Ted Cruz Financed 2012 Senate Campaign With Loans from Goldman Sachs, Citibank

Ted Cruz speaks during a campaign rally at The Gatherings on Wednesday in Dorchester, S.C.
Ted Cruz speaks during a campaign rally at The Gatherings on Wednesday in Dorchester, S.C.

Ted Cruz’s defiant self-description as a populist willing to put his personal financial security on the line to win elected office is under fire amid disclosures that the Texas Republican senator financed his anti-establishment 2012 Senate campaign in the most establishment of ways: by getting a big loan from Goldman Sachs.

Cruz’s Federal Election Commission filings show that he and his wife, Heidi, dumped a total of $1.2 million of their own money into his upstart, ultimately successful, bid for the Senate, which has provided the tea party darling a platform for his current presidential campaign. But personal financial disclosures show that the Cruzes took out loans from both Goldman Sachs, where Mrs. Cruz is managing director, and Citibank, the New York Times reported.

The loans, which the Times said have been paid down, totaled about $1 million, suggesting that the financial risk Cruz then crowed to the Times he was taking was not so personal, after all. “Sweetheart, I’d like us to liquidate our entire net worth, liquid net worth, and put it into the campaign,” the Times reported that Cruz told his amenable wife. But Cruz did not then mention the bank loans.

Candidates are required to report to the FEC any loans taken out to finance their federal campaigns, and must continue to report outstanding debt even after the initial disclosure of the loan. Cruz did not do so, but called the discrepancy “inadvertent.”

“The facts of the underlying matter have been disclosed for many, many years,” the candidate told reporters in South Carolina, where the GOP candidates will be debating Thursday night. “All of the information has been public and transparent for many years, and that’s the end of that… Those facts are clear and transparent and a technical, inadvertent filing error does not change that at all.”

But Larry Noble, general counsel at the nonpartisan Campaign Legal Center, said the failure to report the loans is illegal, and not subject to interpretation. 

U.S. News & World Report