Bond slashed to 175 million while Trump appeals

[Luvnit2]

(03-25-2024, 01:15 PM)JustWinBaby Wrote: Trump committed fraud, but the financial benefit is pretty questionable.  It COULD have resulted in a slightly higher interest rate, but that's impossible to determine conclusively.

For example, if Trump claimed Mar-a-Lago was worth $1B, the bank would almost certainly have ignored that and substituted their own valuation.  But I believe he claimed like $240M, and FMV estimates were maybe 20-30% below that. My guess is 20% would be on the high side of your typical real estate "fudging", certainly not as egregious as claiming his NY residence was 3X bigger than it was.

DB exec testified it haircut his claim of net worth more than half - to $2.5B from the $5.8B Trump claimed.  So what happens when you overvalue property?  It serves to inflate your equity in that property, which inflates your net worth.  So I don't think Trump's valuations would have led to a lower interest rate with DB.

It is a known fact every evaluation and loan document Trump submitted had a disclaimer on it stating use your financial statements to value the properties. I have had millions of dollars in loans, the bank uses their own evaluation prior to approval. Many times, they challenged my projections. 

The bank is responsible to complete a full investigation prior to lending any money.

Think of it in simpler terms, you buy a house for $500,000 and need to borrow 90% or $450,000. The bank does an APPRAISAL OF THE HOUSE AND ALSO INSURE NO LIENS AGAINST THE PROPERTY, if it appraised for $500,000 no issues. But if appraised for only $450,000, person needs to come up with an additional $50,000 down payment or sale is not approved. Banks will not lend money without an appraisal.

Again, all banks were paid, not one victim of a crime. First time in NY history a crime without a victim was prosecuted without a jury. Lots of firsts in this case. I feel it gets thrown out at some point.