Cruz Campaign: 2012 Disclosure Should Have Noted Goldman Sachs Loan

Jan 13, 2016

From the Texas Tribune: After a news article noted that Ted Cruz did not report a loan from his wife’s employer during his 2012 bid for U.S. Senate, Cruz’s presidential campaign acknowledged Wednesday evening that the loan should have been disclosed in campaign finance reports.

“We’re reaching out to the [Federal Election Commission] and asking them their recommendation on anything we need to do to update or amend that report,” said Catherine Frazier, a spokeswoman for Cruz.

The New York Times reported Wednesday that a loan from Goldman Sachs was not disclosed in campaign finance reports during Cruz’s successful 2012 campaign. Heidi Cruz, Ted Cruz's wife, is currently on leave from her job as a managing director at Goldman Sachs.

According to the Times report, Cruz put $1.2 million in “personal funds” into his campaign. A Times review of the Cruz’s personal finance disclosures found that in the first half of 2012, the Cruzes received low-interest loans from Goldman Sachs and Citibank. The loans would grow to a maximum of $1 million before they began being paid down.

Neither loan appears in reports that Cruz’s campaign committee filed with the Federal Election Commission. Candidates must note sources of money they borrow for their campaigns.

“Cruz wrote a personal check to his campaign for $1.4 million. Those funds came from a combination of his personal savings, selling some stock and taking a loan out against his assets. Because he took a loan out against his assets, that detail should’ve been in the FEC form,” Frazier said.

Cruz defeated then-Lt. Gov. David Dewhurst in a 2012 GOP primary runoff before handily winning the Senate seat in the general election.