Knight Specialty Insurance, a California-based provider of subprime auto loans to buyers with lower credit scores, recently underwrote a $175 million bond for former President Donald Trump in New York. The deal was made quickly and easily, with Trump putting up all cash as collateral. Hankey, the chairman and majority shareholder of Knight Specialty, spoke with CNN about the transaction and revealed that he initially contacted the Trump Organization last month when the former president was struggling to secure a $464 million bond.
The bond amount was eventually reduced to $175 million by a New York appeals court, leading the Trump team to reconnect with Knight Specialty. Although Hankey confirmed making campaign contributions to Trump in the past and intends to support him in the 2024 elections, he mentioned that he has not heard from the president directly. Eric Trump did reach out to thank him for the business. This is not the first time Hankey’s dealings have intersected with Trump’s businesses. In 2022, Axos Bank lent Trump $100 million to refinance the mortgage on Trump Tower. Hankey, a leading shareholder in Axos at the time of the loan, claimed he was unaware of the transaction. Despite their past interactions, Hankey said the recent bond deal with Knight Specialty was purely a business arrangement and that he would have assisted anyone in a similar situation.
