It’s being called an “unheard of shift in party preference.” A swing of support – and financial backing – that dwarfs anything seen in nearly a quarter of a century. According to the latest campaign finance analysis from the Center for Responsive Politics OpenSecrets.org, a majority of the nation’s top corporate donors have turned from blue to red, so to speak, and are now contributing more to Republicans than Democrats. That’s the exact opposite of what they did in 2008, and as the Bloomberg points out, nowhere is the trend more pronounced than on Wall Street.
While Mitt Romney’s campaign has won the fundraising derby on a national level for the past 3 months, the change of sentiment among big business begs closer scrutiny. As my co-host Jeff Macke and I discuss in the attached video, if you had to boil the issue down, one overriding theme or reason jumps to the fore, uncertainty.
Whether it’s uncertainty over regulation, uncertainty over taxes and the budget, or uncertainty over healthcare, it’s not only eroding corporate confidence buy the cash outlays that normally go with it.
Let’s use Goldman Sachs (GS) as an example. Data shows in 2008, Goldman employees topped all other corporate donors by contributing $6.1 million dollars, three-quarters of which went to Democrats. Today, 70% of their giving is going to Republicans. And they’re not alone, party swings have also happened at JPMorgan (JPM), Citigroup (C), Morgan Stanley (MS) and UBS (UBS).