'Subprime loan king' who posted Trump’s $175M bond has long history of 'shady business practices'

04 April 2024

It remains to be seen how successful Donald Trump will ultimately be in appealing Justice Arthur Engoron's sanctions in New York State Attorney General Letitia James' civil fraud case. But for now, he has a financial lifeline while making the appeal: the $175 million bond posted by billionaire Don Hankey, who chairs Knight Specialty Insurance Company.

Since the 80-year-old Hankey posted the bond, his history in the business world has drawn a great deal of scrutiny. The New Republic's Ellie Quinlan Houghtaling, in a biting article published on April 3, stresses that Hankey — who has been called "the king of subprime loans" — has a history of "shady business practices."

The Daily Beast has reported that one of Hankey's companies, Westlake Services, was sued by the U.S. Department of Justice (DOJ) when Trump was president for illegally repossessing 70 cars. And Houghtaling points out that the Westlake debacle wasn't the first time he was "penalized by the feds."

"That's all a part of the game to Hankey, who carved out his $7.4 billion fortune through those kinds of predatory practices, targeting low-income customers with high-interest auto loans," Houghtaling explains. "Hankey's Knight Specialty Insurance Company is the group that underwrote Trump's bond for his civil fraud trial, but it’s not Hankey's only investment in Trump's financial situation. Hankey is also believed to be the largest shareholder in Axos Financial, according to MSNBC’s Lisa Rubin — a financial institution that, in 2022, refinanced more than $50 million of Trump's loans on Trump Tower and Trump National Doral Miami, according to documents filed with the Office of Government Ethics."

Houghtaling points out that Hankey discussed Trump with Forbes during an early April interview.

The billionaire told Forbes, "I'd never met Donald Trump. I'd never talked to him on the phone. I heard that he needed a loan or a bond, and this is what we do. So, we reached out, and he responded."

Read The New Republic's full article at this link.

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