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Who put up Trump's bond? A subprime car loan billionaire who has run afoul of regulators (www.nbcnews.com)

submitted 7 months ago by [email protected] to c/[email protected]

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Don Hankey made a fortune building a subprime auto loan empire. Along the way, his companies racked up consumer complaints, regulatory fines and were sued by the DOJ.

Providing Donald Trump’s $175 million appeal bond when other insurers wouldn’t is business as usual for California financier Don Hankey. As chairman of the Los Angeles-based Hankey Group of Companies, which includes an insurer, a subprime auto lender and a commercial real estate investment firm, Hankey has amassed a fortune lending to borrowers other financial firms shun.

Hankey’s assistance to Trump has brought the little-known billionaire into the spotlight. But in recent years, several of his companies’ operations attracted the attention of the U.S. Justice Department, the Consumer Financial Protection Bureau and the California Department of Insurance. Since 2015, regulators have taken action against Hankey’s companies four times, public records show.

In 2017, for example, the Department of Justice filed a complaint in federal court in California against Westlake Financial, Hankey’s big subprime auto lender. With a network of 50,000 car dealerships and $3 billion in managed assets, Westlake Financial calls itself “The Yes! Yes! Lender.”

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[–] [email protected] 5 points 7 months ago

This isn't a loan. It's more like insurance.

A surety company promises to pay the bond if the defendant loses. So the financial status of the company is very important, and that's why this bond is raising eyebrows.