Wall Street's Influence Wanes in 2024 With Trump's VP Pick

Wall Street's financial powerhouses are grappling with diminished influence in Washington, as former President Donald Trump's choice of a running mate, J.D. Vance, who is openly critical of corporate America, leaves them on the sidelines, The New York Times reported.

Trump's selection of Sen. J.D. Vance, R-Ohio, as his vice presidential pick has sent shockwaves through the financial community. Vance, known for his sharp criticism of corporate interests, was favored over more traditional Republican allies like Sen. Marco Rubio, R-Fla., Gov. Doug Burgum of North Dakota, or Sen. Tim Scott, R-S.C.

Vance's nomination signals a shift in the Republican Party's allegiance from Wall Street to Silicon Valley. During his acceptance speech at the Republican convention in Milwaukee, Vance declared that the party was done "catering to Wall Street."

"Populism is on the rise in the Republican Party," said Eric Cantor, former House majority leader and current vice chairman at investment bank Moelis & Company. "Individuals and the high-paid executives on Wall Street are not playing a central role in the election."

This new reality starkly contrasts the long-standing influence Wall Street has enjoyed in both Republican and Democratic administrations. For decades, financiers have held sway in Washington, often taking high-level government roles. Figures like Gary Cohn, former president of Goldman Sachs, and Steven Mnuchin, former treasury secretary, epitomized this close relationship.

Trump's decision to align with Vance over Wall Street's preferred candidates despite personal requests from major donors marks a significant departure from the norm. High-profile financiers, including hedge fund titan Kenneth Griffin and billionaire investor Paul Singer, opposed Vance's nomination up to the last minute.

"President Trump had many good choices for vice president, and I appreciate the thoughtful deliberations of the president and his team," Griffin said in a statement.

The selection of Vance reflects the growing influence of Silicon Valley and technology moguls like Tesla CEO Elon Musk, who lobbied for Vance's pick. Other tech leaders, including Chamath Palihapitiya and David Sacks, supported the choice.

While Wall Street figures like John Paulson and Steve Schwarzman continue to support Trump, the broader financial community feels increasingly alienated. President Joe Biden's policies, which some financiers see as antagonistic to big business, further compound the tension.

"The influence of classic bankers just isn't here," said Rob Collins, founder of Coign, a conservative credit card company, from the National Republican Convention floor.

Despite the shift, many Wall Street donors remain active in political fundraising, focusing on Senate and gubernatorial races. Griffin, for example, has indicated a willingness to contribute up to $100 million to Republicans, although it is unclear if any will support Trump's campaign.