How a California billionaire who made his fortune with auto loans saved Trump’s from ruin

California billionaire Don Hankey, who made his fortune providing high-interest auto loans to customers with poor credit, came to the aid of former president Donald Trump last month when Trump was struggling to post a $450 million bond to avoid seizure of his properties over a civil fraud judgment in New York.

Hankey, a Trump supporter, reached out to negotiate a deal through his company to cover the bond. Though the bond amount was later reduced to $175 million, which Trump said he could pay himself, the Trump team surprisingly revived talks with Hankey last week. Hankey agreed to back the new amount for a “modest fee,” allowing Trump to hold onto his cash while earning interest on the collateral.

By posting the $175 million bond on Monday through Hankey’s firm, a Knight Insurance subsidiary, Trump narrowly avoided a cash crunch as he faced over $500 million in penalties from two civil cases. The financial boost has thrust the 80-year-old Hankey, worth $7.4 billion per Forbes, into the national spotlight.

Hankey claimed providing the bond was simply a good business deal, not a political statement, though he has been and will continue supporting Trump. He justified the arrangement by stating his auto loan company often receives exaggerated asset values from applicants, similar to Trump’s alleged overvaluation of assets.

Hankey is also the top individual shareholder of Axos Bank, which provided $225 million in crucial loans to Trump businesses in 2022 after the January 6 Capitol attack led many lenders to cut ties.

While Hankey’s Westlake Financial Services has enabled loans for higher-risk customers, it was once fined $48.35 million for illegal debt collection tactics, though Hankey denied wrongdoing.