Revealing how the firm behind Trump’s $175 million bond deal came together

Knight Specialty Insurance’s chairman and majority shareholder, Don Hankey, recently spoke with CNN about the deal to underwrite former President Donald Trump’s $175 million bond in New York. Hankey stated that the transaction came together quickly, with Trump providing all cash as collateral.

Having supported Trump’s presidential campaigns in the past, Hankey reached out to the Trump Organization when the former president encountered difficulties putting together a $464 million bond. After the New York appeals court lowered the bond amount to $175 million, Trump’s team approached Knight Specialty once again. Initially planning to use a mix of investment-grade bonds and cash as collateral, Trump ultimately decided to provide all cash.

While he has not heard from the president directly, Eric Trump reached out to thank him for the recent business dealings. This isn’t the first time Hankey and Trump’s businesses have been connected, as Axos Bank, another California lender where he is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower in 2022, a deal that Hankey was unaware of at the time.

Knight Specialty Insurance is known for offering subprime auto loans to individuals with weaker credit scores. Based in California, they are one of many financial institutions that have come under scrutiny for their lending practices in recent years. The company has faced lawsuits and regulatory investigations over allegations of predatory lending and other illegal practices. However, Hankey has maintained that Knight Specialty operates within state laws and regulations and has always acted ethically in its business practices.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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