
Chubb Backs Out of $464 Million Appeal Bond Negotiations With Trump and Co-defendants
Insurance giant Chubb withdrew from talks about a $464 million appeal bond for Donald Trump's civil fraud case, leaving Trump and co-defendants struggling to find alternative options.

Former president Donald Trump and his co-defendants have suffered a setback in their attempt to secure an appeal bond from insurance giant Chubb for a $464 million civil fraud judgment. The company backed out of negotiations just days after granting Trump a bond in a separate case, according to a Trump lawyer.
Refusal from Multiple Companies
Chubb was one of over 30 companies that declined to create a bond to temporarily halt the massive business fraud judgment, as per attorneys for Trump. They requested the appeals court to pause the judgment before New York Attorney General Letitia James initiates the collection process, which could commence as early as next week.
Chubb's Change of Heart
Alan Garten, a lawyer for the Trump Organization, revealed that Chubb was the only company willing to consider underwriting an appeal bond secured by a blend of liquid assets and real property. Despite actively negotiating with Trump and his co-defendants, Chubb notified them that it could not accept real property as collateral within the past week.
Swift Scrutiny and Repercussions for Chubb
Chubb faced immediate scrutiny for underwriting a $91.6 million appeal bond for Trump in a separate civil case. The company's CEO, Evan Greenberg, had previously been appointed by Trump to advisory committees, raising questions about potential conflicts of interest. Greenberg later clarified that Chubb does not take sides and issues appeal bonds without making judgments about the claims involved.
Chubb's Response
When questioned about their engagement with Trump's team regarding a bond in the business fraud case, Chubb declined to confirm or deny any business discussions as a matter of policy. The company did not offer further comment on the recent court filing.
Challenges in Obtaining the Bond
Trump's lawyers argued that it would be immensely challenging for him to swiftly sell parts of his real estate portfolio to raise enough cash for the bond. They emphasized the reluctance of surety companies to accept "hard" assets like real estate as collateral, making it nearly impossible for Trump to post a complete appeal bond despite diligent efforts.
Industry Expert's Perspective
JD Weisbrot, president and chief underwriting officer at JW Surety Bonds, acknowledged the unprecedented nature of the bond's requirement. He highlighted the unusual demand for such a large bond from a private organization, noting that surety companies typically consider bonds of this size as "hazardous" and expect them to be fully backed by liquid assets.
Trump's Response and Social Media Outbursts
With a looming deadline for the collection of the fraud judgment, Donald Trump has expressed his frustration on social media, claiming that the trial judge is forcing him to put up "Hundreds of Millions of Dollars" for the right to appeal. He criticized the requirement to post an appeal bond and expressed concerns about potentially having to sell assets at reduced prices if the appeal is unsuccessful.
Share news