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Ted Cruz failed to disclose a loan from Goldman Sachs for his 1st Senate campaign

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C

chadskin

Member
As Ted Cruz tells it, the story of how he financed his upstart campaign for the United States Senate four years ago is an endearing example of loyalty and shared sacrifice between a married couple.

“Sweetheart, I’d like us to liquidate our entire net worth, liquid net worth, and put it into the campaign,” he says he told his wife, Heidi, who readily agreed.

But the couple’s decision to pump more than $1 million into Mr. Cruz’s successful Tea Party-darling Senate bid in Texas was made easier by a large loan from Goldman Sachs, where Mrs. Cruz works. That loan was not disclosed in campaign finance reports.

Those reports show that in the critical weeks before the May 2012 Republican primary, Mr. Cruz — currently a leading contender for his party’s presidential nomination — put “personal funds” totaling $960,000 into his Senate campaign. Two months later, shortly before a scheduled runoff election, he added more, bringing the total to $1.2 million — “which is all we had saved,” as Mr. Cruz described it in an interview with The New York Times several years ago.

A review of personal financial disclosures that Mr. Cruz filed later with the Senate does not find a liquidation of assets that would have accounted for all the money he spent on his campaign. What it does show, however, is that in the first half of 2012, Ted and Heidi Cruz obtained the low-interest loan from Goldman Sachs, as well as another one from Citibank. The loans totaled as much as $750,000 and eventually increased to a maximum of $1 million before being paid down later that year. There is no explanation of their purpose.

Neither loan appears in reports the Ted Cruz for Senate Committee filed with the Federal Election Commission, in which candidates are required to disclose the source of money they borrow to finance their campaigns. Other campaigns have been investigated and fined for failing to make such disclosures, which are intended to inform voters and prevent candidates from receiving special treatment from lenders. There is no evidence that the Cruzes got a break on their loans.
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A Cruz spokeswoman replied:
The failure to report the Goldman Sachs loan, for as much as $500,000, was “inadvertent,” she said, adding that the campaign would file corrected reports as necessary. Ms. Frazier said there had been no attempt to hide anything.

“These transactions have been reported in one way or another on his many public financial disclosures and the Senate campaign’s F.E.C. filings,” she said.
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But there's a twist!
Kenneth A. Gross, a former election commission lawyer who specializes in campaign finance law, said that listing a bank loan in an annual Senate ethics report — which deals only with personal finances — would not satisfy the requirement that it be promptly disclosed to election officials during a campaign.
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BUT WHY DID THE CANADIAN TRY TO HIDE IT?
There would have been nothing improper about Mr. Cruz obtaining bank loans for his campaign, as long as they were disclosed. But such a disclosure might have conveyed the wrong impression for his candidacy.
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http://www.nytimes.com/2016/01/14/us/politics/ted-cruz-wall-street-loan-senate-bid-2012.html
 
H

Hopfrog

Member
cruzvsmccain.gif
 
H

HylianTom

Banned
Fantastic news for Trump. Iowa is looking more and more possible.

If he wins Iowa, that's a boost going into New Hampshire.
He wins in New Hampshire? It's over.

{and ivy has read my mind. It just makes sense.}
 
K

Kathian

Banned
I mean he paid it back. Likely he didn't have assets particularly liquid or which he felt would be worth more in a few months. So the loan seems quite normal.

Should have disclosed or for this very reason though.
 
D

demosthenes

Member
Kathian said:
I mean he paid it back. Likely he didn't have assets particularly liquid or which he felt would be worth more in a few months. So the loan seems quite normal.

Should have disclosed or for this very reason though.
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You're missing the point. He ran as a Tea Party candidate. A loan from Goldman Sachs goes against that.
 
B

Black Mamba

Member
Can the OP put that Cruz's wife was an executive at Goldman Sachs at the time which is why he intentionally hid the loan.

This bit of info is important! His wife!
 
O

onadesertedisland

Member
This is the kind of juicy shit the national Dems should be feasting on. One of the republican front runners financed their campaign through a low interest loan from a bank that had to be bailed out because they crashed the economy.
 
G

Guevara

Member
Just a regular dude, getting a cool $1mil loan from his wife's work or whatever, like we all do from time to time. No big deal.
 
A

ApharmdX

Banned
The honorable Mr. Donald J. Trump is above this kind of misconduct...
because his father left him millions of dollars.
 
B

Black Mamba

Member
demosthenes said:
From the article:


I think it's more that a loan from Goldman is against the Tea Party.
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Yeah, the loan wasn't given at some super special rate that doesn't normally exist so it was legal.

But come on, now. Why get a low-interest loan from them, then? His wife was an exec. Don't be naive.

He obviously didn't want this info to come out. It would look bad. Wife's huge financial firm bankrolls campaign, the headlines say!

chadskin said:
Ya'll should, you know, read the first bolded sentence at least before replying. ;p
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I meant in the Thread title. Sorry.
Click to expand...
 
T

Tobor

Member
Kathian said:
The Tea Party are against personal financing? It's a loan from a Bank. I mean does he keep his money in his mattress? No he has a Bank.
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He lied and said he financed his campaign by liquidating his assets. He also failed to disclose the loan in his campaign filings.

That he got a loan at all is not the issue.
 
N

numble

Member
Kathian said:
The Tea Party are against personal financing? It's a loan from a Bank. I mean does he keep his money in his mattress? No he has a Bank.
Click to expand...
If you claim you are using personal funds for a grassroots campaign but they are actually not personal funds, you may be lying.
 
T

Tobor

Member
My favorite part:

From the article said:
Earlier this year, when asked about the political clout of Goldman Sachs in particular, he replied, “Like many other players on Wall Street and big business, they seek out and get special favors from government.”
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You don't say!
 
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