I posted about this in a different thread already. Peter Coy of the NY Times says that bond companies in New York can’t take real estate as collateral.
He says:
In an unregulated insurance market, Trump would have been able to come up with a surety bond with ease because his net worth far exceeds the size of the bond he needs. Some enterprising business would have asked him to put up some of his real estate holdings — say, $1 billion worth — as collateral. For good measure, it would have charged him a high premium on the bond.
But the state insurance departments that regulate surety bond companies don’t allow that kind of business. It would be highly risky for insurers to accept real estate as collateral because its value is unpredictable and it’s hard to sell on short notice. Regulators don’t allow insurance companies to charge high premiums for taking on that kind of risk; they want insurers to charge low premiums for low risk.
https://www.nytimes.com/live/2024/03...nied-insurance
Originally Posted by txdot-guy
Any insurance company that underwrote a bond for Donald Trump in his civil fraud case in New York would undoubtedly be criticized by those who don’t like the ex-president. Chubb Insurance found that out when it underwrote a much smaller bond in E. Jean Carroll’s defamation suit against him. Chubb’s chief executive, Evan Greenberg, was forced to put out a
letter saying, “We don’t take sides, it would be wrong for us to do so, and we are in no way supporting the defendant.”
But you don’t need to look to politics to understand why Trump’s lawyers
said Monday that it was a “practical impossibility” to secure a bond allowing him to appeal the $454 million judgment against him. There’s a much simpler explanation: insurance regulation.
dude if you post articles behind a paywall post the article to prove your point.
notice the first paragraph above? which is all i could "screen grab"?
this is the real reason Trump is having trouble getting a bond
these outfits fear the backlash
He doesn't necessarily need an insurance company. If he comes up with $455 million, he can pay the fine, then appeal to try to get the money back. That would have the advantage of stopping the interest, which is accumulating at $112,000 per day according to Winn Dixie. Bloomberg has Trump's real time net worth at $2.3 billion. Forbes has it at $2.6 billion, although that's before the $455 million judgement passed down by Engoron, and the $90 some odd million due E. Jean Carroll. If he's worth $2.3 billion, you'd think he could borrow $455 million and pay the fine. He could pay down the loan by selling real estate, without having to conduct a fire sale. If the Trump Media/Trump Social merger goes through, he'll have around $3 billion of stock around the current share price and can sell some of that. And another possibility is the award gets reduced on appeal.
Originally Posted by Tiny
exactly. to the shock of a few here but not those savvy on high net worth individuals is that most billionaires don't have hundreds of millions of dollars in cash laying around. they have it in various investments making money for them.
billy grates probably doesn't have 500 MILLION in cash laying around. neither does Elon Muskrat or Jeffy BezoTard.
all of them would need to sell off assets to raise that kind of cash.
as Tiny knows, those who claim this means Trump isn't a billionaire are wrong. they are just cackling to satisfy their tds
