Much of Wall Street is supporting Mitt Romney, who vows to repeal parts of the 2010 Dodd-Frank Act, which heavily regulates how the financial sector is run.
New York — Mitt Romney has won the support on Wall Street (despite the financial industry standing behind President Obama four years ago) thanks to his business experience and plan to loosen market regulation.
The top five donors to Romney’s campaign are global banks, four of which are American, with Goldman Sachs contributing the highest amount, $994,139, according to data from the Center for Responsive Politics. The only non-American bank is Credit Suisse, which is ranked fifth with a donation of $618,941.
By contrast, the top contributor to Obama’s campaign is the University of California, which donated about $1.1 million, followed by two tech giants, Microsoft Corp. and Google Inc.
Wall Street is most concerned with the Dodd-Frank Act, passed by Obama in 2010, which placed tighter regulations on banks. Obama recently said he wishes to reform the financial sector even further by changing the way those on Wall Street get compensated.
Romney, on the other hand, says he will repeal provisions of Dodd-Frank, if elected.
“Romney has a history as a very astute business man and it may be in the best interest of the financial industry if Romney takes office and makes some changes to the current status of Dodd-Frank,” said Greg Budetti, a financial analyst at Nomura Securities.
While Budetti believes the outline of Dodd-Frank is fair in the sense that banks needs to be transparent, he thinks the regulations are too restrictive.
“Protection for investors and consumers is very important but it seems as if these protective measures handcuff companies in some way,” Budetti said. “Obviously, I am all for following rules and regulations, but working in the financial industry, I also feel as if companies need to be able to run themselves in a true capitalist and free-market economy.”
Budetti’s feelings echo the sentiment of many working in the financial industry, who believe Obama has just not delivered and has, furthermore, placed unnecessary regulations on the financial sector.
“Obama has not proven that he is capable of getting this country out of its current state and has kind of treaded water without bringing his changes to life, but it will certainly take longer than four years to correct all of the problems in the U.S. economy,” said Budetti.
Budetti believes that no matter who is elected this evening, changes in the financial sector must be made. “Ideally, whoever is elected needs a plan to get American businesses back on the right path to being successful and promoting growth and stability within our economy,” said Budetti.