Donald Trump told a New York appeals court that posting a full bond for the $454 million penalty against him in the state’s civil fraud case is a “practical impossibility” because it could require him to get cash reserves nearing $1 billion.
Trump, who is seeking to post a smaller bond or no bond at all while he appeals, would need to hold a “fire sale” of properties to come up with sufficient cash to use as collateral for a full bond, the former president said in a filing Monday. New York Attorney General Letitia James has said Trump’s request should be denied because he cannot be trusted.
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In the filing, Trump said that he has approached about 30 surety companies through 4 separate brokers to reach his estimate that “a bond requirement of this enormous magnitude” could require “cash reserves approaching $1 billion.”
Trump didn’t explain where he got the figure, but surety companies can require collateral far exceeding a verdict to ensure they don’t face any risk.
“Diligent efforts since that time, including countless hours negotiating with one of the largest insurance companies in the world have proven that obtaining an appeal bond in the full amount of the judgment is not possible under the circumstances presented,” Trump said.
The filing is the latest sign that Trump is facing a cash crunch after losing two civil trials this year, complicating his crowded legal strategy as he campaigns to return to the White House amid a torrent of legal troubles, including four criminal prosecutions.
Trump said that surety companies typically require collateral of approximately 120% of the amount of the judgment. The former president also said that surety companies charge bond premiums of approximately 2% per year with two years in advance, which would cost an extra $18 million, Trump’s lawyers said.
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Vikram Sharma is a globe-trotting journalist with a global perspective on international events. His articles offer readers a global perspective on international events, exploring complex geopolitical issues and providing insights into the world’s most pressing challenges.
