The Vampires shift direction in line with which way the wind is blowing. They don't play favourites, though they are more wary of the Democrats who tend to favour more regulatory oversight and higher corporate and income taxes.
A recent report from the Wall Street Journal reports how US finance capital is rushing to smother Donald Trump with hugs and kisses.. > > > > “The bankers I’m talking to are frothing at the mouth’, one Wall Street > lawyer told the WSJ. Only Harris backers Roger Altman and Blair Effron are > mildly disappointed. The lure of further corporate tax cuts and > deregulation overrides lingering worries that Trump’s threatened 60% > tariff on Chinese imports will re=ignite inflation. > > > > > > https://archive.is/PqOy1 > > > > > ************************************************************************ > Wall Street Luminaries Jockey for Influence on Next Trump Administration > ************************************************************************ > > Wall Street Journal > > > Nov. 8, 2024 > > > > > Gary Cohn’s phone hasn’t stopped ringing since late Tuesday night. He’s > one of a handful of so-called “Trump ambassadors” seen as an unofficial > liaison between President-elect Donald Trump’s orbit and Wall Street. > > > > That means the former Goldman Sachs president and chief economic adviser > for part of the first Trump administration is a coveted conduit for early > signals about what government policy might look like in the next Trump > administration, and who’s in line for plum jobs. > > Similarly, Howard Lutnick, the Cantor Fitzgerald chief executive officer who > has become Trump’s headhunter in chief ( > https://archive.is/o/PqOy1/https://www.wsj.com/business/howard-lutnick-cantor-fitzgerald-trump-administration-a01f3abc > ) , has been talking for weeks with heavyweights such as Apollo Global > Management CEO Marc Rowan ( > https://archive.is/o/PqOy1/https://www.wsj.com/us-news/education/the-billionaire-donor-taking-on-his-alma-mater-over-antisemitism-2d1637cd > ) , who are offering input on who could fill key roles. One person who > worked in Trump’s prior administration said far more business leaders are > raising their hands for deputy and assistant secretary roles than in 2016. > > A veritable clubhouse of Wall Street executives—even those who eschewed Trump in the past—are jockeying for influence and eagerly gearing up for the prospect of lower taxes and a dealmaking revival. “The bankers I’m talking to are frothing at the mouth,” one mergers-and-acquisitions lawyer said. It is a far cry from a few weeks ago, he said, when advisers were rushing to price and sell any corporate debt for clients because of potential unrest if Trump lost. Another lawyer said he expects that at least three big tie-ups that clients were dragging their feet on will now move forward. A top M&A banker, who typically votes Democrat, said he was personally disappointed by the outcome. But as he sat on his couch and watched the results come in, many of his corporate clients texted in elation. They seemed more than happy to trade the threat of Trump’s proposed tariffs for a lower corporate tax rate, he said. Many on Wall Street have been positioning themselves for Trump-fueled tax cuts and less regulation—especially since a gathering of around 1,400 clients of JPMorgan Chase in a ballroom at Washington, D.C.’s Mayflower Hotel two weeks ago. They were there to hear top emissaries from the Trump and Vice President Kamala Harris campaigns detail their candidates’ plans for the economy and Wall Street. Scott Bessent, a hedge-fund manager ( https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/the-ex-soros-executive-who-is-trumps-new-obsession-4be2d493 ) seen as a contender for Treasury Secretary under Trump, told the crowd the former president would win the election because the low-wage workers most vulnerable to rising inflation were fed up. Bessent detailed how Trump would cut business regulations and bring down the price of oil by expanding drilling. Blair Effron, co-founder of investment bank Centerview Partners and a Harris backer, said the inflation that had roiled the economy couldn’t be fully blamed on the Biden administration and was the result of supply-chain issues. He acknowledged that Harris would likely raise taxes slightly and detailed some of her plans to lower taxes for small businesses, build more housing and cut healthcare costs. Several attendees who heard the dueling presentations said Bessent made the better case. One, who typically votes Democrat, said he walked away certain that Trump would prevail because the policies would be easier to sell to voters. Other attendees reached out to Effron, a potential Harris appointee, to say they agreed with the Harris plan to help both entrepreneurs and corporate America. Effron and Roger Altman, founder of investment bank Evercore, hosted a watch party at a Manhattan steakhouse on election night for Harris supporters. People started leaving around 10 p.m. Bessent, meanwhile, was at Mar-a-Lago on election night with Trump, along with billionaire investor John Paulson, who famously made a fortune with a giant bet against mortgage-backed securities ahead of the financial crisis. Also there was Lutnick, who was battle-tested after rebuilding when most of Cantor Fitzgerald’s New York staff died in the World Trade Center on Sept. 11, 2001. Now a co-chair of Trump’s transition team, he has been compiling scouting reports ( https://archive.is/o/PqOy1/https://www.wsj.com/business/howard-lutnick-cantor-fitzgerald-trump-administration-a01f3abc ) about potential appointees for Trump. He has been relegating his regular Wall Street CEO duties to the early morning and late at night. Early in the evening, Duke Buchan, the national finance chair of the Republican National Committee, Bessent, and some Republican senators went to the Palm Beach Convention Center to watch the returns come in. By the time North Carolina was called for Trump shortly after 10 p.m., a sense of confidence set in, an attendee says. Each time new results were announced, the crowd became rowdier. Now, some on Wall Street who had been on the fence about Trump or who made minimal donations to his campaign are opening their wallets, offering to help pay for the coming inauguration. Wall Street’s change of heart comes with some lingering concerns. Some worry Trump’s policies ( https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/economists-say-inflation-deficits-will-be-higher-under-trump-than-harris-0365588e ) will reignite inflation and send the economy into a tailspin. Many also hope Trump won’t follow through on some of his most radical ideas, including placing tariffs of 60% or more ( https://archive.is/o/PqOy1/https://www.wsj.com/economy/trade/donald-trump-election-trade-tariffs-aed6c281 ) on products imported from China. > > Some on Wall Street privately say their newfound embrace of Trump isn’t > just professionally motivated, but that Democrats’ emphasis on social > topics such as transgender issues helped push them further to the right, a > sentiment shared by large swaths of working-class voters ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/gop-cements-gains-as-the-working-class-party-across-racial-lines-cd7e3ba5 > ). That was the case with Bill Ackman, the billionaire investor and > onetime reliable Democrat who has morphed into one of Wall Street’s > loudest Trump supporters. Ackman congratulated Trump on his victory in a > phone call on Wednesday. > > > This account is based on conversations with several dozen dealmakers, Wall > Street executives and people connected with the Harris and Trump > campaigns. > > > > Swarming the ‘Trump ambassadors’ > > Roughly a year ago ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/wall-street-eyes-nikki-haley-as-trump-spoiler-1b3144f3 > ) , the finance world’s biggest names were privately lamenting Trump’s > continued presence in the presidential campaign and pushing to get Nikki > Haley—or anyone else—atop the Republican ticket. Many have since coalesced > around Trump. > That includes Cohn, who resigned as economic adviser after disagreements with > Trump ( > https://archive.is/o/PqOy1/https://www.wsj.com/articles/gary-cohn-to-resign-as-president-trumps-economic-adviser-1520376157 > ) over tariffs. But the two remained on good terms. When he departed, Trump > praised Cohn’s “superb job” and called him a “rare talent.” Cohn held > fundraisers for Haley, Tim Scott and others during the primaries. Now he > and others including Larry Kudlow are seen as the “Trump ambassadors” for > Wall Street. > Many top financiers made their support known before the election in an > attempt to get a leg up and avoid retribution from Trump, who is known to > single out business leaders and former colleagues who’ve slighted him. > Some private-equity executives, for example, made it a point to be in the > audience at Trump’s grievance-laden, eyebrow-raising rally ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/keys-to-a-2024-trump-rally-dark-rhetoric-jokes-and-the-weave-62dae601 > ) at Madison Square Garden last month. > > > Billionaire Republican donors including Elliott Investment Management’s > Paul Singer and Blackstone’s Stephen Schwarzman spent months hemming and > hawing over whether to support Trump. Singer favored Marco Rubio in the > past, and his longtime romantic partner fundraised for Haley last year. > Singer ultimately made a $5 million contribution to a pro-Trump super PAC > in August. > > Schwarzman distanced himself from Trump ( > https://archive.is/o/PqOy1/https://www.wsj.com/articles/ceos-industry-groups-denounce-capitol-riots-11609974772 > ) after the capitol riots on Jan. 6, 2021, but later supported his most > recent bid for president. At a conference in Saudi Arabia last month, > Schwarzman said he thinks Trump now “has a much better base of knowledge > of how that job works” compared with 2016. > Billionaire investor Nelson Peltz also came back around after saying he > regretted voting for Trump in 2020. This cycle, Peltz’s friendship with > entrepreneur Elon Musk, the world’s richest person, helped lay the > groundwork ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/donald-trump-elon-musk-alliance-d1fe43e3 > ) for Musk’s deep involvement in Trump’s campaign. > > > Some financiers never jumped on the bandwagon. One Democratic > private-equity executive said, “I think people are depressed on a personal > level, particularly women.” The morning after the election, a major topic > of discussion at the firm’s management committee meeting was how much of a > loose cannon Trump can be and what that means for business, the executive > said. > > > > Others voiced concerns that Trump’s second administration might not > include anyone willing to challenge him. Lutnick told the Journal last > month that all hires will be “loyal” to Trump’s policies. > > “Can he get the Rex Tillersons of the world to take top jobs at the White > House? Probably not this time,” said one senior adviser to a big bank, > referencing the former Exxon Mobil CEO who called Trump a “moron” ( > https://archive.is/o/PqOy1/https://www.wsj.com/articles/rex-tillerson-is-out-as-secretary-of-state-donald-trump-taps-mike-pompeo-1520978116 > ) while serving as his secretary of state and was later fired. > Bessent, Paulson and Jay Clayton are among those rumored ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/donald-trump-cabinet-transition-president-42989f5b > ) to be in the running for Treasury Secretary, the biggest prize on Wall > Street, as well as other roles. Clayton, the former Securities and > Exchange Commission chair under Trump, has never wavered in support of > Trump and appeared on CNBC as election results rolled in, talking up his > former boss. > > > Deals, deals, deals > > In a sign of Wall Street’s euphoria, U.S. stocks added $1.62 trillion of > value ( > https://archive.is/o/PqOy1/https://www.wsj.com/finance/stocks/wall-street-salivates-over-a-new-trump-boom-c32cf952 > ) on Wednesday—their fifth-best one-day showing ever. The surge highlights > the opportunity that investors, bankers and others in finance are hoping > to embrace over four years of expected tax cuts ( > https://archive.is/o/PqOy1/https://www.wsj.com/finance/trump-tax-cuts-come-at-the-right-time-for-stocks-further-ahead-it-gets-murky-42fcf39e > ) , reduced regulation and economic expansion. > > > Dealmakers expect tie-ups to come roaring back and many foresee Trump > replacing Federal Trade Commission head, and Wall Street’s enemy no. 1, > Lina Khan and other regulators who have aggressively applied antitrust > laws. A few floated Melissa Holyoak, a current Republican-appointed > commissioner of the FTC, as a possible replacement for Khan. > > Sen. JD Vance, Trump’s vice presidential pick ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/wall-street-takes-a-back-seat-with-trumps-elevation-of-vance-6183ae08 > ) , has praised Khan ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/policy/lina-khan-ftc-antitrust-khanservatives-a6852a8f > ) and been outspoken in favor of tariffs ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/j-d-vance-offers-trump-a-fresh-face-with-a-maga-profile-034d3083 > ) , government intervention in the economy and a weaker dollar, positions > that put him at odds with many on Wall Street. > There are still Trump skeptics. They say part of the dealmaking slowdown > was due to high interest rates and depressed valuations, factors they say > aren’t directly tied to Biden policies. They also point out that Trump has > a record of opposing specific deals, including AT&T’s acquisition of Time > Warner, which some tied to his disdain ( > https://archive.is/o/PqOy1/https://www.wsj.com/articles/trump-calls-at-t-time-warner-deal-not-good-for-the-country-1511302424 > ) for Time Warner-owned CNN. > > > Big banks are also in line to benefit from an expected easing of > regulations under Trump after their CEOs have lobbied for such changes for > years. > > > > JPMorgan Chase’s Jamie Dimon, whose wife knocked on doors for Harris in > Michigan, congratulated Trump on his victory in a note to employees > Wednesday. Goldman CEO David Solomon told employees that Trump’s > administration “will bring policy changes potentially important to our > business and clients.” > > > > The 20% chance > > > > One former big-bank CEO said that while Trump’s policies are probably > better for business than Harris’s, he still worries about the “20% chance > he presents of blowing everything up.” > > It remains to be seen whether Trump’s populist tendencies ( > https://archive.is/o/PqOy1/https://www.wsj.com/politics/elections/wall-street-takes-a-back-seat-with-trumps-elevation-of-vance-6183ae08 > ) could threaten Wall Street’s priorities. And some executives said they’re > concerned about icier relations with China and a potential trade war as > well as the knock-on effects banks may experience in Europe if the Trump > administration pulls back on aid to Ukraine. > > > But one real-estate investor said for now, he’s disregarding much of what > Trump says he plans to do. “The rhetoric about tariffs is just a > negotiation and not serious, with the exception of China,” he said. “This > guy is a negotiator.” > > > > Peter Rudegeair, Gregory Zuckerman, Gina Heeb and Rachel Louise Ensign > contributed to this article. > > > -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#33571): https://groups.io/g/marxmail/message/33571 Mute This Topic: https://groups.io/mt/109527460/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/13617172/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
