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.
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.
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.
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.
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
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.
For historical reference.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.
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.
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.
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.
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