It wasn’t that long ago, just before the 2016 presidential election to be exact, that Donald Trump made the following claim: His net worth is “over $10 billion.”
Donald’s humble boast came in a press release as he prepared for his first successful bid for the White House.
Perhaps he used all caps for emphasis.
His wealth and success as a businessman (real estate and reality television) made him well-placed to become president and solve the country’s many problems that the political class was unable to do.
Sure, we all know Trump tends to be a hardliner, but even by his hyperbolic standards, it’s hard to correct what’s happening right now.
He began begging banks and even his staunch MAGA supporters to pay back what should be a pittance for someone with his wealth: Alleged Civil Bank Fraud Case A $454 million civil judgment handed down by a New York state judge in a highly ambitious state attorney general, Tish James.
James’ case is a joke on many levels, but how she found a sentient judge to agree with her remains a mystery.
She claims that President Trump overstated the value of his Trump Tower condo in a loan application to Deutsche Bank, but that Deutsche Bank had no knowledge of the deal because it had conducted its own due diligence. There were no complaints.
Trump was good at making money.
The judge in this case, Arthur Engoron, may or may not be sentient.
What is certain is that he is almost as politically active as Mr. James, who ran by promising the Democratic base that he would find any crime to destroy Mr. Trump as he prepares to run for president. It’s stuck in the hack mold. Even if it’s a victimless one.
No victims, but serious: Trump has until Monday to either come up with funds that his lawyers say he doesn’t have or secure a bond to cover that amount. But as this column is published, it appears that no bank or insurance company intends to do that.
He could ask some of his billionaire friends for funding, but so far they don’t seem too keen on pony-ups.
Late Friday, President Trump said he miraculously obtained the cash but did not want to spend it.
Now what happens?
So what happens to the billions of dollars that Trump was supposed to have at his disposal on Monday if he doesn’t comply with the court’s demands?
First, if you know anything about what Trump thinks he’s worth and what other people are saying he’s worth, it’s been a rocky relationship.
Donald is known for trying to inflate estimates of his worth by Forbes magazine, which publishes an annual ranking of the world’s wealthiest people.
He once lost a case against a reporter who estimated his worth was significantly less than $1 billion.
Forbes estimates Trump’s net worth at $2.6 billion as of September 2023, meaning he is still extremely wealthy.
On top of that, President Trump is eyeing an impending huge payday as the investment vehicle that owns his social media platform, Truth Social, is set to go public.
For Trump, the payout could be as much as $3.4 billion.
But there are also complications.
The deal to take Truth Social public through a merger with a so-called SPAC has sparked some serious litigation, and the company’s regulatory filings say Trump won’t be able to sell any of his company stock for six months. It has become.
Shares in the SPAC, known as Digital World Acquisition, have more than doubled to about $37 in recent months after Trump chose Sleepy Joe Biden as the Republican nominee for this year’s presidential election. .
But Truth Social’s traffic is a fraction of Elon Musk’s It will be twice as much as Social.
If Mr. Trump cashes in, the stock could be worth much less.
Meanwhile, securities lawyers say his existing stock probably cannot be used as collateral for a loan. Similarly, his real estate holdings in New York, where commercial real estate is not necessarily booming, are largely illiquid.
If you had to sell on the spot, who knows what you’d get at Trump National Doral in Miami or even Palm Beach’s swanky Mar-a-Lago golf course and country club? .
Worst of all, Mr. Trump has always had little cash at his disposal, and even less now that he has donated $83 million to satisfy a judgment in the E. Jean Carroll defamation lawsuit that he also plans to appeal.
So what’s a cash-strapped billionaire staring at a $454 million judgment to do?
Let’s pray for a change of heart from billionaire friends Tom Barrack, Bernie Marcus, and Howie Lorber who will write a check Monday morning and keep Tish James from chaining himself to the front door of Trump Tower. .
You might beg Mr. Musk for a few bucks.
Or maybe they pray that James confiscates the Westchester property and stops there (though knowing James, I highly doubt it).
Or they’re worried that President Trump will sell off all of his New York real estate at once, causing the city’s commercial real estate market to slump even further, so he agrees to cut back on funding.
President Trump could make a really tough play. Given his long and troubled history in the business, he certainly knows how to do it.
As I first reported, Trump’s advisers have turned over all assets to James and transferred ownership complexities to her, including his limited partners, until she reaches Trump’s share. We are considering whether to let them know.
By the time that happens, this case may have been successfully overturned on appeal for all its ridiculousness.
