In a move that has rippled through both the business and political spheres, Don Hankey, a California billionaire known for his high-interest auto loans business, stepped into the spotlight by offering a financial lifeline to former President Donald Trump. The case in point revolves around Trump’s recent struggle to secure a bond amounting to over $450 million, required to forestall the seizure of his properties amid a colossal New York civil fraud judgment. Hankey, who chairs Westlake Financial Services, proposed his company could cover the bond when it was later reduced to $175 million, thereby preventing a significant liquidity crisis for Trump.
This decision wasn’t taken lightly. Hankey and his wife Debbi initially considered the proposition as Trump faced the daunting task of raising the funds to cover the bond. Despite Trump’s assertion that he could manage the bond himself, his team reached back to Hankey, leading to an agreement where Hankey’s company would back the bond for a “modest fee,” the specifics of which remain undisclosed. This strategic financial maneuver provided Trump the breathing space to retain his assets while potentially earning interest on them.
Hankey’s involvement has placed him in a unique position, merging the worlds of high finance and high-stakes politics. With a net worth estimated at $7.4 billion by Forbes, Hankey’s journey from a car salesman to a pivotal figure in the auto loan industry and real estate, including ownership of Xanadu, the former Malibu estate of Olivia Newton-John, encapsulates the American dream. Yet, it’s his recent venture into political finance that has cast a new light on Hankey, highlighting the intricate relationships between business magnates and political figures.
Hankey insists that his decision to provide the bond was driven by business acumen rather than political allegiance. Despite his support for Trump, Hankey emphasizes a non-partisan approach to business, with a history of donations across the political spectrum. He rationalizes his support for Trump in the New York civil case, relating to the accusations of fraud through asset overvaluation, as aligning with his own business experiences. According to Hankey, the exaggeration of asset values is not uncommon in loan applications, drawing a parallel between Trump’s defense and practices he observes within his own company.
This episode raises pertinent questions about the interplay between business interests and political influence, especially as the United States edges closer to another presidential election. For Trump, Hankey’s intervention represents a crucial lifeline, potentially averting a financial crisis that could have jeopardized his assets and future political ambitions. For Hankey, this involvement may herald a new phase in his career, where his financial acumen intersects more visibly with the political landscape, showcasing the complex dynamics at play between power, money, and the legal system.
