When it comes to politics, one mistake it’s all it takes to screw things up. And Ted Cruz may be in serious trouble. The Texas Senator didn’t disclose to election officials a pair of loans he took from two banks when he ran for the Senate in 2012, therefore violating federal election rules, says CNN.
$500,000 were borrowed by the Senator
Two personal loans from Citibank and Goldman Sachs could destroy Ted Cruz’s changes to win the GOP nomination, after Cruz did not report them to the Federal Election Commission, He took them in 2012, when he was running for the Senate, and It looks like the sum lent by Ted Cruz is somewhere between $500,001 and $1 million, says The Wall Street Journal. His wife, Heidi, worked for Goldman Sachs in that period, but nothing indicates that she was involved in the loan, confirms the same source.
Following New York Times’ mistake revelation, Ted Cruz moved quickly and listed the loans on personal financial disclosures. “These loans have been disclosed over and over and over again. It is an inadvertent filing question. The facts of the underlying matter have been disclosed for many, many years”, said Ted Cruz, according to CNN. Catherine Frazier, Cruz’s campaign spokesman, gave more details on Wednesday.
Ted Cruz’s campaign acknowledged the mistake
She claimed that the couple’s loans were borrowed against their own money and they are currently paying on them. Frazier also added that the Texas Senator has nothing to hide and he will cooperate with the Federal Election Commission. “Now we realize that we should have disclosed it, yes. It’s a matter of semantics in terms of listing that that was a loan and we’re asking the FEC what we need to do to update it, if anything.”, Ted Cruz’s campaign spokesman told reporters in South Carolina.
CNN’s Dana Bash asked the GOP candidate how he’s adjusting his image with the large loan from Goldman Sachs, and Cruz responded that the Senate run pulled out a large sum of the family’s fortune. “The premise of your question is not right. Heidi and I when we ran for Senate, we made decision to put our liquid net worth into the campaign.”, stated Cruz.
The Senator had a way richer opponent in 2012
In Cruz’s defense, he had to duel in 2012 with Lt. Gov. David Dewhurst, the overwhelming favorite in the crucial Senate Republican primary who invested $25 million of his own money, according to CNN. But Federal Election Commission rules say that all candidates must disclosure all sources of funds for their campaigns.
Cruz told the Commission about the money, nearly $1 million in personal funds, however he “forgot” to specify that the source of that money may have been the loans he received from Citigroup and Goldman Sachs, says The Wall Street Journal. The same source tells us that Ted Cruz’s financial statements for 2012 show that he paid off both the loans from Goldman Sachs and Citigroup by the end of that year.