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Wall Street Warms Up to Democratic Candidates

November 2, 2018

The financial services industry is increasingly giving money to Democratic candidates, spurred on by anti-Donald Trump sentiment combined with a desire to curry favor in Washington, Bloomberg writes.

Leading up the Nov. 6 midterm elections, members of the securities and investment industry — which includes individuals, corporations and political action committees — have sent $56.8 million to Democratic congressional candidates and $33.4 million to Republican candidates, according to the news service, which cites data by the Center for Responsive Politics.

It’s the first time in 10 years the industry, which includes asset managers, private equity firms and other investment companies, gave more money to Democrats than to Republicans, Bloomberg reports.

Bankers, meanwhile, gave $8.5 million to Democrats and $13.5 million to Republicans, according to the Center for Responsive Politics, the news service writes.

The financial services industry is particularly attracted to moderates among Democrats such as Representatives Josh Gottheimer of New Jersey, David Scott of Georgia and Jim Himes of Connecticut — who is a former banker with Goldman Sachs, Bloomberg writes.

But giving to Democrats is also a calculation to “temper the impact” of such Democrats as Rep. Maxine Waters, D-Calif., and Sen. Elizabeth Warren, D-Mass., both of whom are viewed as particularly tough on the industry, according to the news service.

If the Democrats take over the house, Waters would lead its financial services committee, the news service writes. Waters is also likely to press for more investigation of Wells Fargo, Bloomberg writes.

Democrats are apparently likely to take over the House of Representatives while Republicans are apparently expected to keep a majority in the Senate, polls say, according to the news service.

By Alex Padalka
  • To read the Bloomberg article cited in this story, click here.