Judge Slashes Fraud Bond for Trump to $175m, Grants Last-Minute Reprieve

A judge in New York has granted Donald Trump's request to pause his $464m (£365m) fraud judgement, and also gave him 10 days to pay a reduced sum of $175m.

Recall that the former president's legal team said he was unable to secure a bond from a private company for the full amount.

He had faced a deadline of Monday to post the $464m bond.

If he had failed to do, the authorities in New York could have started to seize his bank accounts and properties.

However, today, he was granted a last-minute reprieve by an appeals court. "I greatly respect the decision. We will abide by the decision... and post either a bond, equivalent securities, or cash."

Speaking during a press conference, Mr Trump suggested he would post the new sum in cash. "I don't need to borrow money. I have a lot of money. I have much more than that in cash."

If he pays the reduced $175m bond, it would protect his assets while he continues his appeal.

The court has granted a postponement of additional penalties outlined in the initial ruling, including prohibiting the former president and his adult sons from conducting business activities in New York. 

However, the court has maintained a monitor overseeing Mr. Trump's businesses, empowered to report any misconduct discovered. Earlier this year, Mr. Trump was held accountable for consistently exaggerating the worth of his assets. 

To obtain a bond, an individual must prove to the issuing company their sufficient liquidity, typically through cash or stocks.

Mr Trump testified last year that he had as much as $400m in cash. Forbes gave a similar estimate in September 2023 - around $423m in cash and liquid assets.

Last week his lawyers said he had been unable to cover the $464m penalty despite approaching 30 financial companies to provide a bond.

New York Attorney General Letitia James, meanwhile, said on Monday that Mr Trump was "still facing accountability for his staggering fraud".

"The $464m judgement - plus interest - against Donald Trump and the other defendants still stands," she said in a statement.

Will Thomas, a professor at the University of Michigan Ross Business School, while noting that the former president is being allowed to appeal without paying the cost of a full appeal bond said today that the appellate court's decision is a victory for Mr Trump.

Mitchell Epner, a lawyer who handles commercial litigation, said he was surprised by the court's decision to grant Mr Trump a stay.

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