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.
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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.
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