Donald Trump is just days away from getting slammed with a court judgment that could be worth hundreds of millions of dollars as a punishment for his decades of bank fraud with the Trump Organization. And two little-known New York laws could leave Trump scrambling for cash: a requirement that he immediately front the money to appeal the decision, and a sky-high state interest rate.
During a deposition with the New York Attorney General in April 2023, Trump boasted that he had $400 million in cash, bragging about how it’s “a lot for a developer.” But even if that were true, it likely won’t be enough to simultaneously cover last month’s $83 million verdict at his rape defamation trial—which he needs to immediately set aside to appeal that case—and the $370 million demanded by the AG for his incessant lying to banks.
While the judge deciding the bank fraud case hasn’t come up with a final figure that Trump owes, every indication is that it will be into the hundreds of millions. A message from the judge on Tuesday actually suggested it could be even more than what the New York AG is seeking.
Trump’s sudden cash demands are exacerbated by a quirk in New York law. Not only would the judgment get automatically inflated by an unusually high interest rate of 9 percent, but Trump would need to give the court the enlarged total—plus an extra 10 to 20 percent—in order to appeal and have another day in court. And it would all be due by mid-March. [Continue reading…]