Wall Street puts its money behind Obama
Wall Street is putting its money behind Democrat Barack Obama for president, despite worries that his administration would raise taxes and take a tougher line on trade and regulation.
Obama takes on rivals over U.S. economic woesThe signs Wall Street reads point to Democrats prevailing in the November presidential and general election as voters punish the incumbent Republican Party for a flagging economy and lengthy Iraq war.
And the fact that Obama began raking in a bigger share of the cash as his campaign picked up steam suggests that investors simply want to back the eventual winner.
Illinois Sen. Obama, who captured the Democratic presidential nomination on Tuesday after a lengthy primary battle against New York Sen. Hillary Clinton, has received $7.9 million (4.1 million pounds) n contributions from the securities and investment industries, according to the Center for Responsive Politics.
His opponent, Republican Sen. John McCain of Arizona, banked a little under $4.2 million, putting him behind fellow Republicans Rudolph Giuliani and Mitt Romney, who have long since dropped out of the race.
Overall, Democrats garnered 57 percent of the contributions from the securities and investment industry. If that trend continued through November, it would mark the first time since 1994 that they have drawn more Wall Street cash than Republicans in a presidential election year, according to the data complied by the Center for Responsive Politics.
Although the money flow has shifted dramatically this year, that Democrats have raised more than Republicans may say more about the nature of this race than Wall Street's allegiances. Obama and Clinton needed more cash to fund their protracted battle for their party's nomination.
At the end of 2007, Clinton topped the cash list from Wall Street with $6.3 million. Obama was third, behind Giuliani, CRP data shows. McCain was a distant sixth.
Robert Boatright, a professor at Clark University in Worcester, Massachusetts, who studies campaign finance, said McCain's numbers could be distorted if Wall Street were making donations to the Republican National Committee, instead of his campaign, out of concern that campaign finance rules would restrict his access to the cash.
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