Trump Reportedly Has $425 Million in Cash, What Happens to It After an Indictment?

Former President Donald Trump has been indicted with criminal charges for allegedly trying to overturn the 2020 elections. This comes amid a presidential campaign and fundraising efforts, with Trump’s Save America political action committee (PAC) 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 had shied away from, provided him with millions in loans, likely with stiffer terms than Trump usually accepts due to 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 of 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.

If Trump is able to maintain his liquidity and the indictment does not lead to asset seizures, the cash may remain relatively untouched. Trump’s various loans and business debts could still impact his cash reserves, regardless of an indictment. In conclusion, speculation on Trump’s financial state post-indictment may lead to premature conclusions, as an indictment is just the start of a lengthy legal process.

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