Wall St donors reportedly withhold Dem donations from Schumer, fearful of Warren nomination

Sen. Elizabeth Warren’s rise in the 2020 presidential race may actually be hurting Democrats who are running for Senate.

The Massachusetts lawmaker and her socialistic economic policy proposals are reportedly giving Wall Street donors some concern, which is playing out in their reluctance to donate to Democratic Senate candidates, according to CNBC.

(Image: Wikimedia)

Senate Minority Leader Chuck Schumer has reportedly been informed by several finance executives that they are holding off in their donations over worries that Warren, who has repeatedly targeted Wall Street, will surge ahead in the race to secure the party’s presidential nomination.

The move is apparently intended to send a message to Schumer who, as a senator representing New York, has been the recipient of “millions of dollars in donations from Wall Street,” CNBC reported.  And the potential of a Warren presidency has some donors feeling that a Republican-controlled Senate would be preferable to helping Democrats reclaim the majority.

According to CNBC:

These financiers, which include hedge fund managers and private equity executives, are also worried that Warren’s policies, were she to defeat President Donald Trump, could be detrimental to their businesses. They believe Republicans could keep her potential administration in check if the GOP holds onto or expands its Senate majority. Republicans have a 53-47 majority in the Senate; Democrats need to flip a net of four seats to take control.

 

“They feel, rightly or wrongly, attacked. Not just that there will be higher taxes, but that she is running her entire campaign as them being boogeymen,” a political advisor said. “They don’t feel safe going to Trump, they feel disillusioned by Biden and they see this as a tactic to slow her down. They see it as a way to put pressure on the party as a whole to move away from Warren.”

The unnamed source also noted that the strategy appears to confirm Warren’s criticism about the wealthy donors having a significant impact on politics.

According to The New York Times:

Business executives are also donating to Ms. Warren’s more moderate challengers, hoping to boost candidates with less transformative visions for revamping the economy.

Of the roughly 1,400 biggest donors to Hillary Clinton’s 2016 campaign, just under 2 percent have so far given the maximum contribution to Ms. Warren, according to a New York Times analysis. That’s a far lower percentage than those who gave to rivals like Mr. Biden.

 

Warren has repeatedly attacked the Wall Street companies and has used the tagline: “Stop Wall Street Looting” in her campaign.

Frustrated Democrats on Wall Street are fighting back, however, and are putting pressure on Schumer and other lawmakers, especially in light of former Vice President Joe Biden’s dwindling lead over Warren and his other rivals.

Warren’s latest release of information on how she plans to fund her “Medicare for all” program showed that Wall Street would be hit hard with new taxes on the wealthy and more taxes on stock trades.

“Everyone is nervous,” Steven Rattner, a Democratic donor who manages funds for former New York City mayor Michael Bloomberg, told The New York Times. “What scares the hell out of me is the way she would fundamentally change our free-enterprise system.”

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Frieda Powers

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