US Republicans are sacrificing themselves
Whether it’s a windfall or a seizure, Trump doesn’t care
By Roland Peters, New York
March 24, 2024, 1:06 p.m
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Donald Trump is expected to pay almost half a billion US dollars including ongoing interest because of fraud. He doesn’t have the money at the moment. But he took precautions with an IPO and the Republican Party.
Donald Trump is in danger. More precisely, parts of his possessions. If the ex-US President fails to come up with a bond by Monday, the court can order seizures worth around $458 million. That’s the amount Trump owes the state. Interest is added to $110,000 every day. He was sentenced to a corresponding punishment for fraudulent transactions. Trump objected. But since he could lose, he still has to provide securities equal to the penalty amount.
The Republican presidential candidate-elect said he was trying to find someone to put his hand in the fire for him, offering real estate as collateral. The state could have been assured of getting its money and not have to pay Trump immediately. But according to his lawyers, everyone waved him away. It would be “virtually impossible” to obtain a bond of this amount, his representatives argued before the court. They offered him $100 million instead. They didn’t get away with it though. Nevertheless, the ex-president could ultimately emerge as a shining winner and a shrewd businessman.
Trump has until Monday, March 25th to present the full amount. What happens if he doesn’t succeed? In extreme cases, the state confiscates its assets and pledges its properties and the assets of its debtors. Attorney Letitia James, who led the lawsuit, said she would ask the court to do so if Trump doesn’t pay. However, no one will come out on Monday and padlock their buildings. Most of them are in New York City, some further north in the state of the same name.
Trump’s candidacy for president will only have a marginal impact on all of this anyway. The fraud trial is just one of several cases in which he is charged. So far, however, Trump’s legal problems have not had a significant effect on the polls. Although Democrats hope this will somehow disqualify him from running for president. Trump himself and his colleagues, on the other hand, assume that public attention and media presence will help him win the election in November. Trump’s pointed claim from the 2016 election campaign still applies in 2024: “I could stand in the middle of 5th Avenue and shoot someone and wouldn’t lose any voters.”
Suddenly three billion dollars heavier
His property includes, among other things, a 1,000 square meter luxury apartment on the top floor of Trump Tower in Manhattan, an office building on Wall Street and a large property in the country, as well as golf courses. The court could also confiscate any funds from Trump’s bank accounts, stock portfolios or other assets such as airplanes. While Trump claims all of this is a “witch hunt” and politically motivated, it’s common practice when someone can’t pay a civil penalty. First, however, appropriate foreclosures or seizures would have to be ordered.
That would be another twist in the Trump saga, but not a catastrophe for him. Trump wouldn’t be Trump if he didn’t get his head out of the loop. He has already taken precautions: As ordered, it was announced on Friday that the ex-president will soon be a lot richer on paper. His tech company Trump Media & Technology Group aka TMTG, which operates the social network “Truth Social”, is going public through a merger. Trump’s shares, at least 58 percent, are likely to be worth around $3 billion. But analysts say the media company’s issue price is grossly overvalued given the network’s consistent losses.
According to stock exchange rules, Trump is only allowed to sell his shares six months after they were issued, which is intended to protect the share price of other owners. But there are exceptions. The board of directors of Trump’s company could explicitly waive the protection so that Trump can rain money for himself. To do this, the board members would have to prove that they are concerned about the benefit of the other shareholders. A possible argument would be: Trump is a brand and crucial to the success of Truth Social, if he can’t pay it would damage his image and therefore everyone involved.
Posted by Lara Trump
As a last resort, Trump could also file for personal bankruptcy and thus temporarily halt the seizure process. Even if it damages his image somewhat, it is likely to mobilize his supporters even more. He repeatedly boasted that he had never been bankrupt himself – only his companies. Accordingly, he is publicly upset about the possible seizures: “They want to take my cash away from me so that I can’t use it in the election campaign,” Trump recently complained. “Get your dirty hands off Trump Tower,” he rumbled.
If everything goes wrong – Trump can’t raise $458 million in security, the court is seizing his cash and he’s not allowed to sell his stocks – his presidential campaign will still just keep going. By the end of the week, Republicans were fully committed to their designated candidate for November. Donations will now be spent first on his legal fees via Trump’s outsourced campaign organization “Save America”. If there is anything left over, the party gets it. They sent out an appeal on Friday evening: It was not too late to save America. You only have to donate five dollars for it. The sender: daughter-in-law and deputy party leader Lara Trump.