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“He Can Pay It” Man Who Covered Trump’s Finances Reacts to $83.3M Defamation Ruling Against Trump

by Jessica
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In the aftermath of the recent $83.3 million defamation ruling against Donald Trump, financial experts are scrutinizing the former president’s assets, assessing the potential impact on his financial standing.

According to a report published by The Guardian on Tuesday, January 30, 2024, Forbes editor Dan Alexander, known for his coverage of Trump’s finances for years, shared insights into the situation, suggesting that while Trump can manage the current liability, additional legal challenges may pose a huge threat.

According to Alexander, Trump currently possesses approximately $400 million in liquid assets, providing him with the capacity to settle the $83.3 million defamation payment to E. Jean Carroll.

“He can pay this. Right now he does have about $400 million in liquid assets. And so, sure, $83 million would hurt, but yeah, he can pay it,” Alexander said.

However, the financial sphere becomes more precarious when factoring in potential penalties from other pending cases.

Trump is awaiting a ruling in a New York fraud case, where Attorney General Letitia James is seeking $370 million.

Alexander emphasized that the accumulation of multiple financial obligations could push Trump into a “real cash crunch.”

Alexander said, “And then all of a sudden he could find himself in a real cash crunch.”

While he acknowledged Trump’s ability to handle the $83 million payment, he emphasized the potential challenges arising from additional damages in the fraud case.

If faced with a substantial civil case verdict, Trump might find himself grappling with a financial burden equivalent to about one-fifth of his net worth.

Crucially, Alexander pointed out that the magnitude of the damages exceeds Trump’s available cash reserves.

This situation would necessitate strategic financial maneuvers, such as refinancing or selling assets.

“So, all of a sudden he’s going to have to refinance something, sell something, and when you look across his portfolio, many of the assets that are easy to borrow against, he’s already borrowed money against, Alexander asserted.

However, the analysis revealed that many of the assets within Trump’s portfolio, which are typically used as collateral, have already been leveraged.

Consequently, Trump might encounter difficulties securing substantial loans, particularly given his past credit issues.

The financial atmosphere for Trump is further complicated by the wariness of banks toward him.

Alexander indicated that, considering Trump’s credit history and the controversies surrounding his financial dealings, securing sizable loans could prove tricky and delicate.

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