Republican presidential candidate Ted Cruz's 2012 run in Texas for a U.S. Senate seat was partially funded by a low-interest loan from Goldman Sachs, where his wife, Heidi Cruz, is employed, the New York Times reported Wednesday. The report said the loan was not disclosed in Cruz's campaign finance reports.
Instead, the campaign finance reports show that Cruz poured $960,000 of "personal funds" into his campaign before the May 2012 Republican primary. Two months later he contributed even more, bringing the total to $1.2 million. At the end of 2011, personal finance reports show that Cruz and his wife's assets totaled between $1.3 million and $3.4 million. His wife is an investment banker and a vice president at Goldman Sachs.
Cruz's personal finance disclosures do not appear to show any other means the senator would have had to make such considerable contributions. It does not show that he received low-interest loans from Citibank and Goldman Sachs that total $750,000, the newspaper's report said. The loan was "drawn against the value of the Cruzes’ brokerage account," according to the New York Times.
Cruz's campaign confirmed to the New York Times that the loan from Goldman Sachs was put toward his Senate run. Spokeswoman Catherine Frazier would not say if this was also true of the Citibank loan. She told the New York Times that the failure to report the loan in campaign finance reports was "inadvertent."
“These transactions have been reported in one way or another on his many public financial disclosures and the Senate campaign’s FEC filings,” she said, referring to the Federal Elections Commission.
Cruz's campaign reimbursed around half of the money he contributed to the race in 2012 — the same year that the Cruzes repaid the Citibank loan. However, the Goldman Sachs loan is still outstanding, and the balance is between $50,000 and $100,000, according to the New York Times.