Knight has said it was authorized to issue the bond, which is fully backed by cash held in a Charles Schwab account pledged to the insurer, and that it could access nearly $2.2 billion of assets at its parent company if something went wrong.
James said in court papers that a Trump-owned trust still controls the account, and that Knight’s own financial arrangements appear insufficient to cover the amount of the bond.
If trump loses the appeal, he’s gonna empty that account because it’s then Knights problem to deal with. And he’s probably betting on Knight not being able to fight off government and Trump’s lawyers at the same time.