Former President Donald Trump faced financial challenges and a damaged reputation as he left the White House, but a new source of funding emerged to support his business empire. Axos Bank and its major shareholder, California billionaire Don Hankey, have collectively provided over $500 million in financing to Trump, helping him pay off debts and secure profits.
The financial assistance enabled Trump to make a $175 million down payment on a civil fraud penalty and escape a lease on his money-losing former hotel in Washington. While Axos Bank and Hankey have stated that the deals offer them financial benefits, concerns have been raised about potential conflicts of interest if Trump were to return to the White House.
Axos Bank and Hankey have faced increased scrutiny under Democratic administrations, with Axos being investigated by the SEC during the Obama presidency for alleged violations of anti-money laundering rules. Hankey's company, Westlake Services, paid millions in penalties for illegal debt collection tactics and vehicle repossessions.
Axos Bank defended its lending to Trump, stating a low risk exposure of less than $100 million. The bank's CEO made a campaign donation to Trump, but both Axos and Hankey denied political influence in their decision to lend to Trump.
Axos Bank provided $225 million in loans to help Trump pay off debts on Trump Tower and his Doral golf course resort. Additionally, the bank facilitated a $190 million loan for a hotel sale in Washington, benefiting Trump's companies with a substantial profit.
Most recently, Hankey's company, Knight Specialty Insurance, posted a $175 million bond for Trump's civil fraud trial appeal. Despite objections from the New York Attorney General's office, Hankey maintained that his decision was not politically motivated.
Questions remain about the relationship between Hankey, Trump, and potential conflicts of interest. Critics of Trump's presidency continue to scrutinize the financial transactions and connections involved.
