Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, revealed in an interview with CNN that the process of underwriting Donald Trump's $175 million bond in New York was swift and involved Trump posting all cash as collateral.
Hankey explained that he initially contacted the Trump Organization last month when the former president encountered difficulties in securing a $464 million bond. Following a reduction in the bond amount to $175 million by a New York appeals court, the Trump team reconnected with Knight Specialty. Initially, Trump intended to use a combination of investment-grade bonds and cash as collateral, with an 80% bond and 20% cash split. However, Hankey disclosed that Trump ultimately decided to provide the entire collateral amount in cash.
Notably, Hankey mentioned that he is unaware of the source of the $175 million in cash that Trump used as collateral for the bond.
