Wall Street Democrats Adapt Strategies to Regain Influence Amid Political Changes

Wall Street Democrats Seek Influence Amid Changing Political Landscape

Over the past eight years, Wall Street Democrats have expressed growing dissatisfaction with their relationship with Washington. The unpredictability of former President Donald Trump’s administration left many feeling uneasy, and President Biden’s aggressive approach to antitrust regulation further alienated them from the Democratic Party. Now, with Vice President Kamala Harris emerging as the party’s likely nominee for the presidency, these Wall Street figures see an opportunity to regain their influence.

Some members of this influential group have returned to a time-honored approach of writing checks, organizing fundraising dinners, and orchestrating discreet campaigns to bolster their interests. However, a notable shift is occurring; others are adopting the public lobbying tactics favored by Trump and employed by prominent CEOs such as Elon Musk and Bill Ackman. This shift has led to open calls for Harris to consider removing Lina Khan from her position as chair of the Federal Trade Commission (FTC). Barry Diller, the chairman of IAC, candidly expressed his disdain, stating, “I think she’s a dope,” during an interview with CNBC. Although he later apologized for his choice of words, he did not retract his critique of Khan’s policies.

Reid Hoffman, co-founder of LinkedIn, has also publicly voiced his concerns regarding Khan, speaking to CNN on two occasions about the matter. He stated, “Antitrust is fine. Waging war is not.” Nevertheless, he later clarified that his support for Harris would remain steadfast regardless of whether she chose to replace Khan.

Many on Wall Street appear to share Hoffman’s sentiments, as Khan’s tenure at the FTC has been marked by a willingness to block corporate mergers and acquisitions with seemingly little regard for the potential fallout in court. Yet, behind the scenes, a number of industry leaders are expressing dissatisfaction with the trend of public lobbying, arguing that it reflects a fundamental misunderstanding of the political game in Washington and could ultimately have detrimental consequences.

Strategists have echoed these concerns. Stuart Stevens, a political consultant with a history of working for Mitt Romney, commented, “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 do.”

Critics of this public lobbying effort have quickly labeled it as self-serving. Reports indicate that the FTC has initiated several investigations involving subsidiaries of Diller’s IAC, as noted by CNN. Furthermore, Hoffman holds a position on the board of Microsoft, a company that is currently under scrutiny from the FTC due to its investment in OpenAI.