"Why Wall Street is betting on Republicans to take the Senate"

Why Wall Street is betting on Republicans to take the Senate

By Danielle Douglas-Gabriel at the Washington Post

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/01/why-wall-street-is-betting-on-republicans-to-take-the-senate/

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Wall Street is pumping more money into Republican campaigns this election cycle, betting that a flip in the Senate could usher in revisions to a key financial reform law.

In past cycles, aside from the last presidential election, securities and investment firms have hedged their bets by donating roughly the same amount to both parties. But this time Wall Street has handed Republicans nearly two-thirds of the $115 million it has contributed to 2014 campaigns, according to the Center for Responsive Politics.

At stake is the chairmanship of the Senate banking committee, a critical gateway for legislation that governs Wall Street. The top seat is up for grabs next year, once the chairman, Sen. Tim Johnson (D-S.D.), retires in December.

Although ranking member Sen. Mike Crapo (R-Idaho) has expressed interest in taking over if the Republicans win the chamber, Sen. Richard C. Shelby (R-Ala.) has emerged as the frontrunner. The Alabama lawmaker, who served as banking committee chair from 2003 to 2007, has been critical of the landmark Dodd-Frank financial reform law that Wall Street views as an albatross. The financial services industry may be banking on Shelby to take up some of the revisions that have been proposed in the Republican-controlled House, including exemptions to the ban on proprietary trading, according to people close to the industry. Shelby did not respond to requests for comment.




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