Lisa Simpson
Mar 11,2010
In: Finance

What are the chances of Wall Street Making Better gains by Investing with the Republicans?

There many chances of wall street making gains by investing with the republicans.

Wall Street is far from happy with the political speeches pouring out of Washington. It is now making use of the right granted to it by the Supreme Court ruling while talking about money. It is going to shift more of the dollars towards the Republicans. But this poses the gains of what are the chances of Wall Street making better gains by investing with Republicans? Ultimately it might not pay off. One swallow does not mean the weather has changed and as yet it seems that the chances are slim of the Republicans coming back to power.

The most recent data is suggesting that Wall Street is continuing to bet on the Democrats but not as heavily as previously. According to The Washington Post the latest figures from Center for Responsive Politics show that previously the spending was 2:1 on Democrats. But the securities and investment group is now dividing its contributions equally between the candidates of the two parties.

The commercial banking group has always been pro-Republican and continues to remain so – comments the Washington Post. It reported that “after a brief dalliance with Democrats” the commercial banking group has given double that amount to the Republicans during the last quarter of 2009.

Why is Wall Street worried about the Democrats? The financial industry definitely dislikes steps being taken to regulate it and limit its bonus packages. But the final straw was when a proposal came forth of imposing a TARP related tax on financial entities. This was followed up later by Obama declaring that he would like to limit the size of the mega banks. An anonymous banker was quoted in The Washington Post for saying “I’m not voting for him again.”

But for the Wall Street group would the Republicans be an improvement? The conservative candidates are also endeavouring to win the favour of the voters who are furious about the bailouts and deficits in the budget. The budgetary problem has largely been because of the bailouts. The tone of the language may be the same but the essence is the same. On the other hand the Democrats are trying to be on both sides of the Wall Street fence.

Obama’s reference to the bonuses of the Wall Street banks on the one hand attracts public sympathy while on the other it is empathetic towards the plight of the bankers. Obama described the bonuses as “shameful” and “obscene” and yet he is assuring the executives that he does not “begrudge people success or wealth.”