Biden’s biggest donors left powerless to sway him to quit race
Too many voters worry about the president’s age, a Wall Street executive says
THEY pride themselves on being doers; taking decisive action at crucial inflection points and anticipating major power shifts.
Yet in the midst of one of the biggest crises ever to strike the Democratic party, Wall Street’s most influential donors are resigned to watching and waiting, like much of the rest of the country.
The view within Manhattan circles, one top Wall Street executive said on Monday (Jul 8), is largely unchanged since Joe Biden’s Jun 27 debate.
The executive noted that a change at the top of the ticket will boost the Democrats’ chances of beating Donald Trump. This comes after Biden pledged to fellow party members that he will remain in the 2024 race, seeking to quell dissent within his ranks as lawmakers return to Washington.
However, what is clear to these ultra-rich bankers and investors is that there is no obvious path to making the change happen themselves. Some also see sitting on the sidelines as a savvy option, wanting to avoid fuelling a narrative that financiers are pushing Biden out.
Money usually talks – perhaps, not in this case. Biden’s political operation has about US$240 million on hand, and efforts from those such as Mike Novogratz to drum up funds for a yet-to-be-determined alternative have thus far fallen far short of that kind of figure.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The senior Wall Street executive, who requested anonymity to speak freely about private conversations, said he would still bet that there are too many voters who worry about Biden’s age for the president to remain in the race.
The executive has, however, taken to voicing concerns to his family and friends, convinced that only Democratic leaders such as Chuck Schumer and Hakeem Jeffries can turn the tide.
Billionaire Bill Ackman, on the other hand, took to social media to publicly lay out his view of the state of play.
“Absent a more serious health incident between now and the election, it now seems eminently clear that Biden will be the candidate,” Ackman wrote.
Biden remains committed to presidential race
Among Washington observers, the feeling is that the next few days will be critical for Biden’s candidacy.
At least nine US House of Representatives members have called for him to step aside. Its Democratic caucus will meet on Tuesday morning, potentially leading to more defections.
One donor – who requested anonymity to discuss private conversations – noted that there is a feeling of inevitability that Biden will bow out of the running. The current parlour game is when and how it will eventually come to pass, the person noted.
Biden, 81, wrote in a letter to the group on Monday that he is “firmly committed to staying in this race, to running this race to the end, and to beating Donald Trump”.
In a televised interview, the president dared anyone who thinks he should not seek re-election to challenge him at the Democratic convention.
“I don’t care what the millionaires think. I want their support but that’s not the reason I’m running” Biden said.
Still, the Biden campaign needs wealthy donors’ money, with Trump and the Republicans now raising similar sums as the Democrats.
“The party has spoken. The Dem nominee is me. We can’t waste any more time being distracted,” Biden told some of his largest contributors on Monday in a call. He was joined alongside by campaign chair Jennifer O’Malley Dillon and Maryland Governor Wes Moore.
Donations to the campaign have thinned in recent days, with some wealthy donors saying they will withhold any future contributions until Biden is off the ticket, a person familiar with the fundraising efforts reported.
The Biden campaign has said that grassroots contributions surged following the debate, raising more in June than any other month.
Biden’s sizeable war chest had been a selling point for donors, especially compared to Trump’s cash-poor campaign through the primaries.
Trump has caught up and surpassed Biden since clinching the Republican nomination. He now has US$285 million cash on hand, Trump’s campaign noted.
Unlike Trump – who has spent little on television or offices in battleground states so far – Biden’s campaign is employing an expensive strategy.
AdImpact said that Biden’s campaign alone booked US$48 million in advertising last month.
“I know a lot of donors who are very unhappy and aren’t going to spend money on the campaign,” said Vin Ryan, founder of Schooner Capital and a longtime Democratic donor.
“A lot of money will be diverted to House and Senate races,” the founder added.
Ryan said a Biden replacement would likely get an outpouring of donor support, with many willing to bet on a younger and more articulate candidate.
Two Democratic fundraisers – who asked not to be identified to discuss private conversations – said they have been advising donors to shift their donations to competitive House of Representatives races even before the debate.
However, they now worry that with Biden atop the ticket, Democratic congressional candidates will lose en masse to Republicans.
“Let’s not blindly follow our friend off a cliff. It’s time to move on from the gerontocracy,” Novogratz posted on social media on Monday.
Efforts to find Biden replacement unlikely to pay off
The lack of real power to force Biden out, combined with a desire to prevent a Trump victory, has led some Democratic donors to launch long-shot efforts to find a replacement.
Bill Harris, the former chief executive officer for Intuit and PayPal, has personally funded polling about voter views of Biden’s age in swing states.
Georgetown University Professor Rosa Brooks and investor Ted Dintersmith have also concocted a plan for a “blitz primary” that would involve celebrities such as Oprah Winfrey, Taylor Swift and Stephen Curry.
The plan – which its authors admit is novel, but unlikely to come to fruition – involves celebrities introducing candidates to voters before conducting a snap election to pick a Biden successor. BLOOMBERG
Share with us your feedback on BT's products and services
