Boxed in..

 
The action taken by AG Latitia James, against Trump, may have a terrible effect on the tax payer money.

The action turned Trump into a special case where no-one wants to get involved. Insurance companies/Banks avoided providing Trump a letter of credit when they may become the target of the attorney general, or worse, having to try to collect from Trump’s illiquid properties.  If she moved to confiscate his properties. 

The properties have mortgages. A transfer of title of the properties would probably trigger the due on sale clause, i.e., the mortgage would have to be paid off. That means the NY taxpayers would have to pay up!

Worse, if NY state didn’t pay up, it would likely create a nationwide banking or insurance company crisis.  The lenders on the properties may have made loans to dozens of other banks or insurance companies, which means any losses incurred may spread throughout the banking or insurance industry in the U.S.

So, what is this all this about?   Just a thoght.