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How Trump, suddenly strapped for cash, could raise more than half a billion dollars to satisfy judgments against him
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Donald Trump is facing a cash crunch as deadlines are quickly approaching to find over half a billion dollars he owes in judgments.
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[FONT=cnn_sans_display]On Wednesday, a New York appeals court judge refused to give the former president additional time to satisfy a $454 million judgment from a civil fraud case. A federal judge is poised to decide whether to grant Trump’s last-ditch legal effort to delay or post a fraction of an $83.3 million judgment he owes E. Jean Carroll from a defamation case.
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[FONT=cnn_sans_display]The scramble over the past week reveals challenges Trump is facing in raising the combined judgments totaling $537 million. In pleading for relief, Trump’s lawyers told judges it could cost him an additional $104 million to post the bonds – their estimate of fees he would need to pay. Trump’s lawyers said he may have to dump some of his properties under “exigent circumstances” to raise cash quickly, tap the capital markets, or find another source of cash. Last month Trump began hawking $399 gold sneakers.
[/FONT][FONT=cnn_sans_display]“It is a really substantial problem. He’s really between a rock and a hard place,” said Adam Kaufmann, a criminal defense lawyer.
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[FONT=cnn_sans_display]The cash crunch challenges Trump’s long-projected image of a successful businessman with deep pockets and a maverick’s ability to outmaneuver legal and financial troubles. He rode that reputation to the White House in 2016.
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[FONT=cnn_sans_display]Now, the leading Republican presidential candidate in 2024 could end up heavily indebted to a bank, donor, or some other source of capital. Adding to the uncertainty over Trump’s future earnings are the four criminal indictments he is facing.
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[FONT=cnn_sans_display]On Thursday, lawyers for Carroll pointed to Trump’s growing legal issues when urging the judge to reject Trump’s request to delay or lower the amount of the bond in her case.
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[FONT=cnn_sans_display]“If Trump is convicted of even a subset of the 91 felony charges lodged against him, the implications for his ability to satisfy the judgment here could be significant.
And even prior to a conviction, Trump’s ‘brand’— purportedly his most valuable asset, though not one that can easily be utilized to satisfy a civil judgment — may suffer as a result of the various legal proceedings in which he is enmeshed,” Carroll’s lawyers wrote.[/FONT]
[FONT=cnn_sans_display]Trump’s reputation for not paying lawyers and others could impact his ability to raise cash. Trump can post the cash himself or get an appeals bond, which are often backed by cash, or easily tradable securities, but the size of the judgments complicates the process, underwriters say.
[/FONT][FONT=cnn_sans_display]It’s unclear how much cash Trump has on hand. He testified under oath last year that he had more than $400 million in cash. According to the New York attorney general’s office, in 2021 Trump’s 30% stake in a partnership with Vornado, a real estate investment company, was worth about $200 million, but Trump would need to sell that stake to turn it into cash. It’s unlikely Trump would deplete his entire cash position since the properties have bills and payroll.
https://www.cnn.com/2024/03/01/investing/trump-money-judgments/index.html
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[FONT=cnn_sans_display]
Donald Trump is facing a cash crunch as deadlines are quickly approaching to find over half a billion dollars he owes in judgments.
[/FONT]
[FONT=cnn_sans_display]On Wednesday, a New York appeals court judge refused to give the former president additional time to satisfy a $454 million judgment from a civil fraud case. A federal judge is poised to decide whether to grant Trump’s last-ditch legal effort to delay or post a fraction of an $83.3 million judgment he owes E. Jean Carroll from a defamation case.
[/FONT]
[FONT=cnn_sans_display]The scramble over the past week reveals challenges Trump is facing in raising the combined judgments totaling $537 million. In pleading for relief, Trump’s lawyers told judges it could cost him an additional $104 million to post the bonds – their estimate of fees he would need to pay. Trump’s lawyers said he may have to dump some of his properties under “exigent circumstances” to raise cash quickly, tap the capital markets, or find another source of cash. Last month Trump began hawking $399 gold sneakers.
[/FONT][FONT=cnn_sans_display]“It is a really substantial problem. He’s really between a rock and a hard place,” said Adam Kaufmann, a criminal defense lawyer.
[/FONT]
[FONT=cnn_sans_display]The cash crunch challenges Trump’s long-projected image of a successful businessman with deep pockets and a maverick’s ability to outmaneuver legal and financial troubles. He rode that reputation to the White House in 2016.
[/FONT]
[FONT=cnn_sans_display]Now, the leading Republican presidential candidate in 2024 could end up heavily indebted to a bank, donor, or some other source of capital. Adding to the uncertainty over Trump’s future earnings are the four criminal indictments he is facing.
[/FONT]
[FONT=cnn_sans_display]On Thursday, lawyers for Carroll pointed to Trump’s growing legal issues when urging the judge to reject Trump’s request to delay or lower the amount of the bond in her case.
[/FONT]
[FONT=cnn_sans_display]“If Trump is convicted of even a subset of the 91 felony charges lodged against him, the implications for his ability to satisfy the judgment here could be significant.
And even prior to a conviction, Trump’s ‘brand’— purportedly his most valuable asset, though not one that can easily be utilized to satisfy a civil judgment — may suffer as a result of the various legal proceedings in which he is enmeshed,” Carroll’s lawyers wrote.[/FONT]
[FONT=cnn_sans_display]Trump’s reputation for not paying lawyers and others could impact his ability to raise cash. Trump can post the cash himself or get an appeals bond, which are often backed by cash, or easily tradable securities, but the size of the judgments complicates the process, underwriters say.
[/FONT][FONT=cnn_sans_display]It’s unclear how much cash Trump has on hand. He testified under oath last year that he had more than $400 million in cash. According to the New York attorney general’s office, in 2021 Trump’s 30% stake in a partnership with Vornado, a real estate investment company, was worth about $200 million, but Trump would need to sell that stake to turn it into cash. It’s unlikely Trump would deplete his entire cash position since the properties have bills and payroll.
https://www.cnn.com/2024/03/01/investing/trump-money-judgments/index.html
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