Former President Donald Trump was indicted on criminal charges by a federal grand jury on Aug. 1, charging him with four crimes in an alleged effort to overturn the 2020 elections. Now, many wonder what will happen to his $425 million in cash following this latest indictment.
Donald Trump has been indicted for allegedly spreading lies that there was outcome-determinative fraud in the 2020 election and that he had actually won. This is his third indictment, which comes amid a presidential campaign and fundraising efforts. Trump’s Save America political action committee (PAC) is now down to $3 million after raising $100 million in 2022. Trump’s PAC has spent more than $20 million on legal fees alone, making payments to over 40 different law firms in the first six months of 2023.
The former president’s increasing legal woes might hinder his finances, as some of his banking relationships have been cutting ties with him. Axos Bank, which specializes in loans to borrowers other banks have shied away from, provided him with millions in loans, likely with stiffer terms than Trump usually accepts because of his urgent need for a lender. This proved vital to stabilizing his post-presidential finances and enabling him to mount the campaign that now has him leading the GOP pack for the 2024 presidential nomination. Recent dealmaking and loan refinancing have left him with $425 million in cash, which could be helpful for future borrowing.
However, in the face of an indictment, the financial standing of an individual can face intense scrutiny. Trump’s reported $425 million in cash does provide him with a significant cushion, as this liquid asset could sustain his ventures or be used to repay his debts. Alternative lenders, such as hedge funds or insurance companies, might still be willing to lend, albeit likely at higher interest rates. Other experts echoed the sentiment that Trump’s reported $425 million in cash does not automatically disappear with an indictment. However, it could be affected depending on the specifics of the charges and potential legal outcomes. Sammie Ellard-King, personal finance advisor at Up The Gains, said that in legal proceedings, if the charges were severe and proven, courts might require a hefty bail or fine.
Additionally, litigation can be an expensive process, leading to significant legal fees. When considering the future of someone’s finances in light of legal troubles, it is crucial to understand that an indictment is just the start of a lengthy legal process and does not guarantee guilt or immediately freeze or seize personal assets.
