Posted on 03/21/2024 7:09:32 PM PDT by chuckee
In the span of just a few days, Donald Trump’s financial position has moved from seemingly dire—facing the seizure of prized real estate if he doesn’t obtain a large bond—to potentially dazzling, with revelations that his social-media company could bring him more than $3 billion.
It is nothing new for a man who has long ridden a roller coaster of luck, acquiring and losing valuable assets repeatedly. When his financial position appears to be the most at risk, again and again, he finds a way to squirm out of it and emerge strong.
A big question: Would the windfall come in time to rescue him once more?
The former president most immediately faces a $454 million judgment against him in a civil-fraud case in which a judge found he inflated his assets for financial gain for years. Unless an appeals court soon rules in Trump’s favor, New York Attorney General Letitia James, a Democrat who brought the case, could begin trying to seize his assets Monday.
Also Monday, the parent company of Trump’s social-media company—Truth Social—could become publicly traded under the stock ticker DJT. Because of his ownership stake, this could essentially double his estimated net worth. But he can’t sell the shares or borrow against them for six months unless he gets a waiver from the shell company taking Truth Social public.
These sums dwarf the huge financial hole he faces as the presumptive Republican candidate for president. Trump is beginning the 2024 general election at a financial disadvantage, with some donors still skittish about chipping in. Trump aides believe they have plenty of time to close the gap with President Biden...
(Excerpt) Read more at wsj.com ...
It is really easy. The LLC is organized in Ohio and registers as a foreign LLC in New York and takes title to Trump Tower or whatnot. Ohio rules apply. Creditor gets nothing until the LLC distributed money to Member.
Malpractice for using a NY LLC where judgments against a member can be used to liquidate their interest in the company, just as shares of stock can be seized and sold.
I’ve had to tell that sorry fact to many NY lawyers who don’t know how to protect assets.
I am sure MBS would love to help him but it’s near impossible for Trump to accept MBS’s help without ending his political career.
Because of his ownership stake, this could essentially double his estimated net worth. But he can’t sell the shares or borrow against them for six months unless he gets a waiver from the shell company taking Truth Social public
shell likely includes underwriters like GSCO or MSCO or Schwab etc….they prolly are ok but may be concerned about the incoming they’ll take
You get the picture
True
Trump went light on the chop chop thingie
Proper in my opinion
Internal Saudi matter
Yes, I think Trump will be successful on appeal, The appeal is a given. But to get there, the immediate problem is he either has to post the $450 million judgement in cash with the court which he does not currently have or post a bond. The only immediate issue for him right now is getting the bond issued. Insurers would not take all illiquid real estate as collateral. They wanted some liquidity in the mix..This will introduce some liquidity, albeit with the 6 month proviso. Having spent a career on Wall Street as a new issues syndicate manager, I know from experience, it is exceptionally rare for an IPO to lose 80% of its value in 6 months even in a bad general market. If the SPAC that serves as the shell holding the shares waives the 6 month holding requirement which they may do next week, then the 6 months is not an issue, although he does not want to take a bath dumping a large number of shares overnight. He will have to sell off pieces over weeks or do a private transaction with an institution or wealthy investor.
Of interest could he request or file for a repayment of taxes paid on these properties based on the court findings?
That should be more than most people would ever see in income within their lifetime. The failure of the state to refund would be a direct refutation of the judge’s valuation of the properties. This would open the state, judge and prosecutor to civil judgements. Could civil recovery counts then be brought against the judge and DA for personal liability?
the Sauds should at least offer...
Is there an initiative to get a stay on Leticia’s property grab so a higher court can weigh in on the obvious 8th Amendment violations?
So basically don’t run from the charging bear, just run faster than the next guy eh?
How brave.
I am no lawyer, he has to post a bond according to NY law. He may be able to argue in federal court that this state law is a due process violation, stripping him of his rights and privileges as a citizen.
The SPAC may grant him a waiver but as a new issue it will be difficult. As you said, some forms of equity swaps may be possible off the exchange. Or something even more complicated. I understand it’s a going concern, but how do the big investors see it as a long term investor? Is it really worth $7 billion or whatever the market cap is?
I thought about that too. That once Trump wins the appeal, he should consider suing James and Judge Elgernon civilly. The big problem is that judges, AGs and prosecutors have absolute immunity. He would be fighting an uphill battle overcoming the immunity issue having to establish that they were acting under color of law for personal corrupt purposes, particularly in a state and county where the judiciary is loaded with the likes of Elgernon types on their benches
If I were Trump, newly re-elected as POTUS, I would not blame him for burying the motherfokers until they squeamed and had to live in van down by the river.
bttt
“but how do the big investors see it as a long term investor?”
I suspect that is why Trump paid a call on Elon last week. Elon was coy about what they spoke. I would not be surprised if, owning the major social media company and familiar with the industry and Truth Social, Elon and he discussed a private placement of some of Trump’s shares directly with Elon once the IPO went public. Ultimately, Elon might want to acquire the whole magilla if he finds there is a synergy and can build his X base with it
Does anyone here have a legal opinion how the Supremes would come to get involved in a hurry here? What is Presidrnt Trumps likely path to petition them to review and intervene hastily here? Or does he have to suffer more and twist in the wind a while before they might be in a position to review it?
Yeah I thought about that but I just don’t see it - or at least not that way. Elon doesn’t need Truth. They are basically competitors. And Truth was formed in response to the actions of the old Twitter regime. Is there really a market for Truth out there? The landscape has changed. X doesn’t have the restrictions that inspired the need for Truth.
Elon is unpredictable… but has some vulnerabilities. The SEC is after him about whether he disclosed his stake in Twitter before the acquisition (which is silly imho because he paid full price for the balance of the company). DelewRe stripped him of $50 billion. They are after him in many ways about Tesla… he is also an asset though, the government wants SpaceX and his military satellite and they want Tesla for their green new deal. It’s a complicated issue with Musk vs the USA.
It would be “bombshell” news if Elon came out to support Trump in some way. I don’t know exactly what Trump owns or how much equity is in them, but it’s possible something like Trump sells certain properties to Musk, which are put into a trust, where Trump also gets a call option to buy them back within 7 years. So if Trump loses, Musk keeps the property but if Trump wins he gets them back and Musk is made whole. But I’m kind of dreaming…. Who knows.
I also wonder if Trump goes into bankruptcy- that should technically stop all proceedings. Maybe not the look Trump wants to portray at this time but he could use that to his advantage - “look what these evil people forced me to do”.
I think he has filed the appeal in the state appellate court first on 2 grounds a) that he should not have been found liable for a number of reasons and b) even if found liable the judgement amount is excessive and should be reduced. These appeals will not be resolved overnight and will take months and perhaps a year or two if he has to move to the Federal appellate courts and ultimately the US SC to pursue the constitutional due process issue and 8th amendment extreme cruelty issue once he exhausts appeals in the state appellate courts. The good thing is once he posts the bond for the judgement amount, he will not be financially pressed and he can take his time pursuing them during his Presidency
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