Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, recently announced that his company underwrote a $175 million bond for former President Donald Trump in New York. Hankey stated that the deal was put together quickly and that Trump provided all cash as collateral. Knight Specialty Insurance, located in California, is known for providing subprime auto loans. Hankey, a supporter of Trump, initially contacted the Trump Organization last month when Trump was struggling to secure a $464 million bond. The bond amount was later reduced to $175 million by a New York appeals court, prompting Trump’s team to reach out to Knight Specialty for assistance.
Initially, Trump planned to use a mix of investment-grade bonds and cash as collateral, with 80% bonds and 20% cash. However, Hankey confirmed that Trump ultimately posted all cash as collateral. Hankey, whose fortune is valued at $7.4 billion by Forbes, stated that he does not know the source of the $175 million in cash that Trump provided. He also mentioned that he and his family have supported Trump’s presidential campaigns in the past and plan to do so again in 2024. While Hankey has not spoken directly with the president, Eric Trump reached out to thank him for the business.
This recent deal between Knight Specialty Insurance and Trump is not the first time the two entities have been connected. In 2022, Axos Bank, a California lender in which Hankey is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower. Despite his ownership in Axos Bank, Hankey claims that he was unaware of the Trump Tower loan at the time it was executed. The close ties between Hankey’s businesses and Trump’s financial transactions underline the ongoing relationship between the two entities.
The underwriting of Trump’s $175 million bond by Knight Specialty Insurance highlights the ongoing financial support that Hankey and his family have shown towards the former president. Hankey stated that the transaction was an easy one to put together and that he would have done it for anyone else in a similar situation. Although Knight Specialty primarily specializes in subprime auto loans, the company demonstrated its flexibility and willingness to assist Trump with his bond requirements. Hankey’s willingness to quickly respond to Trump’s financing needs underscores their relationship and his ongoing support for the former president.
Despite the significant amount of money involved in the bond underwriting deal, Hankey maintains that it was a straightforward and quick transaction. Trump’s decision to provide all cash as collateral rather than a combination of bonds and cash further emphasizes the speed at which the deal was finalized. Hankey’s lack of knowledge regarding the source of the cash posted by Trump raises questions about the financial arrangements between the two parties. However, Hankey’s commitment to supporting Trump’s presidential campaigns in the past and in the future suggests a strong relationship between the two individuals and their businesses.
The involvement of Knight Specialty Insurance in underwriting Trump’s bond reflects the close ties between Hankey, Trump, and their respective businesses. The support of Hankey’s family for Trump’s presidential campaigns further solidifies this relationship. Hankey’s past financial support for Trump, combined with his quick response to Trump’s bond needs, indicates a strong bond between the two individuals. Despite the potential financial risks involved in underwriting such a large bond, Hankey’s confidence in the transaction’s success underscores his commitment to supporting Trump and his businesses. The ongoing financial connections between Hankey’s businesses, Trump, and the Trump Organization highlight the complex and intertwined nature of their relationship.
