Posted on 01/14/2016 8:03:56 AM PST by conservativejoy
UPDATE : 10:25 pm EST: Following the release of the Times report, people uncovered the following document on which Cruz did, in fact, disclose the loan:
At this point, what does it matter?
There was an episode of the Colbert Report where Colbert was creating his Super PAC last presidential election (yes, he created a lefty Super PAC). He laid the forms out end to end. It covered a football field.
There is nothing deceptive or improper about taking a loan out against your own account so why was it not included?
Put the two together.
I want to know about the loans his mother took out! /sarc
How, exactly, am I misleading on it?
Because using your own assets is not the same as a massive loan. Goldman Saks didn’t lend them anything they didn’t already have.
But you are in “good” company, since the CNN reported tried to make it sound the same way.
You have to deal in facts. Under penalty of perjury, he did not include it. I don’t know why he didn’t. I just know that he didn’t report it. If you run for elected office and you have a huge loan - you might want to jog your memory and make sure you accurately fill out a form.
Of course, you would never let Hillary get a pass on this,would you?
Wrong, a loan is a loan and they charge you interest. Ever hear of margin calls?
Wait! Do you mean to tell me that the New York Times LIED about a Conservative? No . . . way!
But Cruz gave lawyer response, somebody tell him, time to be human, normal people.
If you read the Times article carefully, you will see that this disclosure is how they found out about the loan:
“A review of personal financial disclosures that Mr. Cruz filed later with the Senate does not find 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 the low-interest loan from Goldman Sachs, as well as another one from Citibank.”
So they got the info about this loan from this financial disclosure report.
Yep. You have a good day.
Question, Did Goldman Sachs have anything at Risk or did only the Cruzs?
This should be a non-story. Ridiculous to make a fuss over it.
Just because it is a loan does not necessarily mean there is nothing there.
What was the interest rate compared to other loans from that institution at the time?
Was the loan repaid in the amounts and time frame it should have been?
I am not suggesting Cruz or GS did anything wrong with this loan but when it comes to politicians and money people you have to look beyond the obvious.
Very large loan? He used $3.4 million in assets to open a line of credit for between $250,000 and $500,000, which he has already paid back.
How does getting a standard margin loan available from any brokerage change his image as a Tea Party outsider? Brokerage margin loans are not very different from credit card cash advance checks. You don't need to ask anyone for the loan. You just write a check. I'm not surprised he overlooked the need to report the loan. I'm surprised anyone has to report a margin loan. A home equity loan requires loan officer approval and a home appraisal. A margin loan is simply a matter of writing a check from the brokerage account. As long as the amount of the loan is no more than half the market value of the stocks in the account, the check will clear.
There are no favors involved, whether at Goldman or anywhere else. You can get margin loans at a discount broker with way better rates than at Goldman, which charges more because it's Saks Fifth Ave compared to something like E-Trade's Old Navy. Cruz likely did not have a choice about the Goldman account - as long as his wife worked there, his brokerage account had to be there so that it could be audited for insider trading.
It's kind of ironic that people think Cruz is the Wall Street candidate. I don't think you have any idea how despised Cruz is within Wall Street circles for engineering the government shutdown.
It's a margin loan, and, yes, it was massive. They lend him half the worth of whatever his stocks are. Cruz never disclosed this, and told people publicly he was putting every last penny of his own liquid networth into the campaign. Getting a loan off your own assets isn't the same thing. It's just setting up a new bill to pay according to whatever the terms of the loan are.
Have you ever traded stocks on margin?
It was a MARGIN loan according to the doc posted on this thread. There are SEC requirements. Rules and regs you have to follow.
Yes, it was a LOAN.
I don’t know what Sachs charges but here is the current rate at IB
100,000.01 - 1,000,000 1.36% (BM + 1%)
Under penalty of perjury. Scary. Can you file an amended FEC doc? Yes. Can you file an amended tax form? Yes. Can you file an amended pleading in court? Yes. Why?
Sometimes they need to be amended for an oversight.
Work at a law firm some time. They file amended docs daily. The fact that the disclosure was made on other forms shows there was no intent to hide the loan against his own account. One line on a form. The boo boo is fixed.
Worry about something a bit more substantive. Like Trump supporting nationalized healthcare or wanting touchback amnesty.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.