Don Hankey, the chairman and majority shareholder of Knight Specialty Insurance, recently underwrote a $175 million bond for former President Donald Trump in New York. Hankey stated that the deal came together quickly, with Trump posting all cash as collateral. Knight Specialty Insurance is based in California and is known for providing subprime auto loans to car buyers with weaker credit scores. Hankey, who has supported Trump’s presidential campaigns, reached out to the Trump Organization last month after Trump had trouble putting together a $464 million bond.
Initially, there was discussion about putting together a bond of that size, but it was later reduced to $175 million by a New York appeals court. Trump planned to post a mix of investment-grade bonds and cash as collateral, but ultimately ended up posting all cash. Hankey mentioned that he does not know where the $175 million in cash came from, and mentioned that he and his family have donated to Trump’s presidential campaigns in the past and plan to support him in 2024. Eric Trump reached out to Hankey to thank him for the business.
This is not the first time Hankey and Trump’s businesses have been connected. In 2022, Axos Bank, a California lender in which Hankey is a leading shareholder, loaned Trump $100 million to refinance the mortgage on Trump Tower. Hankey stated that he was not aware of the Trump Tower loan at the time. Despite this, there seems to be a history of financial dealings between Hankey and the Trump Organization. Hankey confirmed that he has not heard directly from the president, but Eric Trump contacted him to express gratitude for the bond underwriting.
The quick and efficient transaction process with the bond underwriting for Trump’s $175 million demonstrates Hankey’s willingness to support Trump and provide financial assistance. Hankey’s significant wealth, estimated at $7.4 billion by Forbes, allows him to engage in large financial transactions without hesitation, as seen in this case with Trump. The support for Trump’s presidential campaigns and plans to back him in 2024 indicate a strong personal and financial relationship between Hankey and Trump.
Overall, the involvement of Don Hankey and Knight Specialty Insurance in underwriting the bond for Donald Trump showcases the intersection of politics, business, and personal relationships. The ease with which the deal was put together, the substantial amount involved, and Hankey’s past support for Trump’s campaigns all speak to the complex and intertwined nature of these relationships. The subsequent gratitude and acknowledgment from the Trump family further emphasize the significance of these financial transactions and relationships in the realm of high-profile figures like Trump and his supporters.
