Sen. Ted Cruz (R-TX) on Wednesday disclosed a transaction in investment bank Goldman Sachs Group, Inc. GS, and this has raised some eyebrows.
What Happened: In a filing with the Senate, Cruz said his spouse sold Goldman shares on April 15 and the proceeds could be worth up to $500,000. Incidentally, the company reported its quarterly results on the same day. The sale was mentioned as part offloading of the position.
The filing was in line with the “Stock Trading on Congressional Knowledge Act,” which requires Congressmen to publicly file and disclose any financial transaction within 45 days of its occurrence. The values of trades are given in a range.
Incidentally, Cruz’ wife Heidi Cruz has been with Goldman since 2005 and she is currently serving as Managing Director at the firm.
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Why It’s Important: Goldman is among the big banks, which reported stellar results for the first quarter. The stock rallied about 3% to $400.88 on the day of its earnings release (April 15) before pulling back about 1% in the very next session.
Since then, the stock has reversed course and ended Wednesday’s session at $423.04, down 0.23% from its previous close, according to Benzinga Pro data.
The company reported first-quarter top- and bottom-line beats, thanks to strong trading and investment banking revenues. CNBC Mad Money host Jim Cramer picked Goldman as one of the big bank earnings he liked this season due to the strong fee income relative to net interest income.
Given details of the purchase of those shares aren’t readily available, it isn’t known whether the transaction netted the senator a profit.
When Cruz was panned for allegedly inciting the Jan. 6, 2021 insurrection, corporate America chose to distance itself from tainted politicians. Goldman was among them but it chose to stand by Cruz’s wife who was employed with them.
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