Trump's financial burden: Balancing bails, business, and billions
Donald Trump's stock market success has pushed his net worth to $7.2 billion. However, he faces difficulties in accessing cash to cover the bails required in numerous court cases against him. An expert told Bloomberg this situation arises from the nature of Trump's wealth.
9:33 AM EDT, March 31, 2024
Bloomberg's analysis highlights that legal challenges could overshadow Trump's real estate holdings, potentially forcing him to sell assets to cover his legal expenses.
Two pieces of good news for Trump
Last week brought some relief to Trump. Firstly, a New York appellate court reduced the bail for one of his cases by 68%, lowering it from $454 million to $175 million. This reduction comes with a 10-day deadline for Trump to pay the reduced amount.
Secondly, Trump's media company’s stock market debut saw a 16% increase, boosting his net worth to $7.2 billion and landing him a spot in Bloomberg's top 500 richest people list as of Wednesday, March 27.
Yet, his financial troubles are far from over, Bloomberg concludes.
Trump's wealth is primarily in real estate
Bloomberg notes that Trump's fortune, though substantial, differs from other billionaires' mainly because it's tied up in real estate. Prominent holdings include the Trump Tower in New York, the Mar-a-Lago estate in Florida, and several golf courses.
The future of assets like the Trump Tower is uncertain. The government could seize it if, upon appeal, Trump fails to pay the $454 million owed.
Elon Musk, Jeff Bezos, and Mark Zuckerberg could easily handle a $450 million expense. Trump, however, isn't in the same financial league, making this a significant setback for him, according to former federal prosecutor Michael Zeldin in a conversation with Bloomberg.
A series of lawsuits against Trump
Trump is facing a financial crisis due to mounting legal bills from defending himself in four criminal probes and various civil actions.
Recently, Trump had to post approximately $92 million in bail related to defamation cases brought by writer E. Jean Carroll, who accused him of sexual assault. Additionally, a trial concerning hush money payments to a porn star prior to the 2016 elections is set to begin in mid-April.
Donald Trump insists he has "plenty of cash"
Recently, the Associated Press reported Trump urging supporters to buy a specially edition Bible for about $60, seen as an attempt to improve his financial standing.
Though his electoral campaign is also a significant expense, Trump has been using some of the campaign funds to cover legal costs. According to Bloomberg, data from the Federal Election Commission reveal Trump's main political committees have spent $63.9 million on legal fees since January 2023.
Bloomberg highlights that Trump's fundraising efforts are lagging behind those of his main competitor, Joe Biden, leading his political and legal teams to focus on debt repayment and campaign reorganization. Meanwhile, Trump has been spending more time at his Mar-a-Lago resort, meeting with various individuals and supporters.
Trump maintains that he's managing well, claiming on his platform Truth Social, "I have plenty of cash and a great company. I'd also like to use some of this money to get elected (as president)." He claims to have $500 million in cash. However, Bloomberg suggests cautious optimism, recalling the New York trial that scrutinized the overvaluation of real estate by Trump and his company, challenging the myth of his financial acumen.
