Trump’s $454 Million Judgment Deadline
The Race Against Time
Former President Donald J. Trump faces a critical deadline as a $454 million judgment hangs over him, raising the specter of a financial crisis. New York attorney general, Letitia James, who accused Trump of inflating his net worth fraudulently, holds the power to freeze his bank accounts and seize his properties.
Countdown to Consequences
Under New York law, once the judgment became final, James could enforce it immediately, but she granted a 30-day grace period, ending on Monday. While James could take action at any time, she is unlikely to act aggressively on Monday.
Impending Financial Strain
If James moves forward, it could spell trouble for Trump’s family business, potentially draining cash reserves and marking the end of his New York business ventures. The legal process to mitigate the judgment’s impact is arduous, with potential significant losses for Trump.
Seeking a Lifeline
To avert the looming crisis, Trump must secure a bond worth half a billion dollars, requiring substantial collateral. However, much of his wealth is tied up in real estate, making it challenging to find a company willing to provide the necessary bond.
Options on the Table
Trump is banking on an appeals court decision to pause the judgment or reduce the bond amount. While he waits, he may explore quick asset sales, loans, or even leverage his stake in a social media company’s IPO to meet the bond requirements.
Bankruptcy as a Last Resort
If all else fails, Trump could consider bankruptcy for the implicated entities, although this move would only temporarily shield him from the judgment. Ultimately, James would likely hold him accountable for the debts.
Legal Battle Looms
Despite ongoing appeals and efforts to mitigate the judgment’s impact, Trump is facing a challenging legal battle against James and the court system. The outcome remains uncertain as the deadline approaches.
Read More of this Story at www.nytimes.com – 2024-03-25 12:06:43
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