Ted Cruz Didn’t Disclose Loan From Goldman Sachs for His First Senate Campaign

[Southron]

Now we probably know why he missed the Audit the Fed vote.

 

[timosman]

I am still not clear what is NYT role in all of this. Didn't they do the same thing to Ron in 2012 right before Iowa?

 

[YoBabyYoBabyYo]

He had a seven figure income and the assets to qualify for a loan like this. He would have qualified anywhere he went. It makes his story about putting all of his savings into the campaign slightly less than truthful. But he was still personally on the hook to pay this back, albeit it is easier to pay back when it is part of a political campaign where you have donors.

But if it gets people worked up I am all for it.

i don't know to many banks that would give a million dollar loan to a guy who is still paying off student loans and had put anything that he did have already up as collateral. If I was applying for a small business loan of one million and I had already sunk everything I had into the business, the bank would laugh at me. His connections via his wife at Goldman Sachs got him the loan so he could be their little puppet. Just like what Trump says. I have zero respect for Cruz ever since he said he would take Andrew Jackson off the $20 dollar bill. Combine this with bailing on Audit the Fed, you know who this guy is working for. I pray this opens the door for Rand to take off.

 

[kahless]

 

[GunnyFreedom]

I need help. A recent post on RPF's about donors revealed that Cruz got more million dollar donations than anyone else. Does anyone know where that post is? I need to cite that data on fedbook. ETA it was a bunch of charts

 

[fcreature]

I need help. A recent post on RPF's about donors revealed that Cruz got more million dollar donations than anyone else. Does anyone know where that post is? I need to cite that data on fedbook. ETA it was a bunch of charts

http://www.ronpaulforums.com/showth...the-Fed-Vote&p=6096579&viewfull=1#post6096579

 

[r3volution 3.0]

I need help. A recent post on RPF's about donors revealed that Cruz got more million dollar donations than anyone else. Does anyone know where that post is? I need to cite that data on fedbook. ETA it was a bunch of charts

 

[GunnyFreedom]

http://www.ronpaulforums.com/showth...the-Fed-Vote&p=6096579&viewfull=1#post6096579

Thanks a million, you rock!

 

[fcreature]

He had a seven figure income and the assets to qualify for a loan like this. He would have qualified anywhere he went. It makes his story about putting all of his savings into the campaign slightly less than truthful. But he was still personally on the hook to pay this back, albeit it is easier to pay back when it is part of a political campaign where you have donors.

But if it gets people worked up I am all for it.

I'm not so sure about that. There may be more to this story. I don't see anywhere where it says what type of loan he obtained. It does say at a low interest rate. How low? Was it collateralize? If this was just a personal loan with no collateral, laws may have been broken. Banks don't just give $1m loans on good faith. Sure, income can be used but there is no way he was making enough money to justify that. Sounds like this may have been a favor to his wife.

 

[GunnyFreedom]

Thanks for the help everyone, it was enormously useful.

 

[Krugminator2]

I'm not so sure about that. There may be more to this story. I don't see anywhere where it says what type of loan he obtained. It does say at a low interest rate. How low? Was it collateralize? If this was just a personal loan with no collateral, laws may have been broken. Banks don't just give $1m loans on good faith. Sure, income can be used but there is no way he was making enough money to justify that. Sounds like this may have been a favor to his wife.

It was a margin loan against his brokerage account with a three percent rate. In all non-retirement accounts you can use 2 to leverage. if you have 500k in a brokerage account you can buy $1million in securities. Instead of using the extra $500k in buying power apparently Goldman let him take that extra buying power out and use it for his campaign. The collateral is the equity in his account. I had never heard of this practice but it looks like it exists.

To me the bigger deal isn't getting a loan. It is one more example of him being less than genuine. He didn't take all his money and bet it on his long shot campaign. That is a lie. He is an okay Senator, but he isn't some superhero laying it all on the line like his followers think. He is a normal politician who is trying to brand himself a certain way.

 

[Chester Copperpot]

There has to be more to this story.. NOBODY liquidates all their assets on a gamble to run for an elected office..

Cruz had to have some sort of guarantee on winning.. im sure made easier by the involvement of GoldmanSachs... they had to give more than money.. they had to exert influence in some additional way

 

[Zippyjuan]

There has to be more to this story.. NOBODY liquidates all their assets on a gamble to run for an elected office..

Cruz had to have some sort of guarantee on winning.. im sure made easier by the involvement of GoldmanSachs... they had to give more than money.. they had to exert influence in some additional way

https://www.washingtonpost.com/blog...deal-not-as-much-as-his-opponents-would-like/

As the Times reports, Cruz likes to recount that he was so committed to saving the country by becoming a senator that he willingly sank his and his wife’s full assets into that effort. As he recounts, this is the pitch he made to his wife: “Sweetheart, I’d like us to liquidate our entire net worth, liquid net worth, and put it into the campaign.” She readily agreed, showing her faith in him and his cause.

There are a couple of things this story is supposed to communicate about Cruz. First, that he was so committed to saving America that he would take a great personal financial risk in order to get elected. And second, that while he’s not starving or anything, he’s a man of relatively modest means, so he can relate to ordinary people (despite the fact that Cruz’s wife was a high-ranking Goldman Sachs executive).

But the story Cruz tells isn’t accurate, because he and his wife didn’t “liquidate our entire net worth” to fund the campaign. It’s important to make clear that he gave the money to his campaign as a loan, not a contribution, so he was at least hoping it would be paid back. That was a risk, particularly if he lost — candidates often loan money to their campaigns, but much of the time that money doesn’t get repaid, as the Center for Responsive Politics reports. But according to my reading of Cruz’s documents on the FEC website, the campaign repaid Cruz $587,000 in 2012 and another $298,000 in 2013, for a total of $885,000 — not the total amount he loaned the campaign, but most of it. So he came out okay on the deal.

You might believe that the inaccurate story Cruz tells about liquidating his assets to fund his campaign means that he’s dishonest, which isn’t a crazy thing to conclude, though in the spectrum of campaign falsehoods it’s probably a misdemeanor. But do the loans themselves reveal anything meaningful? Not really. Yes, Cruz had the capacity to quickly obtain funds totaling seven figures from New York bankers, which means he’s not quite the reg’lar fella he might like people to believe. But we knew that already. He was a big shot lawyer earning a million dollars a year, and he went to Princeton and Harvard Law.

According to "Open Secrets" in 2011 his net worth was $1.8 million. https://www.opensecrets.org/pfds/summary.php?year=2011&cid=N00033085

His "salary plus bonus" that year was $1,573,543. https://www.opensecrets.org/pfds/otherdata.php?year=2011&cid=N00033085

And that does not include his wife's income and assets. She is a Vice President at Goldman Sachs.

 

[fcreature]

It was a margin loan against his brokerage account with a three percent rate. In all non-retirement accounts you can use 2 to leverage. if you have 500k in a brokerage account you can buy $1million in securities. Instead of using the extra $500k in buying power apparently Goldman let him take that extra buying power out and use it for his campaign. The collateral is the equity in his account. I had never heard of this practice but it looks like it exists.

Ah, that explains it. I did not see those details in the article.

 

[r3volution 3.0]

Cruz was asked about this in the debate just now, gave a rambling response.

 

[CPUd]

I need help. A recent post on RPF's about donors revealed that Cruz got more million dollar donations than anyone else. Does anyone know where that post is? I need to cite that data on fedbook. ETA it was a bunch of charts

Technically he has the highest percentage of people in his donor base whose donation was $1M or higher. example: If Jeb had 1,000,000 donors with 25% in the 1M column, while Cruz had 100,000 donors and 71% in the 1M column, Jeb would still have more million dollar donations than Cruz.

 

[GunnyFreedom]

Technically he has the highest percentage of people in his donor base whose donation was $1M or higher. example: If Jeb had 1,000,000 donors with 25% in the 1M column, while Cruz had 100,000 donors and 71% in the 1M column, Jeb would still have more million dollar donations than Cruz.

True enough, but in reality Cruz has a significant warchest, so even though the chart depicts percentage of the total for each individual, the statement remains true even if the actual charts themselves do not support it.

 

[CPUd]

True enough, but in reality Cruz has a significant warchest, so even though the chart depicts percentage of the total for each individual, the statement remains true even if the actual charts themselves do not support it.

Yes, and if you're not giving him a million or more, Ted Cruz has no time for you.

 

[LibertyEagle]

Meme reminded me of this thread, so here ya go-

She is A Director. Not THE Director. There are tons of them. I'm not saying it's good to be a Director at Goldman Sachs, but it makes you look stupid to be saying this as you are.

 

[Fivezeroes]

She is A Director. Not THE Director. There are tons of them. I'm not saying it's good to be a Director at Goldman Sachs, but it makes you look stupid to be saying this as you are.

All of those directors especially one married to a sitting US Senator, have lots of power. I find it amazing that she was promoted to director, a week before he took his seat as senator. Doesn't this sound a bit strange to you?