New York Attorney General Letitia James on Friday filed a memorandum of opposition to the surety company that holds the $175 million bond for former President Donald Trump as he appeals the $460 million decision against him in the civil fraud trial earlier this year.
The attorney general’s office says it is concerned about the financials of the bondholder, Knight Specialty Insurance company, and the collateral for the bond.
The $175 million in cash that Trump claims to have provided as collateral in a bank account is in the DJT Revocable Trust and not under Knight’s control, as it should be, the attorney general’s office argued. Because Trump still has access to the funds, he’s still able to make withdrawals, or replace the funds with other assets that could fluctuate with the markets. And if the value drops below $175 million, the bond is no longer secured, according to the attorney general.
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This is the best summary I could come up with:
New York Attorney General Letitia James on Friday filed a memorandum of opposition to the surety company that holds the $175 million bond for former President Donald Trump as he appeals the $460 million decision against him in the civil fraud trial earlier this year.
The attorney general’s office says it is concerned about the financials of the bondholder, Knight Specialty Insurance company, and the collateral for the bond.
The $175 million in cash that Trump claims to have provided as collateral in a bank account is in the DJT Revocable Trust and not under Knight’s control, as it should be, the attorney general’s office argued.
The attorney general’s memorandum argued that Knight falls short on several requirements for a surety bondholder.
The attorney general also said that Knight relies on risk transfer practices that work to “artificially” bolster its surplus.
James also argues that Knight’s management is untrustworthy, violating federal law "on multiple occasions over the last several years.
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