And surprisingly, the Trump team restarted negotiations last week, asking Mr. Hankey if he supported the new amount. Hankey readily agreed. He said his company charges Trump a “modest fee,” which he did not specify, but the arrangement allows Trump to keep his own funds. “At least he’s getting interest on the collateral,” he added.
With the bond, Trump posted on Monday that Hankey confirmed weeks ago that the New York attorney general would recover Trump’s assets, and that experts are wondering if Trump should file for bankruptcy. He appears to have helped Mr. Trump take the last step to escape from the financial difficulties he had been having doubts about. He was fined more than $500 million in two civil lawsuits and had just weeks to find the money.
According to Forbes, who has worked his way up from a car salesman to a major corporation, Hankey’s financial backing has propelled him into the midst of the presidential race, earning him $7.4 billion. It is said that this has brought new national recognition to the versatile 80-year-old, who has many values. A figure in the auto loan industry and owner of Xanadu, formerly Olivia Newton-John’s Malibu mansion. If Trump is elected, the relationship could come under new scrutiny if the government becomes involved in matters affecting Hankey’s business.
Mr. Hankey said the bond was provided by a subsidiary of one of his companies, Knight Insurance, and was not a political statement but a good business deal.
“I’m the chairman of the board of several companies, and we just do business and stay out of political issues and taking sides,” said Trump supporter. Hankey said. I don’t consider myself a major supporter, although I think I will in the future. ” He said much of his own donations go to Republicans, but he also gives to Democrats.
Mr. Hankey also said in a New York civil lawsuit that he provided Mr. Trump with bonds in part because he was convicted of committing fraud by overvaluing his assets and obtaining loans at lower-than-normal interest rates. He also said it was because he agreed to defend the former president. . Mr. Trump insisted that even though property values had been inflated, it was common practice and that the loans had been repaid in full.
Mr. Hankey said that one of his businesses, Westlake Financial Services, provides loans to 1.5 million customers and that “when credit statements and financial statements are submitted to us, some Too often, the value of assets is overstated.” …I think it probably occurs in his 75% of our applications. ”
The Trump campaign did not respond to a request for comment, instead referring to the former president’s posts on his social network Truth Social, in which he wrote that he was “going to New York state to appeal the state’s corrupt decision.” I had to pay money.” A biased, crooked, and deeply overturned judge. ”
Mr. Hankey is also the largest non-institutional individual shareholder in Axos Bank, a little-known online company that is expected to open in 2022 and many of Mr. Trump’s longtime lenders to the U.S. president in January. It provided $225 million in critical loans to keep Trump’s businesses afloat after they severed ties in the aftermath of the election. 6, 2021, the attack on the U.S. Capitol. Hankey said he didn’t know about the Axos loan until it was provided to the Trump Organization. Axos’ president and chief executive officer previously told the Post that he approved the loan because it was in the bank’s interest, not for political reasons.
Mr. Hankey is not as well-known nationally as other billionaire supporters of Mr. Trump, but he is a prominent figure in California, where his best-known business is offering high-interest auto loans to customers with poor credit. It was focused on providing. He recalled having to turn away such customers when he was once a car salesman, so he founded a business that offered high-interest loans to high-risk customers, he said.
a A 2015 article in Forbes describes Hankey calculating how to offer a 23.99 percent loan to a hypothetical customer with a low credit score. At the time, his company had 336,000 car loans outstanding from 23,000 car dealerships, and his company was repossessing 250 cars a day due to repayment issues, according to the article. .
The company provided loans to many customers who couldn’t get loans elsewhere, but the Consumer Financial Protection Bureau found that it may have gone too far.
On October 1, 2015, the agency awarded Westlake Financial Services and another company, Wilshire Consumer Credit, $44.1 million in relief to customers for what the agency called “illegal debts.” It was announced that the company was ordered to pay $4.25 million in civil penalties. Collection tactics. ” Hankey was not named in the news release and was not accused of wrongdoing. Hankey said in an interview that the companies relied on “electronic programs” and that he didn’t believe they did anything wrong.
In the bank lawsuit brought by New York Attorney General Letitia James (D), state Supreme Court Justice Arthur Engoron ruled in February that President Trump, several of his companies, his two eldest sons and former executives , found him civilly liable for fraud for lying about President Trump. Find out the true value of his assets to get a better rate.
Lawyers and family members for the Trump Organization argued that the company engaged in normal business practices and that the judge’s fine was grossly excessive and should be waived or reduced.
After the Engoron ruling, President Trump moved to appeal, but before that, $450 million is needed to maintain or pay the fine. Weeks later, Trump’s lawyers said in court that Trump had approached 30 surety companies but none were available.
However, the Hankies had already begun discussing a possible deal. Hankey said his wife, Debbie, first offered to put up the deposit, and then contacted a friend who knew about the campaign and connected him with Hankey.
A series of negotiations quickly began, but last week a New York appellate court panel ruled that Trump only needed $175 million to appeal.
“I thought the negotiations were over,” Hankey said. “And the Trump Organization thanked me.”
But Trump’s company soon reached out again. “They called back and asked if we would like to issue bonds for $175 million,” he said.
The new transaction took only a few days to complete.
By issuing $175 million in bonds on Monday, Mr. Trump appears to be trying to emerge, at least for now, from a financial crisis that looked very unsustainable just weeks ago, and experts say he has I suspected he would file for bankruptcy.
Instead, he obtained stays on two of the most difficult civil cases against him without forfeiture or sale of any assets. He also didn’t have to touch his stake in social media company Trump Media and Technology Group. Despite the recent decline in stock prices, the stock was still worth about $4 billion as of Tuesday afternoon.
Nevertheless, depending on how the appeals process plays out, Mr. Trump could still face significant judgments not only in the banking case, but also in an unrelated defamation case in which his insurance company posted a $91 million bond.
By using bail and the appellate process, Mr. Trump gave himself an additional opportunity to make his case in front of various judges in court, and, perhaps most importantly, ultimately gave him Gained more time to pay the fines imposed.
Robert E. Mulchman, a New York lawyer who has followed the banking case for years, said the appeals court’s decision to reduce the bond gave Trump a lifeline, and that James likely won’t have a girlfriend until long after the election. He said the lawsuit would have to proceed. Appeals Process.
Marchman said Trump could still face full punishment even if he returns to the White House.
“He may become president of the United States again, but that will not affect his civil judgment,” he said.
He said Mr. Trump remains under the authority of his court monitor, former Judge Barbara S. Jones, who must approve major financial transactions by the Trump Organization. In addition, the funds provided as collateral for the bonds may not be used for other purposes, which may result in financial hardship. “It’s $175 million and we can’t spend it on anything else,” Mulchman said.
Hankey said he has never spoken to President Trump. But after the bond deal was made public, he heard from one of Trump’s sons who effectively runs the company.
“I spoke to Eric Trump this morning,” Hankey said. “He called me and thanked me for posting the bond.”
Razan Nakrawi contributed to this report.
