New York AG questions financial strength of company that posted Trump's bond
Summary
TLDRThe New York Attorney General has raised concerns about the financial strength of the company that posted Donald Trump's $175 million bond, questioning its ability to cover the cost. The company, not admitted under New York's Department of Financial Service, has been asked to provide justification of the surety, detailing the collateralization and specific identifiable assets. If the bond is deemed insufficient, Trump will need to obtain a new undertaking to prevent enforcement actions, which could include asset seizures, while he appeals the judgment.
Takeaways
- 📢 The New York Attorney General has filed notice regarding Donald Trump's civil fraud case, questioning the financial strength of the company that posted his bond.
- 💰 The bond in question is for $175 million, not $175,000 as initially mentioned in the conversation.
- 🔍 The company, Night Specialty Insurance Company, has over $537 million in assets as of December 31, 2023, but the Attorney General's office is concerned about the cash on hand.
- 🏦 The Attorney General's office is seeking justification of the surety, meaning they want to know the specific identifiable assets that back the bond.
- 🤝 The company is not admitted under New York's Department of Financial Service, hence the request for additional information on the bond's collateralization.
- 🏛️ If the court finds the bond insufficient, Trump will have to obtain a new undertaking to prevent the enforcement of the judgment while he appeals.
- 🚨 Enforcement could involve seizing assets, including bank accounts and obtaining ownership of assets that are free and clear from other mortgages.
- 🕒 Trump has a stay, but it is conditional on his having posted the $175 million bond. If the bond is deemed insufficient, he must obtain a replacement.
- 🔄 The situation highlights potential complications and delays in legal cases, impacting the political calendar and requiring attention from involved parties.
- 🤔 The Attorney General's office prefers not to engage in real estate transactions or conduct a fire sale, seeking a clear path to enforce the judgment without complications.
Q & A
What is the main issue with Donald Trump's civil fraud case?
-The main issue is the New York Attorney General's office questioning the financial strength of the company that posted Trump's bond, specifically whether it can sufficiently cover the cost of the $175 million bond.
What was the corrected version of the bond filed by the insurance company?
-The corrected version of the bond included the insurance company's financial statements, showing over $537 million in assets as of December 31, 2023.
Why is the Attorney General's office concerned about the cash on hand of the insurance company?
-The concern is that the cash on hand is less than the bond amount, and the company is not admitted under New York's Department of Financial Service, hence not being a New York insurer. This raises questions about the collateralization and the specific identifiable assets that would ensure the bond is covered.
What does 'justification of the surety' mean in this context?
-In this context, 'justification of the surety' refers to the documentation and evidence required by the Attorney General's office to understand how the bond is collateralized and which specific assets are being used to ensure the bond's coverage.
What potential problems did Donald Trump face with his assets?
-Trump faced issues with the liquidity of his assets, meaning how quickly he could sell them if needed, and whether they would be worth enough to cover the bond. Additionally, many of his assets were encumbered with existing debts, preventing him from using them as collateral.
What is the role of the surety in this case?
-The surety, in this case, is the Night Specialty Insurance Company that has signed the bond. They are responsible for ensuring that if Trump wins on appeal, the surety will cover the bond amount, which stands at $175 million.
What are the consequences if the insurance company's bond is deemed insufficient?
-If the bond is deemed insufficient, Trump would have to obtain a new undertaking to prevent Tish James from enforcing the judgment while he appeals. If he fails to post an adequate bond, enforcement actions such as seizing assets or bank accounts could take place.
What is the significance of the ten-day period mentioned in the script?
-The ten-day period is the time frame within which the insurance company must file the 'justification of the surety' to explain the collateralization of the bond. After this, a hearing will take place where the surety can come forward to present their case.
What could the enforcement of the judgment mean for Donald Trump?
-Enforcement of the judgment could involve seizing Trump's assets or bank accounts, or obtaining ownership of assets that are free and clear of other mortgages. This would be done to satisfy the financial judgment against him.
How does this case relate to the political calendar mentioned in the script?
-The case could have an impact on the political calendar as it requires Donald Trump's attention and resources, potentially affecting his political activities or campaigns. The complications and delays in the case could create additional challenges for him in the political sphere.
Outlines
📢 Breaking News on Trump's Civil Fraud Case
The New York Attorney General has raised concerns about the financial strength of the company that posted Donald Trump's $175 million bond, questioning its ability to cover the cost. MSNBC legal correspondent Lisa Rubin is closely following the developments. The bond in question was filed by Night Specialty Insurance Company, which is not admitted under New York's Department of Financial Service and thus has to provide justification of the surety. The company's assets as of December 31, 2023, were over $537 million, but the cash on hand is less than the bond amount. The Attorney General's office wants to know the specifics of the collateralization and the identifiable assets that ensure the $175 million bond and the potential judgment value will be covered if they win the appeal. Trump's own assets have been a point of contention, with many encumbered and not readily available to cover the bond. The Attorney General's office is seeking clarity on the collateral and the ability to seize assets if the bond is deemed insufficient. This situation has brought Night Specialty Insurance Company and its president, Don Hinky, more directly into the legal proceedings. If the bond is found to be insufficient, Trump will need to obtain a new undertaking to prevent the enforcement of the judgment while he appeals.
🤔 Impact on Trump's Political Calendar
The unfolding legal issues surrounding Donald Trump's civil fraud case are taking time and attention away from his political activities. As the case becomes more complicated, with delays and unforeseen developments, it could potentially affect the political calendar and Trump's own political aspirations. The legal complications and the need for constant attention to the case may hinder his ability to focus on political strategies and campaigns. This situation highlights the challenges that can arise when legal matters intersect with political ambitions, and the potential consequences for individuals involved in high-profile cases.
Mindmap
Keywords
💡Civil Fraud Case
💡New York Attorney General
💡Financial Statements
💡Surety
💡Collateralized
💡Liquid Assets
💡Encumbered Assets
💡Amite Shaw
💡Justification of the Surety
💡Enforcing the Judgment
💡Political Calendar
Highlights
New York Attorney General files notice questioning the financial strength of the company that posted Trump's bond.
The bond in question is for $175 million, not $175,000 as initially stated.
The company, Night Specialty Insurance Company, has over $537 million in assets as of December 31, 2023.
The Attorney General's office is concerned about the cash on hand being less than the bond amount.
Night Specialty Insurance Company is not admitted under New York's Department of Financial Service and is not a New York insurer.
The Attorney General's office is entitled to ask for a justification of the surety, meaning they want to know the collateralization details.
There are questions about the liquidity of Trump's assets and whether they can be quickly sold to cover the bond.
Many of Trump's assets were encumbered and couldn't be pledged due to existing liens.
Trump chose Night Specialty Insurance Company as his surety due to his own liquidity and collateralization problems.
The Attorney General's office is not satisfied with the bond filed and wants further assurance.
Night Specialty Insurance Company has ten days to file a justification of the surety and explain the collateralization.
If the bond is deemed insufficient, Trump will have to obtain a new undertaking to prevent enforcement of the judgment while he appeals.
Enforcement could involve seizing assets, bank accounts, or obtaining ownership of free and clear assets.
Both the Attorney General's office and Trump prefer to avoid a situation where assets need to be seized or sold.
This case highlights the potential impact of criminal cases on the political calendar and the complications that can arise.
The situation with the bond and the insurance company brings additional scrutiny and involvement for Night Specialty and its president, Don Hinky.
The Attorney General's office is focused on law enforcement and is not interested in conducting a fire sale of Trump's assets.
Transcripts
>>> BREAKING NEWS IN DONALD
>>> BREAKING NEWS IN DONALD
TRUMP'S CIVIL FRAUD CASE.
THE NEW YORK ATTORNEY GENERAL
HAS FILED NOTICE QUESTIONING
ESSENTIALLY THE FINANCIAL
STRENGTH OF THE COMPANY THAT
POSTED HIS BOND AND WHETHER IT
CAN COVER THE COST.
I WANT TO BRING BACK MSNBC LEGAL
CORRESPONDENT LISA RUBIN WHO IS
FRANTICALLY LOOKING AT HER PHONE
BECAUSE THIS IS LITERALLY JUST
BREAKING.
SO THIS IS THE $175,000, RIGHT?
>> $175 MILLION.
>> IF ONLY IT WAS $175,000,
DONALD TRUMP IS SAYING.
$175 MILLION, SO THERE'S A
QUESTION ABOUT WHETHER THEY'RE
REALLY COVERING IT IN A
SUFFICIENT WAY, IS THAT IT?
>> LET'S GO BACK FOR A SECOND.
SO THIS MORNING, NIGHT SPECIALTY
INSURANCE COMPANY FILED A
CORRECTED VERSION OF THE BOND
THAT ATTACHED AMONG OTHER THINGS
ITS FINANCIAL STATEMENTS.
AND SHOWED WHAT ITS ASSETS WERE
AS OF THE END OF LAST YEAR.
THAT'S DECEMBER 31st, 2023.
IT HAS OVER $537 MILLION IN
ASSETS, AND WHAT THE ATTORNEY
GENERAL'S OFFICE IS SAYING, THE
CASH IT HAS ON HAND IS LESS THAN
THE BOND AND THEY NEED TO KNOW
BECAUSE SPECIFICALLY THIS
COMPANY IS NOT ADMITTED UNDER
NEW YORK'S DEPARTMENT OF
FINANCIAL SERVICE, IT'S NOT A
NEW YORK INSURER, AND BECAUSE IT
DOESN'T HAVE QUALIFICATIONS IN
NEW YORK STATE, THEY ARE
ENTITLED TO ASK FOR WHAT'S
CALLED JUSTIFICATION OF THE
SURETY.
THAT MEANS AMONG OTHER THINGS,
CHRIS, THAT THEY WANT TO KNOW
HOW IS THIS COLLATERALIZED?
WHAT ARE THE SPECIFIC
IDENTIFIABLE U ASSETS THAT
DONALD TRUMP POSTED TO ENSURE
THAT IF THEY WIN ON APPEAL, THEY
WILL GET BACK THIS $175 MILLION
AND UP TO THE VALUE OF THE
JUDGMENT THAT JUDGE ENGORON HAD
ORDERED, WHICH AT THIS POINT
STANDS OVER 500 -- I'M SORRY,
$454 MILLION IF THAT JUDGMENT'S
UPHELD.
>> WASN'T THAT SIMILAR TO THE
PROBLEM DONALD TRUMP HIMSELF
FACED?
BECAUSE HE CLEARLY HAS A LOT OF
ASSETS.
THE QUESTION OF ARE THEY LIQUID
ASSETS, HOW QUICKLY, FOR
EXAMPLE, IF HE NEEDED TO COULD
HE SELL SOMETHING, AND WOULD IT
BE WORTH WHAT --
>> CORRECT.
>> -- WOULD BE NEEDED TO COVER
THE BOND.
>> HE HAD OTHER PROBLEMS TOO, A
LOT OF THOSE ASSETS WERE
ENCUMBERED AND HE COULDN'T
PLEDGE THEM BECAUSE THERE WAS
ALREADY SOMEBODY IN LINE.
IF YOU OWE A $125 MILLION
MORTGAGE, FOR EXAMPLE, TO AN
EXISTING LENNEDDER YOU CAN'T GIV
THAT OVER TO THE ATTORNEY
GENERAL FIRST WHEN YOU'VE GOT
SOMEBODY IN LINE.
THAT IS A SIMILAR PROBLEM.
TRUMP HAD EVEN GREATER PROBLEMS
ON HIS OWN, WHICH IS WHY HE WENT
TONIGHT SPECIALTY INSURANCE
COMPANY AS HIS SURE TER HERE.
HERE YOU SEE THE ATTORNEY
GENERAL'S OFFICE SAYING WHAT YOU
FILED THIS MORNING IS STILL NOT
ENOUGH TO SATISFY US THAT YOU
HAVE POSTED A BOND THAT IS
SUFFICIENT TO COVER OUR JUDGMENT
IF AND WHEN WE WIN ON APPEAL.
>> SO NOW WHAT HAPPENS?
>> THEY HAVE TEN DAYS TO FILE
WHAT'S CALLED A JUSTIFICATION OF
THE SURETY, AND THEN THERE WILL
BE, IN ADDITION TO THE MOTION
PRACTICE, A HEARING AT WHICH THE
SURE TER
SURETER CAN COME FORWARD.
THEY HAVE COPIED AMITE SHAW
WHO'S PRESIDENT OF THE NIGHT
SPECIALTY INSURANCE COMPANY SIGN
THE BOND.
HE IS COPIED HERE BECAUSE HE IS
BASICALLY THE PERSON ON WHOM
THIS IS BEING SERVED.
YOU WILL SHOW UP.
YOU WILL FILE THESE DOCUMENTS TO
EXPLAIN TO US HOW THIS IS
COLLATERALIZED.
THIS IS BRINGING DON HINKY AND
HIS COMPANY A WHOLE LOT MORE
INTO THIS MESS THAN I FEAR THEY
ANTICIPATED.
>> OKAY, SO THEN THE QUESTION
BECOMES WHAT IF -- WE DON'T KNOW
WHAT'S GOING TO HAPPEN, BUT WHAT
IF THE DECISION IS, NO, THIS
ISN'T GOOD?
>> SO IF IT'S NOT, IF IT'S NOT
GOOD, THEN TRUMP WILL HAVE TO
OBTAIN A NEW UNDERTAKING TO
PREVENT TISH JAMES FROM
ENFORCING ON THE JUDGMENT WHILE
HE APPEALS.
RIGHT NOW HE HAS A STAY, BUT
THAT STAY IS CONDITIONAL ON HIS
HAVING POSTED THIS 17 58DS$175 M
BOND.
IF THIS BOND ISN'T SUFFICIENT,
ACCORDING TO A COURT, TRUMP WILL
HAVE TO OBTAIN ANOTHER ONE IN
LIEU OF IT.
>> REMIND US WHAT ENFORCING
MIGHT MEAN.
>> ENFORCING COULD MEAN SEIZING
ASSETS.
IT COULD MEAN, FOR EXAMPLE,
SEIZING BANK ACCOUNTS.
IT COULD ALSO MEAN TAKING STEPS
TO OBTAIN THE OWNERSHIP OF
ASSETS THAT ARE FREE AND CLEAR
FROM OTHER MORTGAGES,.
IN THE PERFECT WORLD, TISH JAMES
DOESN'T WANT TO GET INTO A WAR
WITH OTHER LENDERS TO WHOM
DONALD TRUMP ALREADY OWES MONEY.
SHE'D RATHER TAKE POSSESSION OF
ASSETS OR PROPERTIES THAT ARE
FREE AND CLEAR OF OTHER DEMANDS,
BUT SHE NEVER WANTED TO GET INTO
THAT BUSINESS IN THE FIRST
PLACE, WHICH IS WHY THE SURETY
IS A GOOD OPTION FOR THE
ATTORNEY GENERAL'S OFFICE AS
WELL.
THEY ARE A LAW ENFORCEMENT
OFFICE.
THEY ARE NOT A REAL ESTATE
AGENCY.
THEY ARE NOT INTERESTED IN
CONDUCTING A FIRE SALE ANY MORE
THAN DONALD TRUMP WANTS TO HOST
ONE HIMSELF. >> WELL, THIS IS A PERFECT
>> WELL, THIS IS A PERFECT
EXAMPLE EARLY IN THIS WHOLE
PROCESS WHEN WE KNEW THERE WERE
FOUR CRIMINAL CASES, WHAT IMPACT
IT MIGHT HAVE ON THE POLITICAL
CALENDAR, AND ONE OF THE THINGS
FOLKS LIKE YOU SAID WAS THESE
CASES CAN GET COMPLICATED.
THERE CAN BE DELAYS.
THERE CAN BE THINGS LIKE THIS
THAT HAPPEN AND NOW IT'S ANOTHER
THING THAT'S TAKING TIME AND
ATTENTION FOR DONALD TRUMP AND
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