Wall Street executives are throwing their money behind Democratic presidential nominee Joe Biden, with the expectation that he will continue his pro-corporate policies despite his socialist talking points, Fox Business reported.
Big banks and corporations support Biden because he is leading in the polls, and they want a seat at the table to discuss regulations with the next occupant of the White House.
“Wall Street always likes to back the winner,” said Charles Myers, chairman of Signum Global Advisors. “If the polls are wrong, some of the smartest people in the country will have gotten their bet completely wrong for the second time in eight years.”
In addition to betting heavily on failed Democratic presidential nominee Hillary Clinton in 2016, the financial industry also gambled on failed Republican presidential nominee Mitt Romney routing incumbent Barack Obama in 2012.
Wall Street donated $61 million to Romney, compared to $18.7 million for Obama; and $88 million to Clinton, compared to $20.8 million for Trump.
But the real reason that Wall Street backs Biden is that his working-man affectation is a campaign shtick that does not match his 47 years in office fighting for corporate bailouts and carve outs.
Campaign-finance data show that Biden has accepted about $51 million from companies that manage investments and securities, whereas President Donald Trump has taken a mere $10 million, Open Secrets reported.
Individuals at Wall Street banks support Biden, too.
Goldman Sachs executives and employees have contributed $172,809 to Biden’s campaign but only $11,943 to Trump’s campaign.
The money that individuals at Goldman Sachs donated to Trump about matches the amount that they gave to a pro-corporate Democrat who challenged Alexandria Ocasio–Cortez in the primary. The challenger, CNBC anchor Michelle Caruso–Cabrera, lost by 73 percent.
Former Goldman Sachs CEO Lloyd Blankfein in a tweet said that Biden’s high-tax, red-tape regime would do less damage to the market than Trump’s rhetoric.
So far the stock market doesn’t seem too upset at the prospect of Biden winning, despite Trump’s more market friendly policies. Perhaps folks think their stocks and 401(k)s will do better with higher taxes and increased regulation than with nastiness and scorched earth.
— Lloyd Blankfein (@lloydblankfein) September 30, 2020
But top executives who spoke anonymously to Fox Business said they believe that Biden’s campaign promises, which he adopted to appease the Sanders–AOC wing of the Democratic Party, are empty talk.
“They just think Biden is calling for all these tax increases to appease the progressives like Bernie Sanders and AOC,” an executive who has spoken with the Wall Street executives who have donated to Biden.
Biden will govern like an establishment globalist if elected, not a populist progressive, according to the anonymous source.
Even though Trump was in real estate for his entire life before running for president in 2016, real estate investors support Biden by a smaller margin, $20 million compared to $16.7 million.
“The real estate guys are like the Wall Street guys,” the anonymous corporate executive said. “They see Biden winning and they don’t think he will carry through with all his tax increases. I think they’re crazy, but that’s what they’re saying.”
