For the first time in a decade, Wall Street has donated more money to Democrats than Republicans, in an apparent bet on the future outcome of the upcoming midterm elections.
According to data from the Center for Responsive Politics, bankers have joined the securities and investment industries to give more than $56.8 million to Democratic congressional candidates, outweighing the $33.4 million given to Republicans this election cycle. On a whole, Wall Street-based firms and asset managers have financially backed Democrats over Republicans 52% to 46%.
Bloomberg notes that the majority of these donations have been made to moderate Democrats, in an apparent effort to push the needle away from the more progressive end of the party. This is likely a move to lessen the potential for a significant regulatory overhaul, which would likely come from progressives like Senator Elizabeth Warren.
“Wall Street’s investment in the Democratic majority pales in comparison to what everyday people, small donors have been giving. Any Democrat that reads the election results and interprets that as voters wanting to give Wall Street favors needs to go back to night school,” said Karl Frisch, executive director of advocacy group Allied Progress.
And the data appears to support Frisch’s assertion. According to the Washington Post, Democratic candidates for Congress have already raised a record-breaking amount this election cycle, with $205 million coming from donations under $200 — more than three times the amount raised by Republicans. However, a recent report from The Intercept shows that most current members of the Congressional Progressive Caucus still receive far more money from corporate donors than individuals.
A significant portion of Trump’s platform is currently based on the ongoing economic boom, as he commonly cites the performance of the Dow as an indicator of his policies. However, after a tumultuous month of trading, which was even more volatile than the digital asset market, the Dow is currently flat on the year at 25,115.
How the recent market decline will affect the upcoming elections is yet to be determined, but it’s clear that Wall Street is fully hedged going into November 6.