Don Hankey, a billionaire businessman, has defended the fee charged by his company, Knight Specialty Insurance, for providing the $175 million bond utilized by former President Donald Trump in his New York civil fraud case.
Hankey asserted that the fee was kept low as Knight assessed the minimal risk associated with the bond. Despite declining to disclose the specific fee, Hankey acknowledged that typical surety companies charge between 1% and 2% of the bond’s face value.
Hankey expressed hindsight regret, suggesting that Knight should have charged Trump more, particularly in light of heightened scrutiny from New York Attorney General Letitia James and extensive media attention surrounding the bond.
The unexpected legal challenges have led Hankey to reconsider the adequacy of the initial fee assessment.
Despite the recent questioning of the bond’s validity by James’ office, Hankey affirmed his commitment to the decision, stating that Knight had received an influx of inquiries following the issuance.
He emphasized that Trump had provided collateral for the bond, either independently or with the support of his backers, held in cash at a brokerage firm and pledged to Knight.
Hankey revealed that he initiated discussions with Trump’s representatives to explore avenues for assisting with the bond before its reduction from $454 million to $175 million on appeal.
Hankey indicated an understanding that Trump lacked the requisite $454 million in cash, corroborated by Trump’s statements in a deposition with James in April 2023.
Despite previous claims by Trump regarding his substantial cash holdings, his spokesperson declined to provide further comment on the matter. Hankey’s involvement underscores the complexities surrounding Trump’s legal battles and the financial intricacies underpinning such high-stakes litigation.
