Thursday, November 6, 2014

Ted Cruz - He's Not One of Us

I haven't updated the financial information on Ted Cruz for some time but now that the mid-term election is behind us and Mr. Cruz seems to be in the news on a fairly regular basis, I thought that it was time for a brief update.

From Open Secrets, here is a listing of his assets for 2012:

His minimum and maximum net worth has risen substantially when compared to 2011; back then, his assets fell in the range between $1,795,049 to $4,427,000.  This rose to between $2,529,049 and $5,910,000 in 2012.  

Again, you'll note a fairly significant concentration in assets held with Goldman Sachs including a money market fund ranging between $500,002 and $1,000,000.  That may have something to do with the fact that his wife, Heidi Cruz, is a Managing Director at Goldman Sachs where she has been employed since 2005.  According to the New York Times and Huffington Post, this is where the Cruz family gets its $40,000 plus health care policy.

Now, let's look at the liability side of Mr. Cruz's portfolio for 2012:

His total liabilities in 2012 ranged from $750,003 to $1,500,000.  They included a demand margin loan from Goldman Sachs in the amount of between $250,001 and $500,000 which was paid off in 2012, a line of credit from Citibank in the amount of between $250,001 and $500,000 which was paid off in 2012 and his law firm's capital account in the amount of between $250,001 and $500,000 which was paid off in 2013.  

Now, let's look at his holdings in 2013:

Looking through his income statement, we see that most of his income outside of his salary comes from dividends (which receive a preferential tax rate).  He has substantial holdings in Chevron and Exxon Mobil (between $100,001 and $250,000 worth in each company), and, once again, we see that he has invested significant amounts in Goldman Sachs products of varying types.  He also has a substantial investment in four retirement plans totalling between $366,003 and $815,000.  His largest single asset is a loan to "Ted Cruz for Senate" under the company "Ted Cruz for Senate" in Austin, Texas in the amount of between $500,001 and $1,000,000.

In 2013, his liabilities were substantially different than those he declared in 2012:

His biggest liability is his $250,001 to $500,000 fifteen year mortgage (4 percent interest rate) held by JP Morgan.  He also has a margin loan for between $50,001 and $100,000 with Goldman Sachs.

I find it interesting to read through the personal financial disclosures of America's political elite.  It's always an illuminating experience, particularly when one considers how often politicians try to pretend that they are just "one of the sweaty masses" who are struggling to get ahead, just like we are and Mr. Cruz is no exception.

1 comment:

  1. If you could find out let us know who the poorest Senator is and a break down of their worth. I think your readers would love to see how well off even the poorest guy in the senate is.