Wall Street Dems Could Jump Ship
(UnitedVoice.com) – Wall Street Democratic donors, big businesses, and investors are worried about what an Elizabeth Warren (D-MA) presidency would mean for the country. Some are openly stating they will sit out the presidential campaign fundraising cycle or support Donald Trump for re-election if Warren wins the DNC nomination.
In a scathing article on Friday, Mother Jones reported that Barclays, a London-based bank and financial services firm, sent out five reports titled “#DemNominations2020” to their clients at the end of 2019. The reports laid out the repercussions a Warren presidency would have on the economy.
Barclay’s concerns about Warren’s policies and how they could negatively impact corporate earnings, the economy, jobs, and economic growth include:
- A detailed evaluation of how much Warren can enact without Congress through executive authority.
- Disruption of global supply chains due to a nine-point eligibility test for international trading partners.
- How a 2% tax on personal wealth over $50 million “would likely crimp investment in the economy.”
- Canceling student loan debt for 95% of borrowers and the consequences on the loan industry.
- The banning of fracking that would hurt US energy companies when fracking is the main reason the United States has become energy independent.
- The breaking up of big tech companies such as Google, Amazon, and Facebook.
- Appointing regulators that would impose stiffer penalties for corporations who break the law.
Warren’s Intent to Bypass Congress
The presidency comes with significant power and Warren has expressed sincere interest in unilaterally using that power to sidestep Congress. This has Wall Street deeply concerned about how Warren might use regulatory agencies and other departments to enact her liberal agenda without congressional approval.
Since Congress was first created, it has enacted more than 40,000 laws and most are still in place. Regulators can and do use many of these laws, even if outdated, to enact their regulatory agendas as policies directed by the president.
In one of the reports, Barclay’s stated, “Senator Warren could advance her agenda by empowering or constraining the actions of regulatory agencies and departments.”
Warren has said she doesn’t need Congress to:
- Cancel student debt, it can be done “with the stroke of a pen”
- End oil and gas leases on federal lands
- Change international trade policy
The report further stated, “Given Senator Elizabeth Warren’s (D-MA) policies that she asserts are ‘big structural’ change and ‘economic patriotism,’ her quantifiably more liberal voting record, and her steady rise in the polls and betting markets, investors and corporates across asset classes and geographies have taken note and posed questions.”
Democratic Donors May Sit Out 2020 Campaign
In September 2019, CNBC reported that numerous Wall Street donors were prepared to sit out the election or vote for Donald Trump if Warren wins the presidential nomination.
Warren is an outspoken critic of Wall Street, banks, and big business.
CNBC reported, “You’re in a box because you’re a Democrat and you’re thinking, ‘I want to help the party, but she’s going to hurt me, so I’m going to help President Trump,’” said a senior private equity executive, who spoke on condition of anonymity in fear of retribution by party leaders.
Warren has vowed not to take campaign donations from special interest groups and doesn’t seem to be concerned about Wall Streets’ threats. For her part, Warren tweeted;
I'm fighting for an economy and a government that works for all of us, not just the wealthy and well-connected. I'm not afraid of anonymous quotes, and wealthy donors don't get to buy this process. I won't back down from fighting for the big, structural change we need. https://t.co/nx7GczQhHl
— Elizabeth Warren (@ewarren) September 26, 2019
Warren’s focus on “big, structural” changes is exactly what has Wall Street worried.
By Don Purdum, Freelance Contributor
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