Why Senator Cruz' Undisclosed Goldman Loan Is A Real Problem

Tyler Durden's picture

The recent revelation that Republican hopeful Ted Cruz failed to disclose a 2012 $1 million loan from the Wall Street investment bank, Goldman Sachs, raises legitimate legal concerns, and could spell trouble for the presidential hopeful. As Mediaite.com's Rachel Stockman reports (via LawNewz.com),

The New York Times first reported that campaign disclosure reports show that before a scheduled run-off in the May 2012 senatorial election, Cruz received a low-interest loan from his wife’s bank, which his campaign committee never reported to the Federal Election Commission.

 

The Cruz camp is brushing this all off as a BIG oversight.  Cruz promised to immediately amend the filing if there were any problems. The Texas Senator said that he and his wife put their liquid net worth into the campaign and the loans in question were “disclosed over and over and over again.”

 

That’s great but here’s the problem: what he did could still be a violation of federal law.

Here is what Cruz told CNN last night:

“The fact that the information was out there somewhere doesn’t negate the fact that it wasn’t disclosed on the candidate’s campaign disclosure… that’s a violation of federal law,” Paul Ryan with The Campaign Legal Center told LawNewz.com.  The group is a nonpartisan, and goes after Republicans and Democrats alike for campaign finance violations.

To be clear, here’s the federal law that Cruz may have violated:

52 USC 30104 (b)(2) (6) 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) requires the reporting of “repayment of loans made by or guaranteed by the candidate”

So the question is, what can happen next? Clearly someone will have to file an official complaint (I have no doubt that will happen). If they do, the FEC could impose fines.

The real problem for Cruz is if evidence somehow emerges that this was ‘knowing and willful.’ If that could be demonstrated, then Cruz could potentially be prosecuted criminally by the U.S. Department of Justice, according to campaign finance experts. Cruz insists that it’s not.

“The bottom line – any money that is obtained or received to fund a campaign needs to be reported,” Ryan said.

As Martin Armstrong concludes,

The dishonesty here is that Cruz has pretended to stand against the bankers. “Like many other players on Wall Street and big business, they seek out and get special favors from government,” Cruz told the New York Times previously. How dishonest is this statement and then forgetting to report a loan from Goldman Sachs? His wife Heidi, is a managing director at Goldman Sachs and has taken a temporary “leave”during his presidential campaign.

 

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?

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Wulfkind's picture

Cruz's wife was a Goldman Sachs hedge. They saw an up and coming Senator and plied her with a job to gain access to him.

Buh bye Cruz.

Xibalba's picture

The guy even looks like a vulture.  Probably got beat up every day and now wants to psychopath his way to vengeance. 

Boris Alatovkrap's picture

Please, you are not necessary to defame appearance of what is possible first US president from Canadia.

Xibalba's picture

If they were gonna break all the rules...at least let Arnold run.  #Schwarzeneggerforprez

SuperVinci's picture

This is the guy from canada or the one from cuba? So many commie infiltrators...hard to keep track.

Hillary for Prison 2016!

 

Go Trump!

Scooby Dooby Doo's picture

This Pinocchio nose will lie his way out of it.

He said taht President Trump is too New York for the country. He's definitely antisemetric.

BaBaBouy's picture

SACKS Vampire Squid Is EVERYWHERE...
Beware, Fucking Out-Of-Control GREED & USD's Drive Everything!!!

Silky Johnson's picture

I love that it's Paul Ryan that's breaking it off in his ass.

El Vaquero's picture

 

You do not forget to report a loan from Goldman Sachs when your wife is a managing director.

Myself and many others warned of this quite a while back.  Fuck Cruz.  He's just another banker shill. 

dfwpike's picture

Zero Hedge... You're referencing a New York Times article.  Hello?  The NYT is the most liberal anti-conservative, anti-freedom scumbag publication in America.

Most people on this site are probabaly Trump supporters.  I like Trump but like Cruz better.

SuperRay's picture

"How stupid do you have to be?"

I don't know. As stupid as Americans have proven themselves to be every election cycle?

RaceToTheBottom's picture

Quicken should step forward and take the heat.

Their political debachery module wasn't working well.

Or maybe it was?

The beta testers at GS thought it was great.

dfwpike's picture

All you Trump supporters who think Donald is a conservative/libertarian are going to be in for a rude awakening if he gets elected president.  Just sayin'

detached.amusement's picture

shoot the messenger because you dont like how he looks, hell with what he's saying?             

truth is truth no matter where it comes from, you  df-wipe

Pounder's picture

GS is not exactly in the business of underwriting personal loans. Could he have written a check against his(or her) assets and it went on margin? WTF?

ThroxxOfVron's picture

Goldman Sachs made a $1m loan against Cruz' ability to vote Goldman's will in the U.S. Senate.

Goldman Sachs made a $1m 'margin loan' against Cruz' less than $1m stock portfolio.

City_Of_Champyinz's picture

Sigh, this loan has been reported over and over again in multiple other federal filings, so to state that the loan has never been reported is simply not true.   The 'GS Loan' was a simple margin loan based on a portfolio of stocks that was used as collateral.  The media is attempting to make it look like Cruz received a super duper special loan from an evil bank, when it was the complete opposite.  Pathetic at best, a truly weak slur that will be forgotten about as quickly as it became an 'issue'.

The Polish Hammer's picture

And the media DID report on the fact that he DID disclose this loan.

Fun times!!!

From June, 2013:

 http://blogs.rollcall.com/moneyline/sen-ted-cruz-reports-half-million-as...

"Cruz does list on his personal financial disclosure report as liabilities two loans received in 2012. One was a margin loan of $250,001 to $500,000 from Goldman Sachs. The other was a line of credit of $250,001 to $500,000 obtained from Citibank."

WillyGroper's picture

speaking of GS...anyone seen this?

wonder if the homeless will get agenda 21 housing?

WTF...agreement in principle?

earnings next week should be interesting.

http://finance.yahoo.com/news/goldman-sachs-pay-2-4-212625291.html

Wulfkind's picture

I don't think it's the same Paul Ryan.

BaBaBouy's picture

Buy PHYS GOLD SILVER While U Still Can...

WillyGroper's picture

Posted this yesterday.

MA is missing the elephant in the room.

Revelation is at the end concerning his wife & it ain't GS.

https://www.youtube.com/watch?v=35kju4T1I1I

BullyBearish's picture

Oh yeah...I'm sure Shrump doesn't have a "relationship" with GoldNutsacks...

detached.amusement's picture

you spelled Drumpf wrong.  hell, so did Trump.

gizmotron's picture

 

 

Hillary for Prison 2016!

Go Bernie!

ZD1's picture

Go Bernie?

Bernie is a communist putz who has benefited from big government his whole life.

Xibalba's picture

Red Team v. Blue Team = Same filthy, shitty, and corrupt for-sale team. Just like the NFL, you think you're playing but really you're just a pawn to enrich the owners.

You think Trump is immune?  Wait until they fuck up his enterprise...he'll go soft just like the rest.

 

Good luck.  I'm expat.

upWising's picture

"With the Republicans and the Democrats, it's like Tweedle Dee and Tweedle Dumb.  There's not a dime's worth of difference between the two of them."
––George C. Wallace, 1968 

 

HowdyDoody's picture

These days it is Tweedle Dumb and Tweedle Dumber.

Theosebes Goodfellow's picture

~"If they were gonna break all the rules...at least let Arnold run."~

Screw that. Didn't you learn anythin by watching that pushover run California for 8 years? Arnie may be a big muscle guy but the man lacks a backbone.

Perimetr's picture

Do you think it is time for him to discose his collection of child porn?

BlindMonkey's picture

That would be handled quitely when the deep state has had enough of him.  The tell will be his resignation announcement that he wants to spend more time with the family.

dochood's picture

No, the NSA will disclose it after they upload it to his computer.

But it probably won't come to that.  Stink on Republicans is magnified 500X by the media, while it is dimished 500X on Democrats.  The press will harp on this until he's knocked out of the race.

BlindMonkey's picture

Boris, it is properly called Canukastan now.

Whalley World's picture

Boris, as a Canadian, I am overjoyed this Bozo is now disavowing his Canadian background.

Keep him, another bible thumping hypocrite.

Cynicles's picture

Apt follow up to the first POTUS from kenya

Boris Alatovkrap's picture

Easy money is tell story of politician for sale. "We will call it loan, but you are work for us!"

Wulfkind's picture

As with ALL debt....once you take a loan, you are owned by the Banks.

New England Patriot's picture

Cruz, perhaps as much as anyone else, stands for co-opting the Tea Party movement.

greenskeeper carl's picture

So cruz isn't "different" from the rest of them? Trying to work on my surprised face over here...

 

This, along with his bravery in not voting on the audit the fed bill, should hopefully finish him off. I haven't liked him from the first time I saw him. I didn't even need to hear him talk, and wouldn't care if he sounded exactly like Ron Paul in every way, just looking at a picture of him, I knew he was nothing but another shameless grifter like all the rest. Look at his stock photo. He just looks like the type of person who would piss on your head and tell you it was raining. If being a senator ever gets old, he would make a great used car salesman. Nothing but a shyster, as Ive said from the time he was elected to the senate.

pops's picture

Everything about him just screams "Flim-Flam Man"

SethDealer's picture

after watching some of the debate last night my first question is... Are these the only people in America that will take this job?? they are all so awful.

Wulfkind's picture

George Carlin :  "This is the best we can do folks.  GARBAGE IN....GARBAGE OUT ! "

chunga's picture

No normal, decent person can survive the horrible environment of politics.

Gadocat99's picture

You're so cute!  Whadda widdle cutie!  Look everyone, a whole group of believers in candidate differences!