining such cash through a 'fire sale' of real estate holdings would inevitably result in massive, irrecoverable losses."
The commentary
Of course no one will lend Trump a half-billion dollars — "would you?" Catherine Rampell said at The Washington Post. Even if his real estate is not overvalued or "heavily encumbered by debt already," Trump has an "extensive history of not paying his bills." Trump has adequate net worth, but New York's insurance regulators will not allow real estate as collateral for surety bonds, Peter Coy said at The New York Times.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
If the courts do not help him, Trump can quickly sell assets, ask James to extend her grace period, "seek help from a wealthy supporter" or ally, or declare bankruptcy, the Times said.
-
6 exquisite homes for skiersFeature Featuring a Scandinavian-style retreat in Southern California and a Utah abode with a designated ski room
-
Film reviews: ‘The Testament of Ann Lee,’ ’28 Years Later: The Bone Temple,’ and ‘Young Mothers’Feature A full-immersion portrait of the Shakers’ founder, a zombie virus brings out the best and worst in the human survivors, and pregnancy tests the resolve of four Belgian teenagers
-
Political cartoons for January 25Cartoons Sunday's political cartoons include a hot economy, A.I. wisdom, and more
-
Trump’s ‘Board of Peace’ comes into confounding focusIn the Spotlight What began as a plan to redevelop the Gaza Strip is quickly emerging as a new lever of global power for a president intent on upending the standing world order
-
Trump sues JPMorgan for $5B over ‘debanking’Speed Read Trump accused the company of closing his accounts for political reasons
-
ICE memo OKs forcible entry without warrantSpeed Read The secret memo was signed last May
-
Halligan quits US attorney role amid court pressureSpeed Read Halligan’s position had already been considered vacant by at least one judge
-
Can anyone stop Donald Trump?Today's Big Question US president ‘no longer cares what anybody thinks’ so how to counter his global strongman stance?
-
How Iran protest death tolls have been politicisedIn the Spotlight Regime blames killing of ‘several thousand’ people on foreign actors and uses videos of bodies as ‘psychological warfare’ to scare protesters
-
Trump’s Greenland ambitions push NATO to the edgeTalking Points The military alliance is facing its worst-ever crisis
-
Venezuela: Does Trump have a plan?Feature Oil and democracy are both on the table
