Banks back Democrats in bid to rebuild bipartisan support

Politics 23:29 06.10.2018

Banks are going to bat for Democrats in the U.S. November midterm congressional elections as part of an ambitious strategy to rebuild the bipartisan support they enjoyed before the 2007-2009 financial crisis.

Commercial banks have so far donated a total of $2.5 million to U.S. Senate Democrats in the 2018 election cycle, the largest sum since 2008, according to data from the Center for Responsive Politics.

The backing of Democrats marks a shift for banks, which have kept a low profile in Washington since the crisis. Democrats had all but abandoned the financial industry in the aftermath, wary of appearing to do favors for Wall Street.

But some moderate Senate Democrats in May backed the first easing of financial rules since the crisis and now are seeing a boost to their campaign coffers as the sector seeks to broaden its support on Capitol Hill.

Of the 20 Senate candidates receiving the most money from banks during the 2018 cycle, 15 are Democrats, according to the Center for Responsive Politics data which tracks donations made by political action committees and individuals. When those seats were last up for election in 2012, only seven Democrats were in the top 20.

Senators Heidi Heitkamp, Jon Tester and Joe Donnelly, moderates who helped pushed through the May legislation easing rules on community banks introduced by the 2010 Dodd Frank law, are the top three recipients, the data shows.

Representatives for Senators Tester, Heitkamp and Donnelly did not respond to requests for comment.

All three senators are locked in tight contests on Nov. 6. Analysts predict Democrats are likely to gain control of the House of Representatives but have a more narrow path to taking back the Senate.

The other 12 Senate Democrats, some of whom also voted for the bank rule-easing bill, are also moderates. The exception is Ohio Senator Sherrod Brown, whose position as ranking member on the Senate Banking Committee makes him an important stakeholder for the industry.

Картинки по запросу Banks back Democrats in bid to rebuild bipartisan support

The sector hopes boosting moderates will constrain the big bank-bashing wing of the Democratic Party, including Senator Elizabeth Warren, a likely presidential candidate in 2020, and Representative Maxine Waters, who is poised to chair the committee overseeing banks if Democrats win the House.

Rebuilding broad bipartisan support will be challenging, consumer advocates say. Big banks continue to be a sensitive issue within the Democratic Party, which was bitterly divided over the May legislation, and among voters.

Strategic Movie

The midterm elections mark the first time since 2012 that the banking industry has given more money to Senate Democrats than Republicans, according to center’s data, which is based on federal records released on Sept. 24.

The sector has dished out $2.5 million to Senate Democrats and $1.8 million to Republicans this election cycle. By contrast, the industry gave $1.6 million to Senate Democrats and $5.2 million to Senate Republicans during the 2016 elections.

The American Bankers Association, the top Washington bank lobby group, has contributed $83,000 to Senate Democratic candidates this cycle and is leading the industry’s push to regain bipartisan support, said its CEO Rob Nichols.

Nichols, whose association has for the first time bought advertisements for 12 midterm candidates, including four Democrats, called enhancing the industry’s political capability “strategically important.”

“This is rigorously bipartisan: if you support us, we want to support you,” he said. “This is not about playing party favorites. For decades, banking policy was bipartisan up until Dodd Frank, and we’re excited to see a return to this bipartisanship.”

Industry officials hope the senators they support will back further legislation easing capital markets rules drawn up in a package that passed the House in July but has yet to pass the Senate.

“Democrats being supported by the banks are generally viewed as moderate elements in a Senate that is being steadily stretched to its extreme ideologically,” said Isaac Boltansky, director of policy research at Washington-based Compass Point Research & Trading.

He added that the industry is also anxious to ensure these senators are around to oversee a swift implementation of May’s new laws by the banking regulators.

Two-thirds of registered voters are more likely to vote for a candidate who supports regulating Wall Street and big banks when they talk about the economy, according to a September survey by The Harris Poll on behalf of Better Markets, which lobbies for tighter industry regulation.

Ken Bentsen, the chief executive of bank lobby group the Securities Industry and Financial Markets Association (SIFMA) and a former Texas congressman, said it was unfortunate that the industry continued, in his view, to be seen “as a political piñata.”

But he said Democratic views on the banking industry were not monolithic, and he saw opportunities to work with members of the party.

“We’ll address it, however it turns out,” he said of next month’s election.

 

How Azerbaijan contributed to victory in WWII? - VIDEO

News line

Armenian bishop Bagrat: We will initiate impeachment and disobedience actions
21:24 09.05.2024
Malta’s former prime minister charged with corruption over hospital scandal
Malta’s former prime minister charged with corruption over hospital scandal
19:50 09.05.2024
Azerbaijan to hold joint military exercises with participation of Türkiye, Georgia
19:29 09.05.2024
Anatolian Phoenix - 2024 Exercise continues - VIDEO
Anatolian Phoenix - 2024 Exercise continues - VIDEO
19:02 09.05.2024
Zelenskyy: 'Europe is a battlefield deciding the fate of not just Ukraine, but many other nations.'
18:35 09.05.2024
Erdogan: Europe’s Gaza policy shaken faith in European values
18:21 09.05.2024
Netanyahu: "Israel will stand alone if it has to"
18:00 09.05.2024
Zelenskyy officially appoints ex-commander - in - chief ambassador to UK
17:22 09.05.2024
Rumen Radev: Bulgaria promotes stability and security in South Caucasus
17:00 09.05.2024
Human bone fragments found in liberated Malibeyli village
16:40 09.05.2024
Scholz: ‘War in Ukraine to last longer than we would like’
16:17 09.05.2024
MFA: Türkiye maintains its determination to be EU member
MFA: Türkiye maintains its determination to be EU member
16:00 09.05.2024
Azerbaijan’s weather forecast for May 10
Azerbaijan’s weather forecast for May 10
15:42 09.05.2024
Putin and Pashinyan Agree to Withdraw Russian Troops from Border Posts Near Azerbaijan and Zvartnots Airport
15:25 09.05.2024
US companies interested in Azerbaijan’s renewable energy sector, says ambassador
15:11 09.05.2024
As Russian Power Declines, Turkic Military Cooperation Grows - OPINION
15:00 09.05.2024
Engr Qaiser Nawab Collaborates with ICCI President to Boost Youth Entrepreneurship and Economic Development
Engr Qaiser Nawab Collaborates with ICCI President to Boost Youth Entrepreneurship and Economic Development
14:37 09.05.2024
"A Potential for Conflict": Turkish Political Scientist's Warning on Iran-Israel Tensions
14:20 09.05.2024
How Azerbaijan contributed to victory in WWII? - VIDEO
13:54 09.05.2024
A Living Testament to Valor: 99-Year-Old Veteran Recalls Second World War Triumphs - INTERVIEW
13:36 09.05.2024
Baku Honors World War II Veteran : VIDEO
13:12 09.05.2024
Israeli MFA Political Director Honors War Hero Hazi Aslanov in Baku Visit
12:50 09.05.2024
Putin: Russia’s strategic forces always in combat readiness
Putin: Russia’s strategic forces always in combat readiness
12:21 09.05.2024
President Ilham Aliyev grants awards of President of Republic of Azerbaijan to artists - ORDER
12:00 09.05.2024
President Ilham Aliyev and First Lady Mehriban Aliyeva pay tribute to Azerbaijanis who died for Victory over fascism
11:40 09.05.2024
North Macedonia elects first woman president
11:21 09.05.2024
Permanent reps of Azerbaijan, Türkiye to UN mull bilateral relations
11:05 09.05.2024
US Department of Defense inks contract with Lockheed Martin for production of HIMARS MLRS
US Department of Defense inks contract with Lockheed Martin for production of HIMARS MLRS
10:50 09.05.2024
First Vice President of Azerbaijan Mehriban Aliyeva shares a post on occasion of 9 May Victory Day
10:25 09.05.2024
Ambassador: Azerbaijan to host side event focusing on environmental consequences of landmines on margins of COP29
10:16 09.05.2024
Turkish Opposition Leader Özgür Özel Announces Planned Visit to Azerbaijan
10:00 09.05.2024
Number of Palestinians killed in Gaza Strip exceeds 34,800
Number of Palestinians killed in Gaza Strip exceeds 34,800
09:45 09.05.2024
Erdogan: Peace agreement between Baku and Yerevan should be signed as soon as possible
09:35 09.05.2024
President Ilham Aliyev sends a letter of invitation to COP29 to Turkish President Erdogan
09:17 09.05.2024
Presidents of Azerbaijan and Bulgaria make press statements - FULL
09:00 09.05.2024
79 years pass since victory of German fascism
00:00 09.05.2024
Global Forum on Antisemitism: Azerbaijan is truly a safe place for all Jews, Gady Gronich says
Global Forum on Antisemitism: Azerbaijan is truly a safe place for all Jews, Gady Gronich says
22:35 08.05.2024
Armenia suspends financing CSTO
21:00 08.05.2024
Horror movie to be made about Jesus’ childhood
20:02 08.05.2024
Israel's team reportedly to stay for further Cairo talks
Israel's team reportedly to stay for further Cairo talks
19:40 08.05.2024
Hamısı