Trump wins last-minute reprieve as Judge cuts fraud bond to $175m

A judge in New York has granted Donald Trump’s request to pause his $464m (£365m) fraud judgement, giving him 10 days to put up a reduced sum of $175m.

The former President’s legal team had previously 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.

But on Monday, he was granted a last-minute reprieve by an appeals court. “I greatly respect the decision,” he said. “We will abide by the decision. and post either a bond, equivalent securities, or cash.”

At a news conference, Trump suggested he would post the new sum in cash. “I don’t need to borrow money, I have a lot of money,” he said. “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 also agreed to delay the enforcement of other penalties that were part of the original judgement, such as barring the former President and his elder sons from running businesses in New York.

But the court left in place a monitor that is overseeing Mr. Trump’s businesses and can sound alarms if they find any misconduct.

Trump was found liable earlier this year for repeatedly inflating the value of his assets.

To secure a bond, an individual has to demonstrate to the company providing the guarantee that they have enough liquidity, usually in the form of cash or stocks.

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 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.

The appellate court’s decision on Monday is a victory for Mr Trump, said Will Thomas, a Professor at the University of Michigan Ross Business School, who noted that the former President is being allowed to appeal without paying the cost of a full appeal bond.