Trump's financial woes deepen as legal challenges threaten asset base

Bloomberg's analysis highlights that Donald Trump's legal woes are overshadowing his real estate investments. The former president may need to sell some assets to cover the bail for his ongoing legal battles.

Last week brought a double dose of relief for the politician. The first was a 68% reduction in bail for one of the cases. On Monday, a New York appellate court reduced the bail from £365 million to £141 million, a sum Donald Trump must pay to appeal against a verdict that fined him nearly half a billion dollars for inflating the value of his assets. He has 10 days to arrange this payment.

The second piece of good news was his media company's stock market performance, which saw a 16% increase soon after launching. As a result, the politician's net worth surged to £5.8 billion, securing a spot in Bloomberg's list of the 500 wealthiest people (as of Wednesday, March 27).

However, he is still far from solving his financial difficulties – Bloomberg concludes.

Bloomberg asserts that despite Donald Trump's improved financial standing, his wealth doesn't match the liquid assets of other billionaires. It's largely tied up in real estate, including notable properties like Trump Tower in New York, the Mar-a-Lago estate in Florida, and several golf courses.

The future of the New York building, in particular, hangs in the balance. The government might yet seize it if, upon appeal, the court finds the former president unable to pay the £365 million, resulting in asset forfeiture.

For individuals like Elon Musk, Jeff Bezos, and Mark Zuckerberg, £362 million isn't significant – they can effortlessly settle it. Trump, however, doesn't seem to fall into this category of wealth, making it a substantial blow against him - Michael Zeldin, a former federal prosecutor, said in a discussion with Bloomberg.

The politician is embroiled in a financial crunch due to escalating legal costs. He is defending himself in four criminal cases and numerous civil lawsuits.

Recently, he had to post bail of around £74 million in defamation claims made by writer E. Jean Carroll, who accused Trump of sexual assault.

A trial concerning payments to silence a porn star before the 2016 elections is slated to start in mid-April.

In recent developments, The Associated Press portrayed an unusual plea from the politician, urging his supporters to buy a special edition Bible for roughly £48. AP suggests that the former president is exploring every avenue to enhance his financial status.

The electoral campaign is also draining funds, though Donald Trump is partly diverting these to cover legal expenses. Bloomberg, citing information from the Federal Election Commission, reports that the politician's key political groups have expended £51.3 million on legal fees since January 2023.

The report states that fundraising efforts are more challenging for him compared to his main opponent, Joe Biden. Hence, his political and legal teams are concentrating on debt settlement and campaign reorganisation. Meanwhile, Trump has been seen more at his Mar-a-Lago resort than on the campaign trail, meeting various individuals and backers.

The politician himself maintains that he has the situation under control.

I have ample cash and a highly valued company. I intend to allocate some funds towards my re-election campaign – Trump declared on his platform Truth Social.

He claimed to have £402 million in liquid assets. However, Bloomberg tempers expectations, questioning the veracity of this claim. The news agency recalls the legal scrutiny over his company's overvaluation of real estate assets, which led to a New York trial and burst the bubble of his financial mystique.