Altogether, the couple put $1.2 million in “personal funds” into Cruz’s campaign-$960,000 before the May 2012 Republican primary and another couple hundred thousand before the scheduled runoff. All told, the value of their cash and securities in 2012 saw a net increase of as much as $400,000 – even as the Cruzes were supposedly liquidating everything to finance Mr. Cruz’s Senate campaign.
Advertisement
A New York Times report tonight says that Ted Cruz not only received a low-interest loan from Goldman Sachs–where Cruz’s wife works–for his 2012 Senate campaign, but he failed to disclose it.
Both loans had floating interest rates around 3 percent, according to Mr. Cruz’s Senate disclosures, which appear to be generally in line with rates available to wealthy borrowers at that time. Earlier Wednesday, the Cruz campaign called it an “issue of semantics”. “If it was the case that they were not filed exactly as the FEC requires, then we’ll amend the filings, but all of the information has been public and transparent for many years”. “Heidi and I when we ran for Senate, we made decision to put our liquid net worth into the campaign”. Personal financial disclosure forms later filed show loans in that period totaling hundreds of thousands of dollars and as much as an additional $1 million. But some of that money may have come from undisclosed loans from Goldman Sachs and Citibank, or at least helped the couple liquidate other assets to fund Cruz’s political career.
A staffer for Cruz’s campaign responded Wednesday evening to the Times report, mockingly calling the story a “bomb” and adding, “Cruz borrowed money and paid it back”. His wife is an investment banker and a vice president at Goldman Sachs. The article did not mention anything about loans from banks. One was a margin loan from Goldman Sachs. She did not, however, address the Citibank loan. The loans would grow to a maximum of $1 million before they began being paid down. Candidates must note sources of money they borrow for their campaigns.
Advertisement
“Bank loans to candidates and loans derived from advances on a candidate’s brokerage accounts, credit cards, home equity line of credit, or other lines of credit obtained for use in connection with his or her campaign must be reported by the committee”, according to the guide.
