Ted Cruz and his wife took out a loan from Goldman Sachs, and another from Citibank, without the required disclosure to the Federal Election Commission, NYT is reporting.
Cruz used the loans to help finance his 2012 Senate campaign.
As Ted Cruz tells it, the story of how he financed his upstart campaign for the United States Senate four years ago is an endearing example of loyalty and shared sacrifice between a married couple.Tim Mak at The Daily Beast+-adds:
“Sweetheart, I’d like us to liquidate our entire net worth, liquid net worth, and put it into the campaign,” he says he told his wife, Heidi, who readily agreed.
But the couple’s decision to pump more than $1 million into Mr. Cruz’s successful Tea Party-darling Senate bid in Texas was made easier by a large loan from Goldman Sachs, where Mrs. Cruz works. That loan was not disclosed in campaign finance reports.
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.
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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.
It’s not the only benefit he has accrued from Goldman Sachs: he was covered under the company’s health insurance plan when his wife worked at the bank as a VP. The coverage only expired last year when she decided to take a leave of absence from the organization to help with his presidential campaign...All of this makes his public stances on Goldman Sachs appear even more hypocritical. He has called out the bank as being one of the worst examples of the noxious nexus between Wall Street and Washington.-RW