Donald Trump's collateral in $175m bond revealed (www.newsweek.com)

submitted 6 months ago by Rapidcreek@lemmy.world to c/politics@lemmy.world

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[-] dhork@lemmy.world 63 points 6 months ago

The real story here isn't that Trump had 175M in cash to put up. It's that the insurer acknowledged that he didn't have all the paperwork that the AG says is necessary to provide a bond like this to a NYS court, but insists the AG is wrong, the bond is all hunky-dory, and in fact the AG should pay the court costs for making the insurer re-file the paperwork for such a perfect bond.

They can't both be right. I tend to believe the AG here, though, and think maybe Trump and his friend Mr. Hankey are prevaricating a bit on that.

[-] orbitz@lemmy.ca 5 points 6 months ago

Another comment I read mentioned the bond says the company isn't responsible for the amount if Trump loses and didn't really do any checking to confirm the account used to secure the bond. If this is incorrect please say something since I do not like spreading false statements but it seems very on brand for Trump so it's easy to believe. Always great when president has that amount of faith from random people, really shows how reliable they are.

[-] TransplantedSconie@lemm.ee 45 points 6 months ago

The ex-president produced a wad of lint, a 1975 penny, a can of half used orange tinted skin cream, a scrap-book filled with IOUs and cutouts from a 1987 sears lingerie section, and a used sick of gum.

[-] homesweethomeMrL@lemmy.world 10 points 6 months ago

A signed boxing glove and a plastic grocery bag containing $50,000 in cash.

[-] Burninator05@lemmy.world 1 points 6 months ago

New York got screwed on that deal. Everyone knows that the best lingerie section of any Sears catalog was 1984's Christmas edition.

[-] Dkarma@lemmy.world 3 points 6 months ago

You're forgetting the epic nip slip of 91

[-] ramenshaman@lemmy.world 34 points 6 months ago

I'm so sick of looking at that idiot. I'd pay a decent amount of money to see him get punched in the face.

[-] frunch@lemmy.world 9 points 6 months ago

He might just have to consider your offer if he continues to lose big bucks in these lawsuits he's ensconced in

[-] twistypencil@lemmy.world 7 points 6 months ago

I'll add to the pile

[-] Xtallll@lemmy.blahaj.zone 4 points 6 months ago

Is Ivan Drago still around?

[-] Wiz@midwest.social 4 points 6 months ago

"If he dies, he dies."

[-] JackDark@lemmy.world 28 points 6 months ago

KSIC's $175 million bond was collateralized by the $175,304,075.95 Trump had placed in a Charles Schwab bank account and which was specifically pledged to KSIC.

[-] FilterItOut@thelemmy.club 29 points 6 months ago

Huh. Is the only reason he didn't post his own bond because he wanted it to earn interest in the interim? Fucking millionaires and their money games.

[-] newthrowaway20@lemmy.world 26 points 6 months ago

Yeah it's always some shit like that. Start playing with numbers in the millions and it becomes real easy to turn that into extra money just by parking it in the right place.

[-] PoliticalAgitator@lemmy.world 13 points 6 months ago

Being rich sounds easy as fuck.

[-] PM_Your_Nudes_Please@lemmy.world 11 points 6 months ago* (last edited 6 months ago)

There’s a reason self-made millionaires all agree that the first million is the hardest. Making money is much easier when you’re living on interest and dividends from your existing cash. At a certain point, things reach a critical mass and you begin growing wealth without even trying, simply because interest, stocks, dividends, etc are growing faster than you can reasonably spend it.

[-] dhork@lemmy.world 11 points 6 months ago

Being rich is a lot easier than getting rich.

[-] IHawkMike@lemmy.world 10 points 6 months ago

Unless you're born into it.

[-] KairuByte@lemmy.dbzer0.com 2 points 6 months ago

When you’ve got $1k in the bank, and you need 100% of that to live, you can’t really save.

When you’ve got 1 million in a proper savings account, you’re getting enough a year to technically live off of through just interest.

Properly invest that 1 million and you can comfortably live off the interest alone, and even compound that interest.

[-] stoly@lemmy.world 1 points 6 months ago* (last edited 6 months ago)

I think it is once you're there, assuming that you're not the "working wealthy". At that point, you just have to not screw up in a big way.

[-] NotMyOldRedditName@lemmy.world 15 points 6 months ago* (last edited 6 months ago)

Not giving up all your cash or selling assets for a bond is the best financial decision for anyone in most cases.

What if it was you, the bond was 10k.

You only have stocks and if you sell them you'd have short term capital gains tax.

You're confident you're going to win on appeal (not that I think Trump will win).

If you sell your stocks you're out thousands in taxes and if the prices move up, you'll have even less shares after.

If someone else posts the bond you don't suffer any taxes unless you lose.

Cash also has value. It gives you options. Giving it all up for a bond is also bad.

This isn't a Trump or millionaire thing. It's an everyone thing.

Edit: the problem with Trump is no one believed he a actually has the money for the bond (especially the 440mil one prior) except for property which has been grossly over valued. And no one trusts he would pay if he loses because he has a habit of not laying paying bills

[-] gianni@lemmy.ca 11 points 6 months ago

Yes, but the article states that the bond was collateralized by $175 MM in cash—so it must have already been cash or liquidated anyway.

[-] NotMyOldRedditName@lemmy.world 7 points 6 months ago

Giving up liquid cash is also bad as it limits your options.

He can't use this money for anything else now as he had to collateralize it. He's still able to earn interest as its his account, but he can't use it for the election for example. And no one would lend him money against it because he might lose it.

If he'd been a trustworthy person, he'd still have 100% control of that cash.

It's not a good situation to be in for anyone.

[-] ganksy@lemmy.world 5 points 6 months ago

He also can't touch that Schwab account so it's just the same as putting up the bond himself

[-] NotMyOldRedditName@lemmy.world 8 points 6 months ago

Can't or legally can't?

I imagine since it's his account he might be able to somehow run off with it, but in so doing would be breaking the law?

[-] ganksy@lemmy.world 4 points 6 months ago

That's also my guess. May be monitored.

[-] guacupado@lemmy.world 3 points 6 months ago

And we all know how harshly he gets punished for breaking the law.

[-] bquintb@midwest.social 7 points 6 months ago

I agree, Trump is definitely a millionaire

[-] partial_accumen@lemmy.world 24 points 6 months ago

For historical reference. A Schwab account containing securities as also used as the collateral given to Chubb Group for the bond for the E Jean Carroll law suit appeal. Interestingly, Chubb refused to offer a bond for this other case needing the $175 million.

[-] orclev@lemmy.world 19 points 6 months ago

I think the key takeaway there though is that Trump controls that account. KSIC can take control of that account within 24 hours, but nothing is stopping Trump from just draining that account if he loses his appeal.

[-] normanwall@lemmy.world 7 points 6 months ago* (last edited 6 months ago)

Watching him screw over the person dumb enough to vouch for him would be hilarious

Also, it will be when he loses his appeal

[-] itsonlygeorge@reddthat.com 14 points 6 months ago

So, Russian money in a bank account with Trumps name on it?

[-] NotMyOldRedditName@lemmy.world 13 points 6 months ago* (last edited 6 months ago)

I wonder if they'll trace the source of those funds before accepting it for anything.

[-] Burninator05@lemmy.world 6 points 6 months ago

Why did he need the bond company if he was able to put the entire $175m in cash into a holding account?

[-] tiefling@lemmy.blahaj.zone 5 points 6 months ago

Interest

this post was submitted on 16 Apr 2024

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