The massive $350 million-plus judgment rendered against former President Donald Trump on Friday in the civil lawsuit brought by New York Attorney General Letitia James is a double whammy.
Paying such enormous damages seriously depletes the net worth of even a self-proclaimed billionaire. More devastating to Trump, the court’s decision eviscerates his public image as a shrewd New York real estate mogul — an image he has carefully cultivated for decades.
And there’s more.
Yet the enormous damages are not the only blow to Trump’s pocketbook.
The massive financial headaches for Trump are just beginning. Before he can appeal the verdict, Trump will have to post a bond or pledge assets that could tally close to $400 million, equal to the verdict plus 9% post-judgment interest. This assures that if Trump loses the appeal, the state of New York will collect the money.
A business litigation observer previously told NBC News that Trump would have to pay a nonrefundable fee of $18 million to obtain a bond (for a $370 million judgment, so slightly more than the actual judgment). Any company putting up the bond will demand collateral.
If Trump needs to pledge any New York properties or assets to the bonding company to secure the appeal bond, an independent monitor appointed by Judge Arthur Engoron would have to be notified by Trump in advance.
Engoron’s decision also blocked Trump from borrowing money from any financial institution chartered to do business in New York — America’s financial center. Yet the enormous damages are not the only blow to Trump’s pocketbook. The New York trial court barred Trump from being an officer or director of any New York entity, including the Trump Organization, for three years.
Engoron imposed a similar ban on Donald Trump Jr. and Eric Trump for two years and ordered each to pay more than $4 million to the state.
Engoron ruled last September that the Trump Organization used financial statements containing fraudulent asset valuations to…
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