Charisma Caucus

Expect This Problem for Ted Cruz to Come Up in Thursday's Debate

Ted Cruz
Ted Cruz has spent the hours leading up to Thursday night's debate answering questions about the manner in which his 2012 senate campaign was funded. (Reuters photo)

It's never been a secret that Ted Cruz' wife, Heidi, is a managing director for Goldman Sachs.

It was an irony the Texas senator has often had fun with while on the 2016 presidential campaign trail. But a new report published Thursday morning in the New York Times suggests there may have been more to that relationship than has been previously disclosed—at least to the Federal Election Commission.

According to the Times, Cruz said his wife gave her blessing to liquidate their family's assets to fund his 2012 run for U.S. Senate. The $1.2 million listed in FEC filings were all they had saved, according to a 2013 interview referenced in Thursday's report, but that's not entirely true:

"A review of personal financial disclosures that Mr. Cruz filed later with the Senate does not find a liquidation of assets that would have accounted for all the money he spent on his campaign. What it does show, however, is that in the first half of 2012, Ted and Heidi Cruz obtained the low-interest loan from Goldman Sachs, as well as another one from Citibank. The loans totaled as much as $750,000 and eventually increased to a maximum of $1 million before being paid down later that year. There is no explanation of their purpose."

The Times reported the loan was not disclosed to the FEC, but did confirm with Cruz spokeswoman Catherine Frazier the loan's existence. A line of credit through Citibank also was not disclosed, according to the report.

The Federal Election Campaign Act requires not only the loans be disclosed, but also the terms under which they were secured. The law requires the FEC determine that any loans are not overly favorable to a candidate, and that they were conducted in the course of normal business.

These disclosures are generally made on several forms, which are released publicly on a quarterly basis.

The lack of disclosure is not a major violation, and based on past precedent, usually doesn't result in any fines. Cruz responded directly to the issue Wednesday night, following a campaign stop in New Hampshire, saying it wasn't a personal loan, but rather a margin loan against his wife's brokerage account.

A "margin loan" is a type of financing backed by an investment portfolio, typically for the purpose of financing additional investments. The ability to borrow funds is determined by the assets in the portfolio, their loanable value, and a credit limit based on the borrower's financial position.

It is very likely the issue will come up during Thursday night's Republican presidential debate on FOX Business Network. It begins at 9 p.m. EST.

To contact us or to submit an article, click here.

Get Charisma's best content delivered right to your inbox! Never miss a big news story again. Click here to subscribe to the Charisma News newsletter.

Five ways to deepen your relationship with God, increase your faith and save money!

  • Deepen Your Relationship with God with a FREE eCourse: Click Here to view all of our free e-Courses. Favorite topics include Fear, Forgiveness, Holy Spirit, Supernatural, and How to Hear God.
  • Super Discounts and Close-Out Specials: Click Here to view all our bundles and close-out specials and save up to 86%! Prayer, Holy Spirit, Anointing, the Supernatural and more.
  • God Wants to Anoint Women Now: Rise up and enter the anointing of Deborah, Anna, Esther, Ruth and Hannah. You were called to go higher. Click Here to learn more.
  • Change Your Atmosphere and Circumstances Through Prayer! John Eckhardt's prayer bundle gives you six powerful books to help you pray and change any situation. Click Here.
  • HUGE Bible Sale!: Click Here to save up to 50% off a great selection of Bibles. Plus, get a free gift with each order!

Subscription Special: Subscribe to Charisma for Only $24.97 and get a free gift. With your subscription, you'll receive Born For Significance by best-selling author Bill Johnson. View Offer

Attention Pastors and Leaders: Leadership training and development are crucial for success. Enroll in a FREE 1-hour leadership mini-course by Dr. Mark Rutland. View Details

Charisma News - Informing believers with news from a Spirit-filled perspective