Daily Management Review

Scared by Trump, Wall Street bankrolls Clinton


On the eve of the final battle with Donald Trump, former US Secretary of State Hillary Clinton receives from Wall Street donors more transfers than all other candidates combined.

Gage Skidmore
Gage Skidmore
In total, Clinton received $ 4.2 million from Wall Street, $ 344 thousand of which came in March.

According to Wall Street Journal’s analysis, based on nonpartisan Center for Responsive Politics’s data, share of Wall Street’s donor transfers to Clinton’s campaign in March amounted to 53% compared to 32% last year and 33% in January-February.

Analysis of the election campaigns’ financial statements shows that once Republicans Jeb Bush and Marco Rubio dropped out of the presidential race, some Wall Street donors decided to finance Clinton’s campaign.

Trump's campaign, by contrast, has received no more than 1% of Wall Street companies’ donations.

So far, Trump apparently had no need to aggressively seek money for his campaign from various investors. He financed three-quarters of his campaign from his own funds. Last week, however, he claimed that he plans to actively attract donations from investors to "keep up with Mrs. Clinton."

Already, some Wall Street donors said they plan to support him. Among those expressed such an intention are billionaire Ken Langone and founder of a hedge fund Anthony Scaramucci.

Last week, Trump also said that a former employee of Goldman Sachs Steven Mnuchin, who is now CEO of Dune Capital Management hedge fund, is now ready to become one of his campaign’s donors.

Yet, Clinton's ability to attract the support of business donors suggests that she was able to recover a significant flow of funds from Wall Street, since the big banks, investment companies and hedge funds have fallen out of US President Barack Obama’s favor.

In the presidential elections of 2012, the financial services sector donated more than any other industry: the total amount of donations then was $ 90 million.

Responsibility for Clinton’s popularity of on Wall Street may be imposed on a number of liberal voters, given that her main competitor Bernie Sanders accused Clinton in too close contact with the financial sector. But, having won back a significant amount of funds used to finance Romney’s campaign four years ago, Clinton is likely to get a great advantage in terms of raising funds for her campaign during elections. 
It is known that Clinton’s campaign in April received a total of $ 213 million. Meanwhile, $ 49 million for Trump’s campaign were allocated in March, $ 36 million of which came from his personal funds.

Analysis of Crowdpac showed that more than 500 donors, many of them from Wall Street, have donated more than $ 200 thousand. Republicans later descended from the race, including Bush and Rubio, and since then the Clinton campaign started to get financed. More than a third of the funds allocated to carry out the campaign went to Clinton’s private disposal.

Advisor with the Securities and Exchange Commission USA Andrew Weinstein said that the companies "hate uncertainty around tax, regulatory and trade policies" and therefore prefer to stay away from Trump.

"As a rule, business interests are difficult to keep running on one only idea that Trump would maintain loyalty to business candidates. They just do not know much about Trump. They are familiar with Hillary Clinton, and they know that she is not opposed to business," - said GOP lobbyist Ed Rogers.

A former employee of Merrill Lynch Mario Paredes throughout his professional activities had been a Republican candidates’ donor. Last year, he stopped his long-term contributions to a presidential candidate, former mayor of New York, George Pataki. As Trump started to position himself as the main candidate of the Republican Party, Paredes changed his course and donated maximum amount for Clinton’s campaign.

"I changed my mind, because I cannot accept some of Trump’s statements, especially those that are related to the Latin America theme", - said Paredes.

Even some donors who had previously supported Trump changed their opinion since then.

Ralph Herzka, CEO and founder of investment consulting firm Meridian Capital Partners, is included into a couple hundred of donors who have donated the maximum amount of funds for Trump’s campaign. June last year, they gave $ 2700. This year’s sum was two times higher: $ 2,700 for the primaries in January, and another $ 2700 for the main elections. Herzka declined to comment on the situation.

Businessmen’s financial assistance for Clinton’s campaign comes at a time when other major donors prefer to remain neutral.

Earlier this year, some of the largest donors to the Republican Party spent millions on a campaign against Trump. Group of major donors from Wall Street, including the owner of Elliott Management hedge fund, Paul Singer, contributed $ 16 million in March. Family of Joe Ricketts, Ameritrade company’s founder, contributed $ 5.5 million at the end of March.

source: wsj.com

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