In response to objections from New York’s attorney general, representatives for the firm that posted a $175 million bond for Donald Trump argued that the deal is sufficiently backed by the former president’s cash. This filing sets the stage for a court hearing next week in Trump’s New York civil fraud case, where a judge will determine if the bond meets state requirements and allows Trump to appeal a significant civil judgment.
New York Attorney General Letitia James raised concerns about the arrangement, questioning the licensing of Knight Specialty Insurance Company, which is owned by billionaire Trump supporter Don Hankey. Despite the objections, Trump’s representatives maintain that the bond is secured by Trump’s Charles Schwab brokerage account containing over $175 million in cash. While some experts believe the filing addresses some concerns, others, like former New York assistant attorney general Adam Pollock, argue that the complexities of the bond arrangement may prompt further scrutiny by the court.
The filing also raised questions about a document referring to an agreement with a different company for a $91 million bond in a separate case, which was later attributed to a mistake. Despite this, Hankey expressed confidence that the court filing resolves James’s concerns and defended his decision to back the bond. Trump’s agreement with Knight includes granting them control of the funds and a provision for Trump to replenish the account if it falls below the $175 million mark, ensuring the bond’s security.