In a recent interview with CNN, Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, revealed that the deal to underwrite former President Donald Trump’s $175 million bond in New York happened quickly. Hankey mentioned that Trump posted all cash as collateral for the bond. Knight Specialty Insurance, based in California, is known for providing subprime auto loans to car buyers with weaker credit scores.
Hankey, who has supported Trump’s presidential campaigns in the past and intends to do so again in 2024, reached out to the Trump Organization last month when Trump was having difficulty putting together a $464 million bond. Eventually, the bond amount was reduced to $175 million by a New York appeals court, and Trump turned to Knight Specialty Insurance for assistance. Initially, Trump planned to post a mix of investment-grade bonds and cash as collateral, but eventually decided to put up all cash. Knight Specialty approved the bonds but they were not posted in the end.
This recent deal is not the first time that Hankey and Trump’s businesses have been connected. In 2022, Axos Bank, a California lender where Hankey is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower. Despite their previous business dealings, Hankey and Knight Specialty Insurance continue to support Trump and his endeavors. Eric Trump did reach out to thank his father-in-law for the business.
