If sources are to be believed, Ted Cruz may soon find himself in a soup.
It has been reported that he decided not to entirely disclose how he had funded his first campaign for the United States Senate four years ago.
With the American presidential candidates gearing up to fight for victory, even a small gaffe could have serious repercussions.
Cruz had earlier portrayed his Senate race as a great selflessness struggle. An act of dedication on part of him and his wife, as they used all their available financial resources to fund the campaign.
Back then it was assumed that the $1.2 million which was pumped into the campaign for the May 2012 Republican primary, was drawn from the couple’s personal savings.
However, it has now emerged that this could have been a colourfully-painted white lie, as Ted Cruz’s campaign was also funded by a large loan from the bank that Mrs Cruz works for – Goldman Sachs, along with another supplementary amount from Citibank.
They initially amounted to $750,000 and later extended to a maximum of $1 million. They were later paid off.
These loans were not initially revealed in campaign finance reports, which is intriguing indeed.
Neither was it disclosed in reports the Ted Cruz for Senate Committee filed with the Federal Election Commission, where candidates are supposed to state where they borrowed money from, to fund their campaigns.
It first came to light when a Mr Cruz later filed a review of his personal financial disclosures, where it was found that there was no liquidation of assets that could account for the enormous amount of funding.
However, spokeswoman for Cruz’ presidential campaign – Catherine Frazier, claims that this omission was not purposefully done, and the financial reports would be updated with this information soon.
The revelations come at an inopportune time for Cruz. With Iowa, where he leads in the polls ahead of Mr Trump, only weeks away, Cruz will have to fight back against attacks that could now come from a completely new direction. The senator is used to picking fights with the republican party establishment.
Now he will have to make sure that his image is not damaged with the conservative base, that has so far celebrated him as an outsider. A loan from Goldman Sachs, an institution that personifies the establishment like few others, and an undisclosed one at that, goes counter to everything Cruz stands for.
Accordingly to legal requisites, it is completely alright for Ted Cruz to borrow from banks in order to fund his campaign, as long as this information is disclosed properly. However, Cruz probably decided against it because of his political agenda. Cruz has been a fierce opponent of Wall Street bailouts and disapproves the undue power that big banks wield in Washington.
If Cruz had declared the truth about his loans, this could dent his political arguments, making him look like a hypocrite – since he was funding his campaign with help from the very same banks whose privileges he opposed. In fact, he even struck down Goldman Sachs’ excessive political influence, and said earlier this year, “Like many other players on Wall Street and big business, they (Goldman) seek out and get special favors from government.”
Isn’t it ironic that Ted Cruz sought a loan from the very same bank he claimed to look down upon, for their unwarranted involvement in politics?
Now that the truth about Cruz’s 2012 campaign funding is out, it could present him with some problems.
At a time when the candidates are wading through cutthroat competition, this revelation may even affect Cruz’s 2016 presidential bid. It remains to be seen if especially Iowa voters, how place great importance on personal intergrity, will lose their trust in the credibility of Ted Cruz as an honest leader.
As the old saying goes, the truth can never hide, and Ted Cruz has now learnt this the hard way.