Former President Donald Trump is facing challenges in obtaining an appeal bond for the civil matter brought against him by New York Attorney General Letitia James. Court documents filed this week reveal that Trump and his co-defendants have encountered “insurmountable difficulties” in securing a $454 million bond, as nearly 30 insurance companies have declined to underwrite it. One of the reasons cited by lawyers for Trump is that real estate would not be accepted as collateral.
Experts in the bond industry point out that another potential obstacle is the risk of negative publicity. The issuing of the bond could create a negative reaction for an insurance company, leading to potential blowback and damage to their reputation. Neil Pedersen, owner of Pedersen & Sons Surety Bond Agency Inc., explains that Trump is a polarizing figure, and this makes it challenging for insurance companies to take a stance on his behalf.
Earlier this month, insurance company Chubb posted a $92 million appeal bond for Trump in a federal defamation case. The decision raised concerns among investors, prompting Chubb’s CEO Evan Greenberg to defend the company’s action in a letter to investors. Greenberg emphasized that Chubb does not take sides and supports the rule of law. He stated that issuing the bond was the right thing to do, regardless of personal feelings towards Trump.
However, the blowback experienced by Chubb due to their decision has made other insurance companies hesitant to follow suit. Alex Hanley, CEO of Jurisco Surety Bonds, believes that given the negative consequences Chubb faced, it is unlikely that another surety will be willing to underwrite the bond.
Trump addressed the bond issue while speaking outside a polling site in Palm Beach, Florida. He highlighted his success in building a great company with exceptional real estate assets and expressed confidence in his ability to meet the bond requirements. Trump’s lawyers have also requested the court to reduce the amount of the bond necessary to stay the enforcement of the judgment.
In conclusion, former President Trump is facing significant challenges in securing the appeal bond for the civil matter brought against him by Attorney General Letitia James. The refusal of nearly 30 insurance companies to underwrite the bond, along with the potential negative publicity associated with it, has made the process difficult. While Trump remains confident in his assets and ability to meet the bond requirements, it is uncertain whether another surety will be willing to take on the risk.
