Trump Could Be Hit with $400 Million in Damages, Faces Bankruptcy
Trump Faces Growing Damages from Continuous Losing Lawsuits
Banks, “No Loans to Trump without Collateral”
Donald Trump risks paying hundreds of millions in damages after losing various lawsuits. There are even rumors of “Trump’s bankruptcy.”
NBC reported on the 6th (local time) that Trump, who lost a defamation lawsuit related to sexual harassment victims and has to pay $83 million in damages, is also at risk of losing a lawsuit about asset inflation. If Trump also loses this trial, he must pay an additional $400 million in damages. NBC said that if Trump has to pay $400 million in damages, he will face financial difficulties to the extent that he cannot run for president and is facing a “financial tsunami.”
Trump, involved in various civil and criminal lawsuits, will face a trial for asset inflation soon. The New York prosecutor claims that Trump inflated his assets for bank loans and tax reductions, which constitutes fraud. As a result, the prosecutor’s office has been proceeding with a civil fraud trial in the Manhattan District Court in New York since September 2022.
Judge Arthur Engoron, who is in charge of the case, has already accepted the prosecution’s claim that he inflated the value of his assets. As the possibility of losing the trial increased, Trump’s side raised their voices in various interviews, saying, “We will appeal immediately if we lose the trial.”
However, the defendant also needs money to appeal. According to New York state law, the defeated defendant must deposit money with the court, which is the damages plus a certain percentage of the damages. If Judge Engoron accepts all the amounts claimed by the prosecution and Trump’s side loses in the appellate court, Trump will have to pay more than $450 million.
AP quoted Trump’s annual financial statement, saying that he had $294 million in cash as of the end of June 2021. Experts predict that this amount is far from enough to pay all the damages and that Trump will attempt to take out loans. However, they said that banks and guarantee companies will not lend him money without collateral. Attorney Chris Matey said, “It will be a huge financial blow,” and “It can significantly impact his assets. He may also apply for bankruptcy protection.”