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Arthur Engoron

If Judgments Force Sale Of Trump Properties, How Much Would He Get?

After Judge Arthur Engoron handed down a judgment against former President Donald Trump in excess of $350 million on Friday, the ex-president may end up having to liquidate some of his assets to satisfy the court's obligations.

Trump attorney Alina Habba has said that her client plans to appeal the ruling, though he'll still have to put the money in a court-managed account while the appeals process plays out, in addition to the state-mandated nine percent interest for appeals of civil judgments. Daily Beast reporter Jose Pagliery tweeted his back-of-the-napkin math estimating that in order to appeal Engoron's judgment, Trump would have to set aside roughly $450 million when accounting for interest.

But Engoron's penalty is merely the second judgment Trump has been hit with in 2024. Earlier this month, a jury ordered the former president to pay writer E. Jean Carroll $88.3 million in compensatory and punitive damages for defamation. That's on top of a separate $5 million judgment Trump was ordered to pay Carroll in 2023. With all of these court-ordered penalties lumped together, that means Trump will be on the hook for nearly $450 million. And even if his bid for the presidency is successful this November, he'll still be required to pay those penalties. He's also prevented from running any New York-based business for three years.

In order for Trump to pay those judgments, he may have to end up selling some of his flagship properties in his real estate portfolio. Exactly how much his properties are worth is still a matter of debate, as Judge Engoron found Trump liable for fraudulently inflating the values of his assets, giving New York Attorney General Letitia James nearly all she was asking for in disgorgement penalties. But both the attorney general's office and various reports have found rough estimates for some of his most valuable assets.

The crown jewels of the Trump Organization are his Manhattan skyscrapers: Trump Tower (valued at roughly $117 million according to Forbes), Trump Park Avenue (valued at $135.8 million in 2020) and 40 Wall Street (pegged at $220 million by a professional appraiser in 2012). While it's unlikely he would move to sell these buildings out of his nearly two dozen residential, commercial and resort properties, they could feasibly cover the judgments depending on how appraisers would view them in 2024.

The Independent delved into other appraisals for some of Trump's other pricey properties outside of New York City, including his Mar-a-Lago estate in Florida, which is valued at roughly $20 million. The New York Attorney General's office cited a figure of $56 million for his Seven Springs property in Westchester County, New York (just north of the city). In 2022, Trump sold the Trump International Hotel in Washington, DC for roughly $375 million, which was enough to satisfy a $170 million loan from Deutsche Bank and pocket a hefty profit afterward.

Trump's legal woes in New York are far from over, however, with his first of four criminal trials scheduled for March 25 in Manhattan District Court. He faces 34 felony counts of allegedly falsifying business records related to a $130,000 payment to adult film star Stephanie Clifford in 2016.

Reprinted with permission from Alternet.

Business Economists Report Solid But Slowing Growth In Third Quarter

Business Economists Report Solid But Slowing Growth In Third Quarter

By Jim Puzzanghera, Los Angeles Times

WASHINGTON — Business economists reported solid but slowing growth at their companies over the summer as gauges of sales, hiring and profit margins fell slightly from the second quarter, according to survey results released Monday.
Despite concerns about economic conditions in Europe, respondents in the quarterly survey by the National Assn. for Business Economics said they were more optimistic about overall U.S. growth than they were in July.
About 85 percent said they expected total economic output, or gross domestic product, to expand by more than 2 percent over the next year. That compared with 77 percent with those expectations in the last quarterly survey.
“Business conditions continued to improve during the third quarter, albeit at a marginally subdued pace from that of the second quarter, and the majority of the NABE Business Conditions Survey panelists report strong expectations for continued economic growth,” John Silvia, the chief economist for Wells Fargo Securities who serves as the organization’s president, said in a statement.
The findings are in line with analysts’ forecasts for solid economic growth in the third quarter of the year, but a drop-off from the strong 4.6 percent annual rate in the previous quarter. Part of that robust second-quarter expansion was the economy catching up from a weather-induced contraction over the winter.
Sales growth at businesses slowed in the third quarter, with 49 percent reporting rising sales, compared with 57 percent in the previous quarter, the survey said.
The group’s overall sales index, which includes the percentage of firms expecting unchanged and falling sales, decreased slightly to 42 from the previous quarter’s 45.
Sales expectations for the next three months also were down, the survey said.
The percentage of economists reporting increased employment at their firms dropped to 32 percent in the third quarter, from 36 percent in the previous quarter, and expectations for hiring over the next three months also was down.
With several indicators running lower, the index for profit margins was off as well.
Although 30 percent of respondents said their companies’ profit margins had increased in the third quarter, compared with 27 percent in the previous quarter, the percentage of economists reporting falling profit margins rose to 14, from 8.
That caused the profit margin index to drop slightly.
The economists also weighed in on their expectations for when the Federal Reserve will start raising its benchmark short-term interest rate, which has been near zero since late 2008.
About 77 percent said they anticipated interest rates to begin rising in the second half of next year or later. Their views are in line with Fed analysts.

AFP Photo/Matt Sullivan

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Wal-Mart Cuts Profit Forecast As It Gears Up E-Commerce

Wal-Mart Cuts Profit Forecast As It Gears Up E-Commerce

By Veronica Smith

Washington (AFP) – Wal-Mart Stores lowered its 2014 profit outlook Thursday as it turns toward online sales amid weakness in its key U.S. market, still struggling with a fragile economy.

The world’s largest retailer posted a slight profit rise and better-than-expected sales for the second quarter, which ended July 31.

Wal-Mart cut its 2014 earnings per share forecast to $4.90- $5.15, from the prior estimate of $5.10-5.45, citing investments in e-commerce and higher health care costs than previously anticipated.

The outlook was lower than what analysts had expected.

The Bentonville, Arkansas-based company reported net income of $4.09 billion in the quarter, up 0.6 percent from a year ago. Adjusted earnings per share were $1.21, matching Wall Street estimates.

Net sales beat expectations, rising 2.8 percent year-over-year to $119.33 billion. Total revenue rose 2.8 percent to $120.1 billion.

Doug McMillon, Wal-Mart’s president and chief executive, said the discount retailer had clocked up encouraging performances in its international business, its new small-format “Neighborhood Market” stores in the United States and in e-commerce.

But U.S. comparable-store sales — sales in stores open at least a year — were flat in the last quarter.

“We wanted to see stronger comps in Walmart U.S. and Sam’s Club, but both reported flat comp sales. Stronger sales in the U.S businesses would’ve also helped our profit performance,” McMillon said in a statement.

Same-store customer traffic at Walmart U.S., the company’s largest chain, fell 1.1 percent, while traffic at membership chain Sam’s Club rose 0.3 percent.

For the current quarter, Wal-Mart said it expects U.S. sales to be “relatively flat.”

Wal-Mart is facing a sluggish retail market in the United States amid minimal wage growth and high unemployment as the economy still struggles to recover five years after exiting severe recession.

Greg Foran, the head of Walmart US since early August, said that the most notable operating headwind in the second quarter came from health-care costs, which increased $180 million from a year ago, “well above our initial estimates.”

Foran, who is in charge of more than 4,000 Walmart stores and 1.3 million employees, said that health-care costs were expected to grow more than $500 million for the fiscal year ending January 31.

For the quarter, sales gains were made by all the company’s divisions, with Walmart International pulling in the largest increase at 3.1 percent, topping Walmart US’s 2.7 percent rise.

– E-commerce in focus –

Global e-commerce sales grew about 24 percent in the quarter. The company said its four most important markets — the United States, Britain, China, and Brazil — saw double-digit growth.

“We remain focused on price investment across all our markets and expect to continue driving improved comp performance,’ said David Cheesewright, Walmart International president and CEO.

“I am pleased with the trends in many of our markets, which were driven by a continued focus on being the lowest cost operator.”

“Our investments in e-commerce and mobile are very important, as the lines between digital and physical retail continue to blur. Our customers expect a seamless experience, and we’re working to deliver that for them around the world,” McMillon said.

He said the company would invest an additional $160 million in e-commerce.

To lure more customers to its websites and better compete with online retail giant Amazon, Walmart recently snapped up companies specialized in data analysis and online marketing, and has begun rolling out a global technology platform.

The company just launched an online price-comparison app, Savings Catcher, to allow customers to get back the difference they paid when they find a local competitor offers a lower advertised price.

Shares in Dow component Wal-Mart were up 0.4 percent at $74.30 in late-morning trade on the New York Stock Exchange.

AFP Photo/Tim Boyle

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Ford’s U.S. Auto Sales Rebound In March

Ford’s U.S. Auto Sales Rebound In March

Washington (AFP) – Ford’s U.S. auto sales accelerated in March, pulling out of a February slump blamed on brutal winter weather, while General Motors delayed its results over a computer problem.

Ford, the second-largest U.S. automaker, said total sales in its home market rose three percent in March from a year ago, to 244,167 vehicles.

“March sales turned noticeably higher mid-month and finished strong,” John Felice, Ford vice president, U.S. marketing, sales and service, said in a statement.

The comeback came after Ford sales dropped six percent in February, in part because vehicle deliveries to fleet customers and parts to its factories were delayed by the severe weather.

The top U.S. automaker General Motors, meanwhile, announced that its U.S. sales report would be delayed by several hours “due to a computer systems issue that impacted dealer sales reporting.”

News of the glitch came shortly before GM chief executive Mary Barra was to testify to Congress in a hearing over why the company ignored a faulty ignition problem for a decade despite numerous accident reports and 13 deaths.

Analysts have already speculated that the trouble could cost the company billions of dollars in penalties and damages, in addition to the costly vehicle recalls.

Chrysler once again outpaced its rivals in March, posting a robust 13 percent year-over-year increase in U.S. sales to 193,915 units.

The U.S. unit of Milan-based Fiat Chrysler Automobiles has clocked in 48 consecutive months of year-over-year sales gains in the United States.

“We are entering the spring selling season on a high note as our Jeep and Fiat brands recorded their best sales months ever,” said Reid Bigland, head of U.S. Sales.

Fiat brand sales leaped 24 percent in March, the best sales month since the Italian auto brand returned to the U.S. market in 2011.

Mira Oberman via AFP