quote:
if Trump had $175mm in cash to give to Knight Insurance to “cover” the bond, why not just deposit those funds in the registry of the court, and thereby avoid this entire debacle, Including payment of a bonding fee to Knight?

Trump may have $175m in cash, but why tie up his money while this gets appealed. That could take years.

The bond is essentially an insurance policy. The purchase of which is paid via a premium. In this case the surety company charges a rate based on the side of the bond.

If I had to guess the sure company charged 3% of the bond amount ($175m). Thus, the bond cost Trump around $5,250,000.

The carrier keeps the premium for posting the bond.

So in essence the surety company just made $5,250,000 in profit off of trump.

He’s not defaulting on the bond and he pledged significant cash assets to make the surety would be made whole should he default and they have to pay the $175m.

It was a no brainer from the surety pout of view.

0% chance of risk and they make $5m

This post was edited on 4/22/24 at 3:42 pm

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Posted by OzonaOkapi

Patrolling the Edwards Plateau

Member since Apr 2024

400 posts

Posted on 4/22/24 at 3:42 pm to Covingtontiger77

quote:
Trump may have $175m in cash, but why tie up his money while this gets appealed. That could take years. The bond is essentially an insurance policy.

if this were a “normal“ bond, you would be correct. You have apparently missed the part where Trump has argued (repeatedly) that he gave his insurance company $175mm in cash to “cover“ the bond.

either Trump is lying, or this is not a normal surety bonding situation.

This post was edited on 4/22/24 at 4:12 pm

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