It's The Money, Stupid

Headline Translated:

Billionaire demonstrates next level usury

And does this not pose a threat by way of furthering Trump's graft?

How long before we decide coin-operated politicians need to be driven out, and not molly-coddled?

How a California billionaire known for auto loans provided Trump’s bond

Don Hankey, who made a fortune offering high-interest auto loans to customers with poor credit, said providing the $175 million bond to Trump is a good business deal

As former president Donald Trump struggled last month to post a bond for more than $450 million to keep authorities from seizing his properties, California billionaire Don Hankey and his wife, Debbi, started discussing a solution: Hankey’s business could cover it.

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Hankey, a Trump supporter who made a fortune providing high-interest auto loans to customers with poor credit, soon reached out to Trump’s team to negotiate a deal that would allow Trump to stay the penalty while he appealed a massive New York civil fraud judgment. But when a court reduced the bond to $175 million last week and Trump said he had the cash to post it himself, the matter seemed moot, Hankey told The Washington Post.

Then, to his surprise, the Trump team last week revived the talks and asked Hankey if he would back the new amount. Hankey promptly agreed. He said that his company is charging Trump a “modest fee,” which he declined to disclose, and that the arrangement allowed Trump to hold onto his money, adding, “At least he’s getting interest on his collateral.”

With the bond, which Trump posted Monday, Hankey appears to have facilitated a final step in Trump’s narrow escape from a cash crunch that a few weeks ago had the New York attorney general vowing to come after his assets and experts wondering if he would have to file for bankruptcy as he faced more than half a billion dollars in penalties from two civil cases, with only weeks to find the money.

The financial boost for the presumed GOP nominee has thrust Hankey into the midst of a presidential campaign, bringing a new national profile to a colorful 80-year-old worth $7.4 billion, according to Forbes, who worked his way from car salesman to major player in the car loan industry and owner of Xanadu, formerly Olivia Newton-John’s Malibu estate. If Trump is elected, their relationship could come under new scrutiny if the government is involved in matters affecting Hankey’s business.

Hankey said the bond, which was provided by one of his companies, a subsidiary of Knight Insurance, was a good business deal, not a political statement.

“I’m chairman of the board of several companies, and we just carry on our business and we try to stay away from political issues or taking sides,” said Hankey, who said he has been a Trump supporter “and I will support him in the future, but I wouldn’t consider myself a major supporter.” He said that while many of his contributions have gone to Republicans, he has also donated to Democrats.

Hankey also said he provided the bond to Trump in part because he agreed with the former president’s defense in the New York civil case, in which he was convicted of committing fraud by overvaluing his assets and getting loans at lower rates than otherwise would have been available. Trump argued that even if the property values were overstated, it was a common practice and that the loans were repaid in full.

Hankey said that one of his businesses, Westlake Financial Services, provides loans to 1.5 million customers and that “quite often, when credit statements or financial statements are submitted to us, the values are exaggerated on some of the assets. … I would say it probably happens on 75 percent of our applications.”

The Trump campaign did not respond to a request for comment, referring instead to a post by the former president on his social network, Truth Social, in which he said, “I had to pay New York State in order to appeal a corrupt decision by a biased, crooked and highly overturned judge.”

Hankey is also the largest individual, non-institutional shareholder of Axos Bank, a little-known online company that in 2022 provided $225 million in crucial loans to keep Trump’s businesses afloat after many of his longtime lenders cut ties in the aftermath of the Jan. 6, 2021, attack on the U.S. Capitol. Hankey said he was unaware of the Axos loans until after they were provided to the Trump Organization. Axos’s president and chief executive previously told The Post he approved the loans because they were profitable for his bank, not for political reasons.

While not as well-known nationally as some other billionaires who support Trump, Hankey is a prominent figure in California, where his best-known business has revolved around providing high-interest auto loans to customers with poor credit. Remembering how he once had to turn away such customers when he was a car salesman, he said, he established a business that provided loans to higher-risk customers at higher rates.

A 2015 article in Forbes magazine described Hankey calculating how he might provide a hypothetical customer with a low credit score a loan at 23.99 percent. The article said that his company at the time had 336,000 outstanding car loans from 23,000 auto dealerships, and that his company repossessed 250 cars per day because of problems with repayment.

While the business provided financing to many customers who couldn’t get it elsewhere, the U.S. Consumer Financial Protection Bureau found that it sometimes went too far.

The agency on Oct. 1, 2015, announced that it had ordered Westlake Financial Services and another company, Wilshire Consumer Credit, to provide $44.1 million in relief to customers and to pay a civil penalty of $4.25 million for what the agency called “illegal debt collection tactics.” The news release did not name Hankey, and he was not accused of wrongdoing. Hankey said in the interview that the companies relied on an “electronic program” and that he didn’t think they did anything wrong.

In the bank case, brought by New York Attorney General Letitia James (D), state Supreme Court Justice Arthur Engoron ruled in February that Trump, several of his companies, his two elder sons and former executives were civilly liable for fraud by lying about the true value of his assets to obtain better rates.

Attorneys for the Trump Organization and family have argued that the company was engaged in normal business practices and that the judge’s financial penalty was wildly excessive and ought to be waived or reduced.

After Engoron’s ruling, Trump moved to appeal — but first needed to either post a bond of more than $450 million to stay the financial penalty, or pay it. Weeks later, Trump’s attorneys told the court that he couldn’t do so after approaching 30 surety companies.

But the Hankeys had already begun discussing a potential deal. Hankey said his wife, Debbi, first suggested providing the bond, and then contacted a friend who knew the campaign and connected them with Hankey.

A round of negotiations soon commenced, but last week, an appeals court panel in New York ruled that Trump needed to post only $175 million to appeal.

“We thought our negotiations were finished,” Hankey said. “And we were thanked by the Trump Organization.”

But Trump’s company soon reached out again. “They called back and asked us if we would put up the bond for $175 million,” he said.

It took only a few days to complete the new deal.

By posting the $175 million bond Monday, Trump appeared — at least for now — to escape from a financial jam that weeks ago appeared so untenable that experts wondered if he would file for corporate bankruptcy.

Instead, he has gained stays in the two most daunting civil cases against him without having to forfeit any of his assets or sell any of his properties. Nor did he have to touch stock he has in his social media company, Trump Media & Technology Group Corp., a stake that was still valued at around $4 billion Tuesday afternoon despite the stock price’s recent slide.

Nonetheless, depending on how the appeals process plays out, Trump still may face substantial judgments in the bank case as well as in an unrelated defamation case, in which an insurance company posted a $91 million bond.

By using the bonds and the appeals process, Trump has given himself additional chances to argue his position in court, in front of different judges, and — perhaps most important — gained more time to pay any penalties that are ultimately levied upon him.

Robert E. Malchman, a longtime New York lawyer who has been following the bank case, said that the appellate court’s decision to reduce the bond amount had given Trump a lifeline and that James will probably now have to press her case well after the election through the appeals process.

Trump still may face the full penalties, Malchman said, even if he returns to the White House.

“He can be president of the United States again, but that’s not going to affect his civil judgments,” he said.

He said Trump remains under the purview of a court monitor, former judge Barbara S. Jones, who must approve major financial transactions by the Trump Organization. And he can no longer use the money he has provided as collateral for the bond for other purposes, which could strap him financially. “That’s $175 million that you can’t use for anything else,” Malchman said.

Hankey said he has never spoken to Trump. But after the bond deal was made public, he heard from one of Trump’s sons, who effectively runs the company.

“I talked to Eric Trump this morning,” Hankey said. “He called and thanked us for posting the bond.”

President Underwood

Yeah, yeah, it's Kevin Spacey. For just a bit, pay attention to the writing - what the character says, not the off-camera shittiness of the actor.

Quick Question

Why is this shit OK?

Politics is undoubtedly the Blunt family business: His wife, Abigail, is the top D.C. lobbyist for Kraft Foods. His son Matt served one term as Missouri governor and now leads the main lobbying group for Detroit automakers. Son Andy and daughter Amy are both lobbyists in Missouri; Andy is managing his father’s Senate campaign.

A Giant Killer

Elizabeth Warren continues to be a great example of what political courage looks like; and what happens when somebody who knows a little something about leadership in a representative democracy stands up and speaks the kind of truth that makes oligarchs very uncomfortable.

(Reuters) - Big Wall Street banks are so upset with U.S. Democratic Senator Elizabeth Warren's call for them to be broken up that some have discussed withholding campaign donations to Senate Democrats in symbolic protest, sources familiar with the discussions said.

Representatives from Citigroup, JPMorgan, Goldman Sachs and Bank of America, have met to discuss ways to urge Democrats, including Warren and Ohio Senator Sherrod Brown, to soften their party's tone toward Wall Street, sources familiar with the discussions said this week.

Bank officials said the idea of withholding donations was not discussed at a meeting of the four banks in Washington but it has been raised in one-on-one conversations between representatives of some of them. However, there was no agreement on coordinating any action, and each bank is making its own decision, they said.

The amount of money at stake, a maximum of $15,000 per bank, means the gesture is symbolic rather than material.

Moreover, banks' hostility toward Warren, who is not a presidential candidate, will not have a direct impact on the presumed Democratic front runner in the White House race, Hillary Clinton. That's because their fund-raising groups focus on congressional races rather than the presidential election

Still, political strategists say Clinton could struggle to raise money among Wall Street financiers who worry that Democrats are becoming less business friendly.

The bit that I hi-lited in yellow wins this week's Corporate Bullshitter award.  A "cap" of $15,000 is window dressing.  It's "symbolic rather than material"?  Well dip me in shit and call me lonesome - whooda thunk it?  When you threaten to take that away from a candidate, it's a signal - it means you'll (prob'ly) be spending hundreds of times that amount on attack ads and mailings and blowjobs for the pimps at AEI so they'll pop up on DumFux News & Meet The Press Poodles to spout warnings about all the horribleness that's just gotta happen if Bad Ol' Perfesser Egghead won't let the Giant Vampire Squid continue sucking the life out of everything we thought we were all supposed to be working for.

But the red part's the real kicker.  More and more, it's not about who lives in the White House.  It's about who owns the US Senate and the Governors' mansions, and the state legislatures and on down the line.

So we're busy arguing over the Federal-level shit - where we get to have a president and a coupla dozen high-profile Senators and Representatives in order to maintain the illusion of "self-government" (and that's not bound to last much past the next few cycles if things don't change in a big fuckin' hurry) - while the American Aristocracy is even busier puppeteering the rubes into slashing and burning at the state- local- and municipal levels.

And one last item: I know it sounds like I'm railing against all the doom-and-gloom coming from "the right" by railing about doom-and-gloom from what you might see as "the left".  If that's how you hear it, then you've internalized all the Middle-Ground bullshit we hear every day from practically every media outlet everywhere, and you must get the fuck over it.  

The difference is that I'm arguing in favor of the firewalls that have to be in place as a way of preventing the toxic and corrosive effects of having too much power concentrated in too few hands, while the other side is pimping the wholesome goodness of outright authoritarian rule.

Get up on your hind legs and make some noise.

Ownership Society

Or more accurately: The owners of our society.

The last item on the To-Do List of Capital in the US is to purchase the government, which is all but complete now.



I don't advocate blowing shit up.  I don't condone it; I don't approve of it; I see nothing but rationalized stupidity in a term like Creative Destruction, and it doesn't matter if you apply it to wrecking our manufacturing sector or you try to use it to justify revolution.   I've spent my life trying to learn how to build things up and make them work, so I don't want anybody thinking I see anything noble or heroic in the actions of some jag-off who decides to set fire to something just to watch it burn.

But that's not to say I don't understand the impulse.

Closing The Circle

The continuing bad news in West Virginia is that Freedom Industries "Oops-ed" again by neglecting to mention there'd been a second chemical spilled at the same time as the MCHM (it appears they occurred at the same time - tho' nobody's saying for sure).  So there was also a spill of PPH (polyglycol ethers).  But since this other shit is a bit less toxic, we can just kinda overlook all that.

Let's leave aside for just a moment that a 30-year campaign to weaken shitcan our Regulatory Infrastructure continues to produce this ongoing nightmare scenario - from Enron to Wall Street to Deepwater Horizon to Mayflower AR to Charleston WV to everywhere else there's still one GOP/Glibertarian moron bitchin' about how da gubmint just needs to leave us all alone.

OK OK - try a little harder to leave all that shit aside, cuz here's the thing:  The circle is closing.

In West Virginia, the governor has come out and said he doesn't know what's up because he's not a scientist.  The scientists are a little baffled because they've all been working on something other than Air and Water Quality cuz a guy really can't make much of a living doing that anymore (or they're all working for the chemical companies, so they're not likely to bite the hand that feeds 'em).  Da Gubmint is pretty useless because the people who used to work on things like Environmental Health have been forced out by budget cuts etc (see "working for the chemical companies" above), plus the "regulators" who're still on the job were put there by Coin-Operated Politicians who needed to pay off their contributors by demonstrating how Business Friendly they really are.  Of course the private-sector Water Utility can't be expected to do anything because they're held hostage to Big Coal just like everybody else.

And now, Freedom Industries has filed for bankruptcy protection - with a twist:



Everybody's guity; nobody's responsible; nobody can be held accountable.

So they close the loop, which basically indemnifies everybody who by right should be crucified - which is exactly how it's supposed to work - and guess who gets left holding the bag.

One last thing - while everybody's running around yelling about how they don't know anything and they can't do anything, and and and - there is this little thing called The West Virginia Poison Center, and there's a "branch office" right there at The Charleston Area Med Ctr, 3110 Maccorkle Ave SE, Charleston, WV 25304   (800) 222-1222

A Blind Hog

Even a blind hog roots up an acorn once in a while.

With that in mind, let's check in with the late great WaPo, where it doesn't matter what's true or what's good or what's right (this is the age of "New Media" y'know - all that matters is delivering readers to advertisers).  But I'll pat 'em on the back on that rarest of occasions when they manage to break through the deafening clutter (that they're helping to create) with something that isn't just their usual Red Team / Blue Team bullshit:

For prosecutors, the key question is whether there was a clearly articulated “quid pro quo.” If so, the gifts were bribes. If not, they were gifts. To me, as an anthropologist, this largely misses the point.

Across the massive cornucopia of human culture, anthropologists have found relatively few universals. One of the strongest of these, however, concerns gift-giving. Gifts are given in all cultures, and to remarkably similar effect. As every graduate student in anthropology learns, gifts by their nature create social ties and a sense of reciprocal obligation. To give a gift is to expect something in return, though it undermines the power and mystique of the gift to spell out too clearly what that something is. It would be uncouth to give a friend a birthday present and say “now when it’s my birthday I expect you to give me this model of this product,” but the expectation of a well-chosen gift in return is no less powerful for that. The failure to give something in response can end a friendship.

 --and--

When politicians accept gifts such as Rolex watches and Oscar de la Renta gowns from multimillionaires, they often lack the means to reciprocate as equals. Surely, Williams has wealthy friends — his equals — with whom he exchanges gifts, but the McDonnells are not wealthy. From an anthropological perspective, Williams gave McDonnell gifts that the governor lacked the means to repay in order to subordinate him. Unable to afford, say, a $10,000 purse for Williams’s wife in return for what was given to his own wife, the governor can only return Williams’s generosity by lending him the power of his office in some way. Whether the expectation of a return was ever crisply articulated as a “quid pro quo” is really beside the point — even if it is the whole point to lawyers.

My guess is that Vaginal Bob will dodge the indictment, and maybe get slapped around a bit by an "ethics committee" stacked with politicians who will give us a great look at Irony In Action by deciding not to be so "hypocritical" as to condemn McDonnell for something most of them have been doing for as long as they've been in politics - all in the name of good government and bipartisanship and fairness.

But, of course in the end, it all fits neatly into the "Both Sides Do It" narrative.

If everybody does it, then there's nobody to hold anybody accountable for anything - and we're right back to status quo.  Never mind.