Donald Trump low on funds
Donald Trump is telling a court in New York that it’s practically impossible for him to pay the full bond of $454 million in a fraud case against him. He says this because coming up with that much money could mean he needs nearly $1 billion in cash reserves.
Trump wants to either pay a smaller bond or no bond at all while he appeals the case. But the New York Attorney General, Letitia James, disagrees, saying Trump shouldn’t be trusted.
In his court filing, Trump mentioned that he approached around 30 insurance companies through four different brokers to figure out how much money he’d need for the bond. He believes that to get such a big bond, he might need close to $1 billion in cash reserves. However, he didn’t explain exactly where he got this number from. Usually, insurance companies ask for more collateral than the penalty to make sure they don’t lose money.
Trump also said that he’s been trying really hard to get the bond but hasn’t been successful, even after negotiating with one of the biggest insurance companies in the world.
This filing shows that Trump might be having financial problems after losing two court cases this year. This makes his legal situation more complicated as he tries to return to the White House while dealing with many legal issues, including four criminal cases.
According to Trump, insurance companies usually ask for collateral that’s about 120% of the penalty amount. He also mentioned that they charge about 2% of the bond amount each year, which would be an extra $18 million, according to his lawyers.
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