Trump Secures Reduced Bond at $174 Million with Knight Specialty Insurance Sponsorship
Source: NPR
In a recent development, New York Attorney General Letitia James has raised questions about the financial stability of the company that backed Donald Trump’s bond, following a substantial legal judgment against him. Judge Arthur Engoron is now involved in assessing the concerns brought forth regarding the solvency of Knight Speciality Insurance Company, the entity that underwrote Trump’s bond.
Donald Trump, who faced a liability ruling amounting to $454 million in damages, which later increased due to interest, successfully petitioned the court to lower the bond to $174 million. To meet this requirement, Trump aligned with Knight Speciality Insurance Company to sponsor the bond.
However, the Attorney General has flagged potential issues with this arrangement, emphasizing that Knight Speciality might be operating in New York without the requisite certification that ensures its financial stability and ability to underwrite such significant amounts, told the Hill.
In her legal filing, James highlighted that New York’s regulatory standards demand that insurers demonstrate their solvency and reliability to uphold the contracts they engage in. Given Knight Speciality’s California-based operations, there’s a lack of direct oversight by New York regulators, which has led to concerns about whether the company can feasibly cover the extensive sum owed by Trump should he lose his appeal.
The situation gained further complexity when Knight Speciality presented documents to the court indicating its assets totaled $537 million as of December 31, 2023. This move prompted discussions on the specifics of the assets Trump has put forth to secure the bond, ensuring that the insurance company can reimburse the bond value and potentially the entire judgment amount, should the original ruling by Judge Engoron stand.
MSNBC legal analyst Lisa Rubin has voiced inquiries regarding the exact nature of the assets Trump has offered as collateral against the bond, emphasizing the need for transparency in confirming the insurance company’s capacity to cover the substantial sum. Knight Speciality Insurance has been given a ten-day window to address the concerns raised by the Attorney General’s Office. Meanwhile, Judge Engoron has scheduled a court hearing for April 22 at 10 a.m. E.S.T. to delve deeper into the matter.
This case is further complicated by Trump’s indirect political connections to the CEO of the Knight company, who also holds a majority stake in Axos Bank. This bank is notably involved in refinancing two of Trump’s properties, adding another layer to the intricate legal and financial web surrounding this case.
