Don Hankey, a billionaire businessman, has defended the fee charged by his company, Knight Specialty Insurance, for providing the $175 million bond used by former President Donald Trump in his New York civil fraud case.
Hankey said the fee was kept low because Knight assessed the bond’s risk as minimal. While he didn’t reveal the exact fee, Hankey noted that typical surety companies charge between 1% and 2% of the bond’s face value.
Hankey admitted some regret, suggesting Knight should have charged Trump more, especially given scrutiny from New York Attorney General Letitia James and media attention on the bond.
The unexpected legal challenges have made Hankey reconsider if the initial fee was enough.
Billionaire businessman reflects on undercharging Trump (Via Jim Warner/Getty Images)
Despite questions about the bond’s validity from James’ office, Hankey stands by Knight’s decision, noting an increase in inquiries after issuing the bond. He emphasized that Trump provided collateral for the bond, either independently or with backers, in cash at a brokerage firm, pledged to Knight.
Hankey said he started talking to Trump’s representatives about helping with the bond before it was reduced from $454 million to $175 million on appeal.
Hankey understood Trump didn’t have $454 million in cash, backed up by Trump’s deposition with James in April 2023.
Despite Trump’s past claims about having a lot of cash, his spokesperson didn’t comment. Hankey’s role shows the complexities of Trump’s legal fights and the financial details in such high-stakes cases.
