A calculated shift among the financial elites on Wall Street is becoming evident in response to the growing prospect of Donald Trump becoming the GOP nominee.
As Trump rolls towards securing the Republican nomination for the 2024 presidential election, Wall Street executives are taking strategic stands to either remain silent or, in some cases, get in line to support the former president over Democratic incumbent Joe Biden.
Jamie Dimon, CEO of JPMorgan Chase, known as the “King of Wall Street,” told CNBC about Trump’s economic policies: “Take a step back, be honest. He was kind of right about NATO, kind of right on immigration. He grew the economy quite well. Trade, tax reform worked.”
Wall Street’s growing acceptance of Trump’s ascent stems from the fact that executives are geared towards conforming to the shifts in the political landscape. Anthony Scaramucci, a longtime Wall Street executive and former Trump communications director, expressed concerns about the trend.
“It’s painful for me to admit this, but Wall Street is basically nonchalant to this election,” said Scaramucci, who has been critical of his former boss in recent years. “I think they view Donald Trump by and large as benign to somewhat beneficial to the economy and business.”
Financial executives are averse to the idea of actively opposing Trump, while some also recognize the potential benefits his candidacy might unfold. This is a clear indication of Wall Street’s ironclad position of perpetually favoring economic interests over ideological differences.
“They are not out there to be political ward-heelers,” Jeffrey Sonnenfeld, a senior associate dean at the Yale School of Management, said of Wall Street execs. “They are not out there doing door-to-door campaign solicitations. They are there to run their companies.”
As stewards of their investors’ money, and due to concerns about internal divisions, many executives are now unwilling to openly oppose Trump. Financial elites are wary of the different constituencies they are serving, from their workforce to investors and customers.
As Trump’s dominance in the primaries and his lead in national polls diminish hopes for alternative candidates, it further intensifies the plight for Wall Street. Charles Myers, a former vice chairman at investment bank Evercore and a Biden fundraiser, said, “I think most of them have resigned themselves to a Trump primary win and don’t want to throw good money after bad trying to stop him.”
Uncertain prospects of alternative candidates are contributing to the complex dynamics within Wall Street. Nikki Haley, Trump’s only remaining GOP possible challenger, has a scheduled fundraiser hosted by finance sector figures in New York after the New Hampshire primary. Attendees are openly expressing their withdrawal of support, if an Iowa landslide repeats in the Granite State.
This shift in tone speaks for the industry’s bias towards pragmatism, emphasizing the anticipated benefits of Trump’s economic policies against ideological discrepancies. On Wall Street, asking if Trump is good for the economy is a separate question from whether he is good for the country.
“Trump is so much better than any of these candidates for Wall Street, when it comes to ballooning the economy and allowing for the free flow of business and competition,” Constellations Group CEO Bill White, a Trump fundraiser who previously led the Intrepid Museum in New York City, told Politico.
For now, Wall Street executives are taking a strategic position with the increasing likelihood of Trump winning the Republican nomination for the 2024 presidential election. Financial elites are inclined to consider potential impacts on their businesses and the broader economy over political affiliations.
