No, the scrappy grassroots candidate was financing himself. That’s what a margin loan is.
The Citibank 500k loan was not a margin loan and you know it.
You Cruzers really don’t want to talk about that unsecured loan for some reason. Let’s see the loan app on that one. Cruz needs to clear the air before Iowa voters cast their ballots.
Last I heard about it it was a secured loan. Early reporting was a margin loan. Now it's a line of credit. My unsecured line of credit was secured by my accounts. If I didn't pay, I could cover out of my accounts anyway. It's really not unusual at all. That's what lines of credit are for.
And any risk of malfeasance is offset by the bare fact that it was reported. What idiot would intentionally report it and then try to get away with it later? How absurd is that.
Do you know how easy it would be to launder into cash? If he was being nefarious, that is how it would go down.
The biggest change in the Cruzes’ finances in 2012 was the addition of the two bank loans, each valued at $250,000 to $500,000, during the first half of the year. One was a margin loan from Goldman Sachs. Margin loans, which are secured by holdings in a brokerage account, are often used to buy more stocks, but can be obtained for almost any purpose.
The other loan was a line of credit from Citibank. Even if the Citibank loan did not go directly into the Senate campaign, it could have freed up other assets for that purpose. While the Cruzes were well paid — he made more than $1 million a year as a law partner, and she earned a six-figure income as an executive in Goldman Sachs’s Houston office — they also had big bills, including mortgage payments and full-time child care.
Both loans had floating interest rates around 3 percent, according to Mr. Cruz’s Senate disclosures, which appear to be generally in line with rates available to wealthy borrowers at that time. During the remainder of 2012, the Cruz campaign repaid Mr. Cruz for about half of the money he lent. His Senate disclosures show that he and his wife paid off the Citibank loan that same year. As for the Goldman Sachs loan, it remains outstanding, though the balance has been reduced to between $50,000 and $100,000.
Loan Source Name Description City State Zip Loan Received Date Amount Memo Code
CRUZ, RAFAEL EDWARD TED LOANS RECEIVED FROM THE CANDIDATE AUSTIN TX 78701 03/31/2011 $70,000
CRUZ, RAFAEL EDWARD TED CANDIDATE LOAN FROM PERSONAL FUNDS AUSTIN TX 78701 08/07/2012 $150,000
CRUZ, RAFAEL EDWARD TED CANDIDATE LOAN FROM PERSONAL FUNDS AUSTIN TX 78701 07/23/2012 $250,000
CRUZ, RAPHAEL EDWARD TED CANDIDATE LOAN FROM PERSONAL FUNDS AUSTIN TX 78701 05/22/2012 $560,000
CRUZ, RAPHAEL EDWARD TED CANDIDATE LOAN FROM PERSONAL FUNDS AUSTIN TX 78701 05/18/2012 $400,000