Billionaire whose firm backed Trump's $175 million bond reveals how the deal came together
Source: CNN Business
Updated 2:53 PM EDT, Tue April 2, 2024
CNN Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, told CNN on Tuesday that the deal to underwrite former President Donald Trumps $175 million bond in New York came together quickly and that Trump posted all cash as collateral. Its what we do. Im happy to do it. We would have done it for anybody else, Hankey said in a phone interview. It was an easy transaction. It was put together very quickly.
Based in California, Knight Specialty Insurance is known for providing subprime auto loans to car buyers with weaker credit scores. Hankey, who has supported Trumps presidential campaigns, said initially he reached out to the Trump Organization last month when the former president was having trouble putting together a bond of $464 million. Hankey has amassed a fortune that Forbes values at $7.4 billion.
We had a conversation about putting together a bond of that size, Hankey told CNN. After the amount of the bond was slashed to $175 million by a New York appeals court, the Trump team eventually reached back out to Knight Specialty, according to Hankey.
At first, Trump planned to post a mix of investment-grade bonds and cash as collateral (80% bonds and 20% cash), Hankey said. Although Knight Specialty received the bonds and approved them, he said they were not posted in the end. Ultimately, he put up all cash, Hankey said, adding that he does not know where the $175 million in cash that Trump posted came from.
Read more: https://www.cnn.com/2024/04/02/investing/trump-bond-firm/index.html
yankee87
(2,427 posts)The money TFG got is from his master, Putin.
hlthe2b
(107,141 posts)pfitz59
(11,071 posts)surely must be an FEC violation
mucifer
(24,946 posts)brooklynite
(96,882 posts)I dont care what people imagine Trump WANTS to do. You cant reroute $17.5 M from an FEC campaign account. Someone whos not Trump will have to report the outflow and wont want to go to jail. Also, an outflow that large would be a huge hit to what the campaign is doing.
peppertree
(22,850 posts)Where all enforcement is essentially blocked by one party at will and at whim - and with no recourse.
moniss
(6,243 posts)in the least about an FEC fine. At his age by the time a fine would even be levied he may likely be gone. I agree with you about underlings being reluctant. But I believe they would try to justify all of this as simply paying his "legal costs" and fighting in court to defend including the bond in that definition.
brooklynite
(96,882 posts)moniss
(6,243 posts)get "corrected" even years after an original filing. Things suddenly appear that weren't there before.
brooklynite
(96,882 posts)But if people want to imagine conspiracies, nothing will stop them.
moniss
(6,243 posts)a conspiracy. I don't know which one you might be referring to but I do know we can point to several instances of fraudulent conduct by this fellow that far exceed $17 million. He didn't stop after the first crooked scam so why would he be bothered now?
brooklynite
(96,882 posts)Whether or not you imagine he's cheating, and whether or not you believe the FEC will act on fraud, the money in still has to be matched to the money out.
moniss
(6,243 posts)and out and yet are filled with lies about the what, the who and the why.
cab67
(3,245 posts)He may not care, but I would imagine there are others involved who would.
moniss
(6,243 posts)also slush the money through various "consulting" firm contracts and some finds it's way back under the table so to speak to the candidate or to a financial firm who then "loans" money to the candidate on a personal basis.
gilpo
(712 posts)It's critical to know who TFG owes.
eggplant
(4,011 posts)why wouldn't he just put up the cash with the court?
or is it because he didn't /actually/ hand the cash over to this guy, just showed him that it theoretically existed?
the question of financial back and forth in this can be very suspicious as well.
brooklynite
(96,882 posts)The Bond is generally 10% (plus fees) of the expected total amount.
ToxMarz
(2,256 posts)but it wouldn't have been Trumps cash as you said because he could do that himself. He had to go through the bond to hide/launder the source of the money.
JoseBalow
(5,880 posts)twodogsbarking
(12,283 posts)Cheezoholic
(2,655 posts)moniss
(6,243 posts)requesting a review report from the overseer that is monitoring his NY companies for all significant transaction amounts for the last 6 months at least. Did this group of companies "loan" him money he is simply now handing back? Promise of future business and big "cash flows" from foreign "friends" doing cash real estate deals? Lot's of financial transactions to profit from to more than make back the $175 million? Has there been some recent huge deposits in the bank? Big transfers? Lots of questions.
gab13by13
(25,564 posts)That comes from Hankeys mouth.
Trump moved money a year ago to Axos bank.
SouthernDem4ever
(6,618 posts)catbyte
(36,101 posts)Quelle surprise.
jaxexpat
(7,794 posts)* No legs were broken in the writing of this totally free speech endowed critique. It was an accident, falling down the stairs. Angry stairs.
BTW, did Parker and Stone write this script? Has Cartman set up this whole thing from the beginning?
IbogaProject
(3,895 posts).
iluvtennis
(20,973 posts)Last edited Tue Apr 2, 2024, 10:12 PM - Edit history (1)
cash collateral why did he need Hankey - he could have paid the bond himself. Something smelly here.
drray23
(8,037 posts)Typically you put up 10 % and the bond company assumes the risk for the rest.
iluvtennis
(20,973 posts)dlk
(12,502 posts)Trump is a guaranteed loser.
niyad
(121,031 posts)dlk
(12,502 posts)Its pretty much a given, they will lose their money. Putin has deep pockets, though.
truthisfreedom
(23,332 posts)Or youre doomed to repeat it.
niyad
(121,031 posts)shady dealings. It referred to an article in Roll8ng Stone, 13 March 2022, "The Totally Dodgy Backstory of the Bank That Refinanced t#### tower", by Tim Dickinson and Andy Kroll. Absolutely disgusting. Completely unsurprising. (note: I managed to read the entire sickening article yesterday, but when I went back just now, hit a paywall.)
muriel_volestrangler
(102,740 posts)maxrandb
(16,049 posts)received a "bond" from the subprime auto-loan king.
Nothing to see here, move along.