Politics - News Analysis

Trump Freaking Out as He Faces Deadline for Massive Bond — Expected Chubb to Cover it, and Now He’s in ‘PANIC MODE’

The deadline for former president Donald Trump to secure a half-billion-dollar bond to appeal his civil fraud case in New York is fast approaching and Trump is freaking out, say numerous sources who know how he thinks. Trump’s lawyers admitted on Monday that he’s having a tough time finding an insurance company dumb enough willing to underwrite his $454 million bond. Trump had been hoping Chubb, a company that underwrote his $91.6 million bond to cover the E. Jean Carroll bond would come through for him, but the insurance giant told his attorneys sometime during the past few days that this option was a definite nope, according to CNN.

Trump’s legal eagles have looked high and low, seeking out well-heeled supporters and determining what assets could be sold — quickly. Trump, the likely GOP presidential nominee has been becoming more and more worried as the March 25 deadline looms — especially since this could put a serious dent in his financial reputation because his identity has long been associated with his wealth. Trump is, of course, privately attacking New York Attorney General Letitia James and Judge Arthur Engoron for doing their jobs, sources told CNN. James provided the former president a 30-day grace period after Engoron’s ruling.

And of course, Trump was in insult mode just before 6:30 a.m. Tuesday, when he took to Truth Social eight times in a two-hour timespan, angrily posting about the deadline and complaining that he shouldn’t have to put up the money ( because he’s special, don’t you know?) He also fretted that he “would be forced to mortgage or sell Great Assets, perhaps at Fire Sales, and if and when I win the Appeal, they would be gone.”

“Does that make sense?” and then got all shouty: “WITCH HUNT. ELECTION INTERFERENCE!” he complained.

“These baseless innuendos are pure bullsh*t,” Trump campaign spokesman Steven Cheung said in a statement Tuesday. “President Trump has filed a motion to stay the unjust, unconstitutional, un-American judgment from New York Judge Arthur Engoron in a political Witch Hunt brought by a corrupt Attorney General. A bond of this size would be an abuse of the law, contradict bedrock principals [sic] of our Republic, and fundamentally undermine the rule of law in New York.”

Trump and his ambulance chasers are hoping an appeals court will pause the judgment while he appeals it. Or perhaps at least allow him to pay a smaller bond of $100 million. CNN reports the former president has privately expressed opposition to anything having to do with filing bankruptcy, and for now, according to one person familiar with the talks told CNN, this seems like the least likely for the time being.

However, his lawyers informed the New York appeals court on Monday that he has approached 30 underwriters to back the bond, and Trump himself has said on Truth Social that he believed it was “practically impossible” for him to post this amount. Further, Trump’s attorneys say potential underwriters are seeking cash and not properties to back the bond.

I’m glad that James and Engoron have done their exhaustive work here. Last month, Engoron ruled on the bond, which ordered Trump to pay $355 million in disgorgement, or “ill-gotten gains,” in the case successfully brought by James. In writing his opinion, Engoron noted that Trump and his co-defendants — including his sons Eric and Donald Trump Jr. — were on the hook for fraud, conspiracy, and issuing false financial statements. Oh, and also false financial statements and false business records. The judge held that the defendants fraudulently inflated the value of Trump’s assets in order to obtain more favorable loans and insurance rates. This meant that Trump was now on the hook for more than $450 million when interest was included.

To prevent the state from enforcing this judgment, Trump has to post a bond to be held in account as the appellate process continues.

Trump successfully posted a $91.6 million bond earlier in the month, stemming from his appeal in the Carroll defamation case, according to Gary Giuletti, an insurance broker who testified for Trump during the trial, some of the biggest underwriters have internal policies that limit them, keeping them from securing bonds that are in excess of $100 million.

In a perfect world, there would be a Letitia James for every crooked Donald Trump. But this world is far from perfect. Here at least, Trump will likely get his just desserts so we can take comfort in that.

meet the author

Megan has lived in California, Nevada, Arizona, Texas, Louisiana, Mississippi, and Florida and she currently lives in Central America. Living in these places has informed her writing on politics, science, and history. She is currently owned by 15 cats and 3 dogs and regularly owns Trump supporters when she has the opportunity. She can be found on Twitter at https://twitter.com/GaiaLibra and Facebook at https://www.facebook.com/politicalsaurus

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