Opponents jump on Cruz for undisclosed Goldman Sachs loan

posted at 8:01 am on January 14, 2016 by Jazz Shaw

How can you tell when somebody is doing well in an election? One good clue is that the oppo files will be opened up and dumped onto the table for the media to sort through. I have to wonder how long somebody has been sitting on this story about Ted Cruz and his wife taking out a couple of loans for roughly one million dollars which he then allegedly dumped into his first Senate campaign in Texas. But Cruz himself doesn’t seem to be disputing that facts in evidence, so let’s get to it. (Washington Post)

Sen. Ted Cruz (R-Tex.) downplayed a report late Wednesday that he had not listed personal loans he and his wife received before donating roughly the same amount to his 2012 Senate campaign, calling the matter an “inadvertent filing question.”

“The facts of the underlying matter have been disclosed for many, many years,” he told reporters in Dorchester, S.C. “All of the information has been public and transparent for many years, and that’s the end of that.”

Cruz and his wife Heidi obtained two loans, the New York Times reported Wednesday: one from Goldman Sachs, and another from Citibank that totaled about $750,000. The amount later increased to $1 million before being paid down. Heidi Cruz is a managing director at Goldman Sachs, currently on leave while her husband runs for president.

The first question which leaps forward is whether or not Cruz actually broke the law in this instance, which would be a significant problem for him on the campaign trail. David Knowles at Bloomberg seems to imply that he might have, but the details are a bit fuzzy.

The loans weren’t disclosed in campaign finance reports at the time, the newspaper reported. Candidates are required to file paperwork showing loans used to pay for their campaigns. Heidi Cruz is on leave from her job as a managing director at Goldman Sachs.

Yes, campaign finance laws mandate the disclosure of all money going into a campaign’s coffers, including loans. But it looks like Cruz did declare all of the money going in. His family essentially liquidated all of their assets to fund the Senate bid and one part of that process was taking a standard margin loan against their brokerage account. I think the question here becomes one of whether there is a difference between a campaign receiving a loan directly from a lender or an individual (the candidate in this case) taking out a personal loan and then applying the money to the campaign. The reason there’s a distinction here is that in the case of a failed election bid, the former scenario leaves the campaign account on the hook for repaying the debt, but in the latter case the individual is in debt as with any other personal loan. Cruz has asked the FEC for a ruling on that and said that he will amend his filing if called for. That might be all that’s required to satisfy the bean counters even if there was a foot fault here, because there doesn’t seem to be any question as to whether the total amounts were reported or if the loans were paid back. (One loan is already paid in full and two others have balances of less than $100K and are being paid off.)

Perhaps far more so than any legal questions, the media is waiting to see if any political hay can be made of this. The timing is somewhat awkward since Cruz just finished talking about Donald Trump and his New York Values, and now a loan from, *gasp* Goldman Sachs pops up in Cruz’s past. Of course, since Mrs. Cruz is a GS employee I’m not sure how much of a shock to the system this will be for anyone.

Does this rip any sort of a hole in Cruz’s campaign? As I suggested above, there is little doubt that somebody has been sitting on this tidbit for a long time and they waited until a couple weeks before the Iowa caucuses (and the day before what is possibly Cruz’s most crucial debate since he’s neck and neck with Trump in Iowa) to let it drop. Nothing like this happens by accident in American politics so it’s obviously a carefully calculated attack intended to take Cruz down. But it’s just such a wonky question, with the worst likely outcome being a discovery that the Texas Senator’s books listed some money in column A rather than column B. Is anyone really going to care?

Either way, expect to hear about it from his opponents tonight and on the campaign trail for the next two weeks. And if Cruz does wind up being the nominee the Democrats will raise that specter again in the fall. But if that’s the worst they can dig up on him I have a sense that Ted Cruz is going to be just fine.

CruzPoint


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Comment pages: 1 2 3

I’m in good company.

Cindy Munford on January 14, 2016 at 3:57 PM

Did B9 come over for a visit?

cozmo on January 14, 2016 at 4:21 PM

Weird comment which can only be explained by one of two possibilities. You don’t understand what “deceitful hypocrite” is, or you have never heard of a margin loan.

Cruz took out a margin loan on his remaining stock portfolio from his broker – which literally happens every second of every hour of every day in this country – and then loaned that money to his own campaign, which many politicians do.

Atlantian on January 14, 2016 at 11:14 AM

Most people’s aren’t getting loans from the same institution their wife works at which has at least a little appearance of nepotism (whether there was any or not, it has the appearance). Furthermore most people don’t then portray themselves as entirely self sufficient ‘up by your bootstraps’ types when they are in fact receiving huge loans from gigantic financial institution (that they apparently forgot to report).

As I said, he’s a deceitful hypocrite, and this reinforces that, but then that’s not really news and I don’t expect it to impact his campaign much at all.

Tlaloc on January 14, 2016 at 4:25 PM

Anti. Dont hold back, tell us how you really feel. :-D

Indiana Jim on January 14, 2016 at 4:26 PM

Get better soon A-C. Don’t harm the mind friend.

Schadenfreude on January 14, 2016 at 12:02 PM

Never! :)

Oh,no! Sorry to hear that. I hope you mend quickly.

Cindy Munford on January 14, 2016 at 12:08 PM

Thanks. :) I actually have been, in the sense I’ve had noticable improvement daily.

I’m a brisk walker, and can’t walk at even 1/2 of my normal speed, but I’m not complaining.

Anti-ControI on January 14, 2016 at 4:31 PM

Happy Nomad sais he started calling us howler monkeys AFTER we started calling him stupid for criticizing trump, which is a load of absolute CRAP!! He was happy to criticize trump in a respectful way, and we were happy to listen to him, until trumps popularity started to rise. And nomads unhinged rudeness towards trump supporters has grown along with it. Now hes just an unbearable, nasty piece of work…..

Indiana Jim on January 14, 2016 at 4:31 PM

Anti. Glad to hear youre on the mend. Youll be dancing the night away to elvis tunes b4 u know it. :-D

Indiana Jim on January 14, 2016 at 4:38 PM

Anti. Did you slip and fall? Or did u have a car accident?

Indiana Jim on January 14, 2016 at 4:41 PM

Anti-ControI on January 14, 2016 at 4:31 PM

Well take it easy but do everything your physical therapists tells you to do. They know their stuff.

Cindy Munford on January 14, 2016 at 4:45 PM

cozmo on January 14, 2016 at 4:21 PM

No, she’s sort close but never had the pleasure of a visit. Hope we will get around to it some day.

Cindy Munford on January 14, 2016 at 4:55 PM

Good luck with that. Manifestations of OCD in relation to any subject are very powerful.

Mimzey on January 14, 2016 at 3:01 PM

Are you even paying attention?! Of what do you believe I’m in need? ROFL!

You people with your notions of superiority are hilariously delusional. lol :D

Anti-ControI on January 14, 2016 at 5:04 PM

Cindy Munford on January 14, 2016 at 4:55 PM

I figured she was the good company.

cozmo on January 14, 2016 at 5:12 PM

As I said, I’m a deceitful hypocrite, and this reinforces that, but then that’s not really news and I don’t expect it to impact my standing on HA much at all.

Tlaloc on January 14, 2016 at 4:25 PM

Neitherleftorright on January 14, 2016 at 5:32 PM

Anti. Glad to hear youre on the mend. Youll be dancing the night away to elvis tunes b4 u know it. :-D

Indiana Jim on January 14, 2016 at 4:38 PM

haha it depends on how fast you think I should move! :)

Anti. Did you slip and fall? Or did u have a car accident?

Indiana Jim on January 14, 2016 at 4:41 PM

I slipped on a slope, and had no chance to catch my balance.

Well take it easy but do everything your physical therapists tells you to do. They know their stuff.

Cindy Munford on January 14, 2016 at 4:45 PM

I never saw a doctor. :/

I had numerous people tell me I should, but I haven’t gone, mostly because I can see/feel how I’m improving.

I make sure I walk gingerly, and take my aspirin. :)

Anti-ControI on January 14, 2016 at 5:48 PM

Mimzey. Lol!! A buddy of mine likes to wear tank tops. Could you diagnose his mental condition for me?? Crime-a-nettly….

Indiana Jim on January 14, 2016 at 5:50 PM

cozmo on January 14, 2016 at 5:12 PM

No, you.

Cindy Munford on January 14, 2016 at 5:56 PM

Anti-ControI on January 14, 2016 at 5:48 PM

I’m sure you know best but I hope you won’t hesitate if the progress seems to slow.

Cindy Munford on January 14, 2016 at 5:58 PM

When he ran for the U.S. Senate in 2004, Obama failed to disclose student loans. Yet during the 2008 campaign both he and his wife whined that they had “only recently” paid off the loans. Did Obama lie on his disclosure forms or did he lie during the campaign (or both)?

Colony14 on January 14, 2016 at 7:50 PM

Cruz wife working for Goldman Sachs is going to be a BIG problem in a general election, and now you have them funneling money.

Cruz would lose badly to Hillary.

BradTank on January 14, 2016 at 7:50 PM

The disclosure was made, the documentation produced and most media outlets have already update.
Cindy Munford on January 14, 2016 at 11:14 AM

Which have updated? I’d like to check their timing, and maybe compare it with HA.

GaltBlvnAtty on January 14, 2016 at 8:23 PM

GaltBlvnAtty on January 14, 2016 at 8:23 PM

Well actually I was wrong. He did put the loans on the Senate paperwork but apparently not the FEC. The information has been in the public domain since July of 2012 but he is probably going to have to update his FEC paperwork and apparently this happens all the time.

Cindy Munford on January 14, 2016 at 8:29 PM

Cindy Munford on January 14, 2016 at 8:29 PM

OK.
Thanks.

GaltBlvnAtty on January 14, 2016 at 8:32 PM

Typical weasel lawyer politician. And the least American of anyone currently running for President.

ceruleanblue on January 14, 2016 at 8:58 PM

When he ran for the U.S. Senate in 2004, Obama failed to disclose student loans. Yet during the 2008 campaign both he and his wife whined that they had “only recently” paid off the loans. Did Obama lie on his disclosure forms or did he lie during the campaign (or both)?

Colony14 on January 14, 2016 at 7:50 PM

Did someone hit you with the stupid bat? Seriously. There is no comparison between student loans and a loan to help finance a political campaign, especially from a firm that Goldman Sachs, one that the candidate’s wife works for. Something stinks and it ain’t dead fish.

Tarnsman on January 14, 2016 at 9:00 PM

Most people’s aren’t getting loans from the same institution their wife works at which has at least a little appearance of nepotism (whether there was any or not, it has the appearance). Furthermore most people don’t then portray themselves as entirely self sufficient ‘up by your bootstraps’ types when they are in fact receiving huge loans from gigantic financial institution (that they apparently forgot to report).

As I said, he’s a deceitful hypocrite, and this reinforces that, but then that’s not really news and I don’t expect it to impact his campaign much at all.

Tlaloc on January 14, 2016 at 4:25 PM

The Obama ’08 campaign deliberately disabled all anti-fraud and anti-ID theft protections from all credit card donations, thereby making it impossible to tell the difference between a genuine donation and a fraudulent one.

Apply the same standards and tell me what you get.

GrumpyOldFart on January 15, 2016 at 12:08 PM

Comment pages: 1 2 3