Wall Street Democrats Seek to Reignite Influence Amid Political Shifts
For the past eight years, Wall Street Democrats have been vocal about their grievances with Washington. The unpredictable nature of former President Donald Trump’s administration left many feeling unsettled, and the subsequent shift in the Democratic Party’s approach, particularly under President Biden’s aggressive antitrust regulators, further alienated them. However, with Vice President Kamala Harris emerging as the party’s presumptive presidential nominee, these Democrats see a renewed opportunity to reclaim their influence.
Some members of this financial elite have reverted to traditional methods of exerting influence, such as writing checks, organizing fundraising dinners, and orchestrating discreet campaigns. Others have adopted a more direct approach to lobbying, inspired by the public tactics favored by Trump and vocal C.E.O.s like Elon Musk and Bill Ackman. Notably, Barry Diller, the chairman of IAC, openly criticized Lina Khan, the chair of the Federal Trade Commission, stating, “I think she’s a dope,” during a CNBC interview. Although he later apologized for his choice of words, he refrained from retracting his critique of her policies.
Reid Hoffman, co-founder of LinkedIn, also voiced his apprehensions regarding Khan in interviews with CNN, expressing that while he supports antitrust measures, he believes that “waging war is not” the right approach. He subsequently clarified that he would support Harris irrespective of any changes in Khan’s position.
Across Wall Street, there is a consensus that Khan’s stringent regulatory actions—often blocking mergers and acquisitions without much regard for the likelihood of success in court—are concerning. However, many insiders are uneasy about public lobbying tactics, arguing that such actions reveal a fundamental misunderstanding of political dynamics and could ultimately be counterproductive.
Political strategists echo these sentiments. Stuart Stevens, a political consultant with prior experience working for Mitt Romney, remarked, “I’m not really sure if it’s very effective. I’ve always felt once you make these things public, it makes it harder for politicians to act.”
Critics have swiftly labeled the public lobbying efforts as self-serving.
According to reports from CNN, the F.T.C. has initiated several investigations that involve subsidiaries of Diller’s IAC, while Hoffman holds a board position at Microsoft, which is also facing scrutiny from the F.T.C. due to its investment in OpenAI.
