Republican presidential candidate Ted Cruz (R-TX) secretly obtained a loan from the big pockets of financial giant Goldman Sachs, which he used to provide a decisive financial edge to his U.S. Senate campaign in 2012.
Cruz has previously accused Goldman of being the beneficiary of “crony capitalism,” and said they “they seek out and get special favors from government.”
The loans obtained by Cruz were not disclosed on forms filed with the federal government.
Neither loan appears in reports the Ted Cruz for Senate Committee filed with the Federal Election Commission, in which candidates are required to disclose the source of money they borrow to finance their campaigns. Other campaigns have been investigated and fined for failing to make such disclosures, which are intended to inform voters and prevent candidates from receiving special treatment from lenders. There is no evidence that the Cruzes got a break on their loans.
A spokeswoman for Mr. Cruz’s presidential campaign, Catherine Frazier, acknowledged that the loan from Goldman Sachs, drawn against the value of the Cruzes’ brokerage account, was a source of money for the Senate race. Ms. Frazier added that Mr. Cruz also sold stocks and liquidated savings, but she did not address whether the Citibank loan was used.
Cruz is now characterizing the omission of this information as “inadvertent” and a “technical” matter. He went on to say “The facts of the underlying matter have been disclosed for many, many years.” He also told reporters, “All of the information has been public and transparent for many years, and that’s the end of that.”
But the election was over in the fall of 2010, and it is now 2016 – a six year gap between when he spent the money and when he finally acknowledged where it came from and how it was used. Cruz failed to amend or update this information for a large sum of money. Considering the candidate’s history of playing fast and loose with the truth, there is no independent verification of his claim that the filing was “inadvertent.”
Cruz’s wife Heidi is a managing director at Goldman Sachs in Houston, but is currently on a leave of absence from her job as her husband campaigns for president. When speaking about his wife’s career, Cruz omitted the ten years of experience she had at the company.
Featured image via Flickr