Home / US / Wall Street avoids Trump. Campaign donations to Biden are five times as high

Wall Street avoids Trump. Campaign donations to Biden are five times as high

The securities and investment industry donated just $ 10.5 million to Trump’s presidential campaign and outside groups that took action, according to a new balance sheet from OpenSecrets. It sent almost five times as much cash ($ 51.1 million) to Democratic presidential candidate Joe Biden.

That means Trump is losing the Wall Streeters fundraising race a little more than in 2016. During that cycle, former New York Senator Hillary Clinton and her groups raised $ 88 million from the securities and investment industry, while Trump only took 20 $ 8 million.

In some ways, Wall Street’s preference for Democrats makes sense over the last two presidential cycles. After all, many people who work in the industry live in deep blue cities like New York City, Boston, Chicago, and San Francisco.

“The bigger problem is where you live and where you work. It̵

7;s that simple,” said Ed Mills, policy analyst at Raymond James.

In 2008, the securities industry donated $ 19 million to Barack Obama’s campaign, doubling the $ 10.4 million raised by Republican Senator John McCain, according to OpenSecrets.

Blue Wave fears on Wall Street

And yet the fact that Trump has been so much overtaken – by a bigger lead than Republicans in 2008 or 2016 – is surprising, given analysts warn that his opponent could be a nightmare for Wall Street.

Note that S&P Global Market Intelligence recently estimated that Biden’s plan to raise the corporate tax rate could cause the profits of America’s ten largest banks to fall by a total of $ 7 billion each year.

Boutique investment bank Keefe, Bruyette & Woods (KBW) told customers on Friday that the best scenario for large bank stocks would be a Trump win with continued GOP scrutiny by the U.S. Senate. This would signal a continuation of light regulation and low taxes.

Worst-case scenario, according to the bank: a blue wave that puts Democrats in control of the White House and the US Senate, paving the way for higher corporate taxes, tax hikes for wealthy and tighter regulation of banks.

KBW is so concerned about a blue wave that it is incredibly worse for big banks than a controversial choice causing severe market turmoil.

Let that take effect for a moment.

But all major banks support Biden

However, a CNN Business analysis of the OpenSecrets study shows that Biden beats Trump at fundraising from all the major American banks – in some cases by a large margin.

For example, Biden has raised $ 156,584 from individuals at Goldman Sachs (GS)according to OpenSecrets. With just $ 11,943 in contributions, Trump ranks an astonishing 45th place among the recipients of the federal campaign – well behind House Speaker Nancy Pelosi, US Senator Lindsey Graham, Graham’s opponent Jaime Harrison, and Andrew Yang, a CNN political commentator who has called for a universal basic income.

But it’s not just Goldman Sachs whose staff have supported the Democrats in the past. (Former Goldman Sachs CEO Jon Corzine later became the Democratic governor and U.S. Senator from New Jersey.)

Investors fear that the US elections will only be decided after weeks or months
At the Citigroup (C.)Trump was taken by surprise by Biden as well as Pete Buttigieg, Bernie Sanders, Yang, the vice-presidential candidate Kamala Harris and the US Senator Doug Jones.
Trump raised just $ 86,083 of JPMorgan Chase (JPM), the largest US bank. At $ 379,057, Biden has raised three times as much as Trump from JPMorgan. Trump was also behind Buttigieg and Sanders at JPMorgan.
Biden has raised more than double ($ 257,821) of Morgan Stanley (MS) like Trump ($ 96,010) according to OpenSecrets.
The two candidates are closer to some other big banks. At the Wells Fargo (WFC)Biden has raised $ 267,000 compared to $ 194,000 from Trump. Sanders, who ended his campaign in April, is just behind Trump at $ 189,000.

Biden has raised $ 275,200 at Bank of America, compared to $ 164,911 at Trump.

Biden was seen as an ally of credit card companies

Compare that situation to 2012, when Wall Street sent $ 63.9 million to Mitt Romney, the GOP presidential candidate and former private equity manager, according to OpenSecrets. Obama raised only $ 19.4 million from industry during this cycle.

Sheila Krumholz, executive director of the Center for Responsive Politics, which runs OpenSecrets, said Wall Street could have some level of convenience with Biden. In addition to serving as Vice President for eight years, Biden represented Delaware, a state that is home to large credit card companies, for decades.

“Biden has been seen as a close friend of major credit card companies for many years. He certainly does not run from the left wing of the party,” said Krumholz.

In other words, if Sanders or Senator Elizabeth Warren were the Democratic nominee, the donation amounts could be very different.

Stocks do better with a Democrat in the White House.  History proves it

It’s not just Wall Street berating Trump. The broader sector, which includes finance, insurance, and real estate, is also heavily blue, sending $ 86.7 million to Biden and outside groups that support the Democrat. In contrast, Trump only received $ 50.4 million from the financial sector.

Trump is even just behind Biden when it comes to fundraising from real estate, the industry he’s made a name for himself on the national stage. Biden and affiliated outside groups raised $ 19.8 million from real estate, compared to $ 16.7 million for Trump.

The donation totals suggest that many finance professionals have chosen to live with a Biden presidency, even if that could translate into lower paychecks.

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