this post was submitted on 25 Mar 2024
615 points (97.4% liked)
Not The Onion
12200 readers
611 users here now
Welcome
We're not The Onion! Not affiliated with them in any way! Not operated by them in any way! All the news here is real!
The Rules
Posts must be:
- Links to news stories from...
- ...credible sources, with...
- ...their original headlines, that...
- ...would make people who see the headline think, “That has got to be a story from The Onion, America’s Finest News Source.”
Comments must abide by the server rules for Lemmy.world and generally abstain from trollish, bigoted, or otherwise disruptive behavior that makes this community less fun for everyone.
And that’s basically it!
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
One of the most ridiculous false pretenses Trump tries to maintain is that he can only pay with a single, $454M bond, and since he can’t get one that large, he should, obviously, just be forgiven the amount entirely and let off the hook.
What he doesn’t want anyone to know is that, obviously, he could just get several smaller bonds for, say, $50M or $75M or $100M until it added up to the $454M or however much he needs to post for the appeal. In fact, he even tried to offer a $100 bond before, but used it instead in the E Jean Carrol appeal.
Possibly he knows that, and is just trying to bleed his supporters for donations until the last moment.
He definitely knows that
We gotta teach the trump's how to count? No wonder they committed extensive fraud for decades.
He knows how to count up to 11,780
......do you really think that's a clever statement? fuck me.
Like literally chubb dogded a bullet lending this money earlier rather than having to be available for the next big payout. If you ask me is a small price to pay for salvation
They still loaned him a fuck ton of money that they sure won’t ever see again. So I don’t know how they dodged a bullet.
Chubb did a fully collateralized bond. Meaning they got something of actual value, not just trump's word. In this case a Schawb brokerage account full of stocks and bonds for (I believe) more than the value of the bond. Plus Chubb probably added a fee on top of the value of the bond to service the transaction. When trump loses the E Jean Carroll appeal, Chubb will hand over cash and sell off the assets in the Schawb account and pocket their service fee.
Why would they do it this way instead of just directly selling what's in the account? I get that it takes time to unwind stuff like that, but surely it can be done in the time the judge gave?
Taxes. If by some stroke of miracle he wins the appeal, he won't have to pay capital gains taxes that he otherwise would have had to pay if the portfolio was liquidated.
This. And to put numbers on it, long term cap gains taxes (for things in the account held for 2 years or more) is 20%. For short term (things in the account owned for less that 2 years) it can be as 37%. So if the account is just used as collateral, and Chubb charged a fee of less than 20% then the bond is a cheaper way to get the money for the appeal.