Ted Cruz's undisclosed $1M loan from Goldman Sachs

Heidi and Ted Cruz, March 23, 2015, Lynchburg, VA. (Photo Paul J. Richards/AFP/Getty Images)

Heidi and Ted Cruz, March 23, 2015, Lynchburg, VA. (Photo Paul J. Richards/AFP/Getty Images)


Senator Ted Cruz’s wife, Heidi, is head of the Southwest Region in the Investment Management Division of the Wall Street investment bank Goldman Sachs, on a temporary “leave” because of Ted’s presidential campaign.

Heidi Cruz is also a former investment banker for J.P. Morgan and a “historical member” of the Council on Foreign Relations (CFR), for which she served as a member of the CFR-sponsored Independent Task Force on the Future of North America, which a North American Union. (See “Is Ted Cruz an advocate of a North American Union?“)

Although Heidi Cruz presently is on leave, she was fully working for Goldman Sachs in 2012 when Ted obtained a low-interest $1 million loan from her employer for his senatorial campaign. To top it off, Ted Cruz did not disclose the loan as he is required by law.
The New York Times reports on Jan. 13, 2016, that campaign finance reports show that in the critical weeks before the May 2012 GOP primary, Ted Cruz 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 Cruz described it in an interview.
But a review of personal financial disclosures that Cruz filed later with the Senate does not show 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 a low-interest loan from Goldman Sachs, as well as another one from Citibank. The loans totaled $750,000 and eventually increased to $1 million before being paid down later that year. Both loans had floating interest rates around 3%, generally in line with rates available to wealthy borrowers at that time.

Neither loan appears in reports filed by Cruz’s senate campaign committee with the Federal Election Commission (FEC).

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.

A spokeswoman for Cruz’s presidential campaign, Catherine Frazier, acknowledged that the loan from Goldman Sachs, drawn against the value of the Cruzes’ brokerage account, was a source of money for the Senate race, but insisted that the failure to report the loan was “inadvertent” and that there had been no attempt to hide anything. Frazier did not address whether the Citibank loan was used also for Cruz’s Senate race.

Former election commission lawyer who specializes in campaign finance law Kenneth Gross, however, disagrees.

Gross 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: “They’re two different reporting regimes. The law says if you get a loan for the purpose of funding a campaign, you have to show the original source of the loan, the terms of the loan and you even have to provide a copy of the loan document to the Federal Election Commission.”

Specifically, in failing to report the two bank loans to the FEC, Cruz violated:

  • 52 USC 30104 (b)(2) (6), which requires the committee of a federal candidate to disclose on a report filed “loans made by or guaranteed by the candidate”; and
  • 52 USC 30104(b)(4)(d), which requires the reporting of “repayment of loans made by or guaranteed by the candidate”.

ZeroHedge points out that someone will have to file an official complaint against Cruz, and the FEC could impose fines. But if evidence emerges that his failure to disclose the loans was ‘knowing and willful,’ he could be criminally prosecuted by the U.S. Department of Justice, according to campaign finance experts.
Aside from Ted Cruz’s dishonesty in not reporting the loans to the FEC, there is also the matter of his hypocrisy.

In 2012 when he ran for the Senate as a darling of the Tea Party, and in his current presidential campaign, Ted Cruz presents himself as a populist for the “little man,” against Wall Street bailouts and the influence of big banks in Washington. Recently, 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.”

As financial analyst Martin Armstrong puts it:

The dishonesty here is that Cruz has pretended to stand against the bankers…. I am sorry. But Cruz is bought and paid for and would be in the pocket of the New York Banks no different than Hillary, Bush, or the rest of them who take money from this crowd. You do not forget to report a loan from Goldman Sachs when your wife is a managing director. Come on. How stupid do we have to be to entertain this excuse?

See also:

~Eowyn

Rate this post

Please follow and like us:
error0
 

Leave a Reply

avatar
  Subscribe  
Notify of
Michael Buccasio
Guest
Michael Buccasio

I like him. I believe he is going too be our next President…

josephbc69
Guest

Geldman Sacks –as I prefer to call it– has been in the forefront of mega-banks buying politicos for decades now. To show Michael Buccasio how astute they are, they were the biggest buyer of the Obamination. The money was funnelled through his Finance Chair, Penny Pritzker, whose father went right from Geldman Sacks to becoming a billionaire hotel owner and real estate developer in Chicago. The elites like to keep the money in the family, dontcha know, even if it takes borderline incest marriages.

marblenecltr
Guest

Facts we need to know. If information is withheld, the American public should not be greatly disparaged for bad decisions, that should go to those providing falsehoods as they withhold essential truth.

MA in MO
Guest

I have had this nagging feeling for months that Ted Cruz is a wolf in sheeps clothing. That he is not what he says he is or seems to be. Yes he held a fullibuster in Congress. I admired him for doing that. His wife working for Goldman Sachs and being a member of the CFR bothers me no end. Of course now they say that is no big deal and she is no longer associated with those two organizations. This article states that she is on leave from Goldman Sachs. It is also my understanding that while she was… Read more »

Kevin Lankford
Member
Kevin Lankford

None of that holds a candle to the propaganda bomb he dropped on the debate. Declaring with a strait face and mock intellect that his mother was a natural born american, and from the beginning of this nation that is all that is necessary to be a “Natural Born” U.S. citizen. Even mocking the true definition, insinuating Trump would not qualify because his mother was not born in the United States, so was a naturalized citizen, rather than “Natural Born”. What grated me all the more than his phony scholarly, legal, expertise, was how not one soul spoke up to… Read more »

marblenecltr
Guest

You are right regarding reference to Vattel and his “Law of Nations” and your explaining the cause of various irrelevant distractions, false and otherwise. Open the door for anyone from anywhere, if approved by the global puppet masters, to become President of the United States. You are exposing one of many tactics for “creeping globalism” as it races with creeping sharia towards a common objective: submission of mankind.

MomOfIV
Guest
MomOfIV

I prefer a POTUS to be born AND raised on american soil. neither obama nor cruz were born or raised here since infancy (even though obama claims he was born in hawaii) and just like obama, cruz was born to an american mother and foreign father on foreign soil. I think cruz provides good lip service, but I feel he is a wolf in sheep’s clothing deeply embedded with the banks. Both, cruz and obama, were first term senators when they launched their bids, were harvard graduates, law professors and changed their names (barry became “barack” and rafael became “ted”).… Read more »

Steven Broiles
Member

I am very disappointed to hear this about Ted Cruz. I knew his wife was affiliated with Goldman Sachs, and it is interesting to know she was also a member of the CFR (as is former NYPD Commissioner Ray Kelly). I am at a loss as to how to say this was a simple mistake or an oversight, and I’m surprised. Ted Cruz has said a number of things I agree wtih. (Although I do not believe he is a natural born citizen).
Sigh.

evh
Guest
evh

Politics being what it is, it is always good to see where the candidates get their money. If they get it from Wall Street and the big bankers, there is a chance that they will be backing their interests instead of our interests.

truckjunkie
Guest
truckjunkie

As more information comes out, it’s now obvious to me that there is NOBODY who would qualify to be President. So far, EVERY DAMNED CANDIDATE either HAS something already brought to our attention that is sub-par or WILL have, because nobody is PERFECT. Therefore, maybe we should ALL vote for whoever our favorite write-in might be. Or maybe we could all call for a conversion to a Board of Directors of the USA. We can now concede that the United States of America will soon become the United Socialist States of America, because WE couldn’t find ANYONE who met our… Read more »

WK
Guest
WK
TrailDust
Editor
TrailDust

Goldman Sachs has been buying influence for a long time. This is the exact thing that makes me distrust Ted Cruz.

trackback

[…] Ted Cruz’s undisclosed $1M loan from Goldman Sachs […]

trackback

[…] Ted Cruz’s undisclosed $1M loan from Goldman Sachs […]