C M Y K Nxxx,2016-01-14,A,001,Bs-4C,E2

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VOL. CLXV . . . No. 57,111 © 2016 The New York Times NEW YORK, THURSDAY, JANUARY 14, 2016 $2.50 Cruz Neglected SAILORS’ RELEASE To Report Loan STAVES OFF CRISIS From ’12 Race FOR U.S. AND IRAN Money From Goldman Helped in Senate Bid KERRY HAILS DIPLOMACY

By MIKE McINTIRE How Patrol Boats Ended As Ted Cruz tells it, the story of how he financed his upstart cam- Up in Iranian Waters paign for the United States Sen- Remains Unclear ate four years ago is an endear- ing example of loyalty and shared sacrifice between a mar- This article is by David E. ried couple. Sanger, Eric Schmitt and Helene “Sweetheart, I’d like us to liq- Cooper. uidate our entire net worth, liquid net worth, and put it into the WASHINGTON — A crisis campaign,” he says he told his over the seizing of two American wife, Heidi, who readily agreed. patrol boats in the Persian Gulf But the couple’s decision to was averted Wednesday when pump more than $1 million into Iran returned the craft and re- Mr. Cruz’s successful Tea Party- leased their crews as Pentagon darling Senate bid in Texas was officials struggled to explain how made easier by a large loan from the boats had ended up near a Goldman Sachs, where Mrs. Cruz major Iranian naval base. works. That loan was not dis- Their quick release was hailed closed in campaign finance re- by the Obama administration as FRANCOIS MORI/ASSOCIATED PRESS ports. an unintended benefit of the new Those reports show that in the diplomatic relationship with Iran A Step Forward in Paris critical weeks before the May established by the nuclear accord Boris Buryj, a painter, set up shop at Le Carillon, which reopened Wednesday exactly two months after a terrorist attack. 2012 Republican primary, Mr. negotiated between Tehran and Cruz — currently a leading con- the United States and five other tender for his party’s presidential nations in July. The accord is ex- nomination — put “personal pected to go into effect next funds” totaling $960,000 into his week, ending the oil and financial U.S. Stocks Continue Slide on Fears of Slowdown Senate campaign. Two months sanctions imposed on Iran over PROPERTY SALES later, shortly before a scheduled the past decade, and giving it ac- Street calls a correction: a de- “When you change perceptions runoff election, he added more, cess to around $100 billion in fro- zen funds. By PETER EAVIS cline of 10 percent or more from for the growth rate of the third- bringing the total to $1.2 million GET U.S. SCRUTINY its most recent high. largest economic region in the — “which is all we had saved,” as Thanking the Iranians for their Hopes for a recovery in the The market decline indicates world,” said Jim Vogel, interest Mr. Cruz described it in an in- cooperation, Secretary of State United States stock market were that investors still see plenty of rates strategist at FTN Financial, terview with The New York John Kerry said Wednesday that Seeking Names of Secret dashed on Wednesday as invest- risks lurking, many of them “you have to reprice across all fi- Times several years ago. “we can all imagine how a similar ors’ deepening fears about the stemming from China’s slowing nancial markets to account for A review of personal financial situation might have played out Buyers Using Cash strength of the world’s largest economy. The persistent weak- that slowing growth.” disclosures that Mr. Cruz filed three or four years ago.” economies drove another wave of ness in the price of oil is another The last time stocks slid into a later with the Senate does not Mr. Kerry negotiated the re- selling. market indicator that has raised correction was in August, when a find a liquidation of assets that lease in at least five phone calls with Mohammad Javad Zarif, the By LOUISE STORY The 2.5 percent slide in the questions about global growth. small but surprising devaluation would have accounted for all the Iranian foreign minister. Senior market’s main benchmark, the The United States economy of China’s currency rattled in- money he spent on his campaign. Concerned about illicit money American officials described the Standard & Poor’s 500-stock in- has been showing some signs of vestors. What it does show, however, is flowing into luxury real estate, American-educated Mr. Zarif as dex, was the worst so far this Stocks rallied after the sum- that in the first half of 2012, Ted the Treasury Department said steady growth. But investors are clearly worried that the episode year, and came after two days of mer rout, as a recovery in Europe and Heidi Cruz obtained the low- Wednesday that it would begin concerned that problems in Chi- could sink the nuclear accord on slight gains that had suggested appeared to take hold and the interest loan from Goldman identifying and tracking secret na’s economy, and the stress that which he and President Hassan buyers of high-end properties. some confidence was returning creates for other countries, could Chinese currency steadied. As Continued on Page A18 the year closed, most Wall Street Rouhani have staked their lega- The initiative will start in two after a rocky start to the year. unleash forces that ultimately cies. of the nation’s major destinations The index is now in what Wall weigh on the United States. Continued on Page B4 Mr. Kerry, one of his top aides for global wealth: Manhattan and Cruz Woos Old Guard said, in essence told Mr. Zarif at Miami-Dade County. It will shine one point that “if we are able to a light on the darkest corner of Known as an anti-establish- ment agitator, Ted Cruz has be- do this in the right way, we can the real estate market: all-cash make this into what will be a purchases made by shell compa- gun courting some entrenched nies that often shield purchasers’ donors to Republicans. Page A18. Continued on Page A8 identities. It is the first time the federal government has required real es- tate companies to disclose names behind cash transactions, and it Cuomo Offers $20 Billion Plan is likely to send shudders through the real estate industry, To Ease State’s Housing Woes which has benefited enormously in recent years from a building boom increasingly dependent on wealthy, secretive buyers. By JESSE McKINLEY The initiative is part of a broad- and VIVIAN YEE er federal effort to increase the ALBANY — Proposing to ad- focus on money laundering in dress the challenges of homeless- real estate. Treasury and federal ness and a lack of affordable law enforcement officials said housing, Gov. Andrew M. Cuomo they were putting greater re- of New York delivered a State of sources into investigating luxury the State speech on Wednesday real estate sales that involve shell that called for a financial and companies like limited liability JENS SCHLUETER/GETTY IMAGES spiritual commitment to rebuild companies, often known as The far-right group Legida held an “anti-Islamization” march in Leipzig, Germany, on Monday. the state’s social and physical in- L.L.C.s; partnerships; and other frastructure. entities. Mr. Cuomo, in a broad and at MIKE GROLL/ASSOCIATED PRESS Future investigations, they times emotional vision of his 2016 Gov. Andrew M. Cuomo said, will focus increasingly on agenda, put forth a $20 billion professionals who assist in SexualAttacks WidenEurope’s Spliton Migrants plan to add 100,000 permanent money laundering, including real housing units over five years, and on the city to increase its contri- estate agents, lawyers, bankers gional government approved the described predatory gangs of thousands of additional units of bution to the City University of and L.L.C. formation agents. By JIM YARDLEY text of a law making it difficult to mostly foreign men, including housing that would offer shelter New York system and to Medic- some refugees, groping and rob- aid costs — further complicating Officials said the new govern- ROME — In Finland, militia construct new mosques as Mus- and social services across the a strained relationship with May- ment efforts were inspired in part groups are patrolling small towns lim refugees are settled in the bing young women. The Cologne state. In doing so, he vowed to ex- or Bill de Blasio, a fellow Demo- by a series last year in The New housing asylum seekers in the area. police are also investigating alle- ert his influence over problems crat. [Page A22.] York Times that examined the name of protecting white Finnish Across Europe, the migrant gations of rape. that have bedeviled New York rising use of shell companies as women. In Germany, far-right crisis that has engulfed the Conti- While the police say the as- City. Mr. Cuomo, who took the stage foreign buyers increasingly protesters rampaged through nent since the summer is provok- saults in Cologne were carried While the housing plan would in a convention hall adjacent to sought safe havens for their Leipzig on Monday, vandalizing ing new levels of public anxiety out by hundreds of men, even benefit the city, elements of Mr. the State Capitol, spoke as the money in the United States. The buildings in an “anti-Islamiza- after the New Year’s Eve sexual that is a narrow sliver of the Cuomo’s proposed budget, also former leaders of the State As- investigation found that real es- tion” demonstration. In Italy on assaults in Cologne, Germany, more than one million asylum released on Wednesday, would sembly and the State Senate, Continued on Page A20 Tuesday, an anti-immigration re- where witnesses and the police Continued on Page A10 have an opposite effect. He called Continued on Page A22

INTERNATIONAL A4-12 The Star-Struck Drug Baron Cellphone messages leaked to the Mexi- can news media show that Joaquín Guz- mán Loera, or El Chapo, was more in- terested in a Mexican actress than an interview with Sean Penn. PAGE A6

ARTS C1-7 NEW YORK A21-25 BUSINESS DAY B1-8 Chilean Architect Wins Prize An Ancient Titan Moves In Al Jazeera to End U.S. Channel Alejandro Aravena, who has focused on The American Museum of Natural His- low-cost social housing and was a de- The chief of the news channel, which de- tory plans to unveil the cast of a titano- buted in America in 2013, said it would signer of the Innovation Center in Santi- saur, a 122-foot-long dinosaur. PAGE A21 ago, above, has won architecture’s high- be shut down in April, succumbing to economic challenges. PAGE B1 est award, the Pritzker. PAGE C1 OBITUARIES B14-15 SPORTSTHURSDAY B9-14 NATIONAL A14-20 Editor of Shakespeare Books Giants Closing In on Coach Sylvan Barnet, the originator of the in- Both Parties Guilty of Vitriol The N.F.L. team was said to be close to expensive Signet Classic Shakespeare President Obama asked lawmakers to completing a multiyear contract that paperback series, was 89. PAGE B14 “fix our politics” with civility and com- would make its offensive coordinator, promise. Both parties share blame for Bob McAdoo, its new coach. PAGE B9 dysfunction. News Analysis. PAGE A16 EDITORIAL, OP-ED A26-27 Nicholas Kristof PAGE A27 Tough Job Opening in Chicago THURSDAY STYLES D1-8 Applications are due Friday for candi- Bowie’s Legacy on the Runway dates for police superintendent. The job David Bowie made the idea of constant involves unhappy workers, an angry reinvention a working fashion principle, U(D54G1D)y+"!%!&!=!] public and a troubled boss. PAGE A14 writes Vanessa Friedman. PAGE D4