Posted on 01/14/2016 10:02:14 AM PST by Isara
Yesterday, the New York Times ran and “investigative” piece on Ted Cruz’s finances. I their story they point to an alleged failure by Ted Cruz to report a loan he received to finance his campaign:
Those reports show that in the critical weeks before the May 2012 Republican primary, Mr. Cruz - currently a leading contender for his party's presidential nomination - 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 Mr. Cruz described it in an interview with The New York Times several years ago.
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. The loans totaled as much as $750,000 and eventually increased to a maximum of $1 million before being paid down later that year. There is no explanation of their purpose.
Neither loan appears in reports the Ted Cruz for Senate Committee filed with the Federal Election Commission, in which 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. There is no evidence that the Cruzes got a break on their loans.
So he got a loan to finance his campaign, he didn’t get special treatment on the loan, but he failed to report it. But the hypocrisy:
There would have been nothing improper about Mr. Cruz obtaining bank loans for his campaign, as long as they were disclosed. But such a disclosure might have conveyed the wrong impression for his candidacy.
Mr. Cruz, a conservative former Texas solicitor general, was campaigning as a populist firebrand who criticized Wall Street bailouts and the influence of big banks in Washington. It is a theme he has carried into his bid for the Republican nomination for president.
Earlier this year, 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."
This is an administrative error that can be fixed by filing an amendment. But the GOP establishment, as reflected through their mouthpiece Jennifer Rubin, thinks this is the silver bullet they were in search of: 10 reasons that Goldman Sachs loan is a nightmare for Ted Cruz.
The GOP is lucky to find this out now. Imagine what would happen if the party nominated someone with this to go up against the Clinton attack machine. It's one more reason not to nominate someone with such a thin public record who has never been thoroughly vetted.
Right, like a paper mistake is going to kill a candidate when a federal investigation of the Clinton Foundation won’t bother Hillary.
EXCEPT.
It really isn’t entirely true.
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Ted Cruz’s primary runoff against Dewhurst was July 31, 2012. He publicly disclosed the margin loan July 9, 2012. pic.twitter.com/8yyV4zxrV9 - Phil Kerpen (@kerpen) January 14, 2016 |
And the loan had been reported on in the press in 2013
As of the end of 2012, Cruz listed a "Loan to Ted Cruz For Senate" as an asset valued at$500,001 to $1 million. However, because of the 2002 changes to campaign finance law, the committee is limited to making loan repayments to the candidate (1) from funds received before an election, or (2) $250,000 from funds received after an election. Because of earlier loan repayments, as of the end of 2012, the committee could only legally repay the candidate $298,000. This includes $48,000 for his outstanding primary election loans, and $250,000 for his outstanding runoff election loans. … 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.
Cruz took out the loan before his primary campaign against David Dewhurst. It was disclosed at the time, though apparently not carried forward. It was reported on in the press in 2013 and, to make matters worse, Cruz is going to be left holding the bag for the loan because the election committee can’t legally repay him. So Rubin’s fulmination is wrong. And Cruz has explained the circumstances, so it isn’t like there is deception involved:
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Here’s what @tedcruz told reporters tonight in Dorchester, S.C., about the @nytimes report on his undisclosed loan: pic.twitter.com/AWtgIYJQp4 - Patrick Svitek (@PatrickSvitek) January 14, 2016 |
There are two take aways from this story. The first is that the loan was disclosed during Cruz’s primary challenge to David Dewhurst. The fact that the loan was not carried forward on his general election documentation is not a deal of any type. The loan was not hidden and Rubin’s pantie wetting fit over hypocrisy is just as dumb as she is. The law can be complied with by filing an amended report which Cruz has indicated he will do. The second take away is “is this all ya got?” Really. You investigate a man’s financial disclosure and the best you can come up with to justify your labor is a loan that was disclosed on one report and not disclosed on a second report but was not improper in any other respect?
And maybe there is a third. Just how good is the NYT when it misses stuff that is on the internet and can be found via a Google search? Or did it miss it?
Yes... so off with his head.
I was sort of hoping for an honorable reason.
This is all they got-distortions and out right lies.
I guess the Bush machine.
I would bet the Bush machine is behind this stupid nothing.
Cruz is toast...he will not survive this.
No, I didn’t say that. The form is obviously not the one that was filed with the FEC. Yes he may have disclosed his loan to the public or on other forms but not to the FEC as required. Any consequence of failing to do so is his to bear.
That is minor stuff and the average person is not concerned with those type of details. People have become so desensitized that it’s going to take a lot to change their minds. Most people already have their minds made up on who they ‘don’t’ like.
Start here. Ask yourself: How many would this employer of Spanish speaking cooks, dishwashers, maids, groundskeepers, and construction workers call "the good ones"? Do you really think he's going to commit economic suicide?
You did not really make it more clear, but I figured it out.
You are saying Trump will normalize so many current illegals as citizens, who can vote and will vote for Dems, that it won’t matter if the GOPe is marginalized.
You are saying Trump will create a permanent Democrat majority if elected.
Correct?
I recall the time we borrowed against our brokerage account to help purchase a new home. I was able to borrow up to half the value of the account.
Well, we did just that and wouldn’t you know that within a short while before I was able to close out the loan the market made an adjustment and margin calls started to flow in. What a mess.
So, ted borrowing 1,000,000.000 was against a brokerage account worth in excess of 2,000.000.000.
Not a good idea even though the wife being the big breadwinner was probably at the 300,000.000 income level at the time.
Correct.
As you’re getting at, the FEC dates exist FOR A REASON, and to ‘forget’ to include something on a report, whether on purpose or not, provides the same level of deception, and the appearance of trying to get around the law.
I still like Cruz, but his non-disclosure, intentional or not, did help him in an unfair way, and that is a LEGITIMATE story.
Yes, something doesn’t add up here, and they are the ones who supposedly the ones who can’t stand the media, but they work in tandem with the media to take Ted Cruz down.
After I was ambarassed by the Breitbart ‘drive-by’ report about Cruz’ mom being registered to vote [seems debunked to me], I’m feeling more cautious now about this issue. You really seem to master the facts here.
So ...
Update: Cruz Did In Fact Disclose the Goldman Sachs Loan
http://www.freerepublic.com/focus/news/3383599/posts
That is a dishonest title, right? A watered down disclosure that was NOT to the FEC. And Red State is essentially being dishonest?
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