🌴 Cayman Islands linked to Trump's bail bond issuer

The Cayman Islands' financial services industry, recently removed from various grey or black lists, is under scrutiny once more due to its connection to the parent company that provided the bail bond for former US President Donald Trump's New York civil fraud case. In this case, Trump was found guilty of fraudulently inflating property values for financial gain and was ordered to pay a $464 million penalty. Initially, he was expected to pay the full penalty as bond while appealing the ruling, but this was reduced to $175 million. However, concerns have been raised over whether the insurer, Knight Specialty Insurance Company, is financially solvent or even allowed to operate in the state. 🏦

Knight Specialty Insurance Company is backed by its parent company, Knight Insurance, which is based in the Cayman Islands, a well-known tax haven. Companies often establish themselves in the Cayman Islands to reduce visibility into their business practices, avoid stricter US regulations, and make liability more difficult should problems arise. Critics worry that the company may not have the liquidity to pay on the bond when demanded. The fact that the reinsurer is based in a non-US jurisdiction could make collection very difficult. Meanwhile, Trump is back in court for the start of his criminal fraud trial related to alleged 'hush money' payments. 🌐