Big Banks Aren't Too Happy with GOP

Posted: Mar 01, 2014 2:07 PM
Big Banks Aren't Too Happy with GOP

Remind me who it is again that is all chummy with the big banks…

The latest tax proposal from Rep. Dave Camp hikes taxes on banks and threatens the bottom line of some major private equity groups in New York. Wall Street is not too happy about this, and is threatening to limit donations to Washington Republicans.

Lobbyists for the biggest banks are now meeting with lawmakers to figure out what the bank tax would cost them and how it functions. Big banks are looking to turn Republicans against this bank tax. This is putting the party at risk for losing a reliable source of campaign funding in the middle of a very important campaign year.

The NRCC brought in roughly $3.5 million from the investment industry so far this cycle. In 2012 this sector accounted for $9.9 million.

Although this may be a good opportunity for Republicans to show Americans that they are not in cahoots with the big banks, it is also a very serious strategy to consider because of the backlash it could have.

Eric Cantor already met with some lobbyists this week to try and calm their nerves. He made sure to express that Camp’s bill is still merely in draft format and that there are still changes to be made. Other Republicans plan on using this bill as a talking point to make a statement, but it won’t be voted on for a while.

This is a very sticky situation for the Republicans. They can either choose to make serious moves in tax reform, while risking their political funding or they can maintain their relationship with the big banks in order to assure their successes in the midterm elections.