Lockton president, golfing buddy, bond hunter

When Donald Trump argued before a New York court that meeting a $464 million bond requirement presents a “practical impossibility” the assertion came with the backing of Gary Giulietti, the president of North East Series at Lockton Companies, the largest private insurance brokerage in the world.

Guilietti, whose Palm Beach Gardens office is just minutes away from Trump’s Mar-a-lago, is no stranger to the high profile attention that surrounds the ex-president. Golf partner, business partner and staunch defender, late last year he reportedly said that Zurich Insurance Group’s attempt at due diligence was looking at “Airballs and witchcraft”.

During the fraud trial, he said he had received $1.2 million in commissions from the Trump Organization. He added that he hadn’t billed for his testimony because he anticipated that payment “would be included in our overall relationship year over year.”

Judge Engoron wrote that in more than 20 years as a judge, he had “never encountered an expert witness who not only was a close personal friend of a party, but also had a personal financial interest in the outcome of the case for which he was being offered as an expert.”

Giulietti, who has nearly five decades in the insurance field, has stated that the prospect of securing an appeal bond of this magnitude is practically unfeasible given the situation. Even if he found one, the likely cost would be $18.5million. Regular surety bonds offer 10-20% commissions.

Giulietti pointed out the reluctance of major bond underwriters, including giants like The Hartford, and Travelers, to consider Trump’s real estate as collateral. These firms typically cap single bond issues at $100 million, further complicating Trump’s ability to meet the bond requirements.

The implications of this financial impasse are profound. Giulietti estimated that to collateralize a bond and cover associated costs while ensuring operational liquidity, Trump might need to muster up to $1 billion. Despite the Trump organization’s strong liquidity position, accessing such an amount in cash or equivalents appears out of reach, so asset seizure is now a real possibility.

Giulietti, who has a distinguished career including a tenure as vice-chairman of Willis until 2000, another leading international broker, emphasized the unprecedented nature of a $464 million bond in the realm of privately owned companies. According to him, even entities with substantial real estate holdings would face insurmountable challenges without near billion-dollar liquidity.