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Big business, shrinking D.C. clout

Thursday, October 03, 2013 - 02:37

Oct. 3 - Big business is finding itself marginalized by smaller conservative groups in D.C., and their diminishing influence is becoming more apparent as the shutdown continues. Bobbi Rebell reports.

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Wall Street is getting the cold shoulder from D.C.- most notably from the tea party Republicans. Senators like Ted Cruz - railing against Wall Street: SOUNDBITE: TED CRUZ, U.S. SENATOR, (R) TEXAS (ENGLISH) SAYING: "One of the reasons people are so unhappy with Washington is they get a sense that there are special rules that apply. Wall Street gets special exemptions, the big banks get special exemptions, Dodd-Frank sets up rules that hammer small banks, hammer community banks, hammer the little guys but what happens to the big guys? They keep getting bigger. Why? Because they get rules made in Washington that favor the big guy over the little guy. " But Cruz can't be that dissatisfied with Wall Street- his wife is a high ranking executive at Goldman Sachs in Texas, and Goldman contributed $65,000 to his campaign. While that may be hypocritical says Greg Valliere, Chief Political Strategist at Potomac Research Group, big business is still in a bad place: SOUNDBITE: GREG VALLIERE, CHIEF POLITICAL STRATEGIST, POTOMAC RESEARCH GROUP (ENGLISH) SAYING: "The big banks and Wall Street are petrified that we could have a real crisis on the debt ceiling and I think they are furiously lobbying. The problem is a lot of these new Tea Party members actually have great antipathy towards Wall Street and the big banks. Wall Street and big banks are the villains for a lot of the Tea Party crowd. So no I think the lobbying is not really being met with open arms among a lot of these radical republicans. Even the most prominent on Wall Street- like Bank of America's Brian Moynihan and Goldman Sachs' Lloyd Blankfein - find themselves with no politicians at their side. Blankfein seemed exasperated after a White House meeting: SOUNDBITE: LLOYD BLANKFEIN, CHAIRMAN & CEO, GOLDMAN SACHS (ENGLISH) SAYING: "They shouldn't use the threat of causing the U.S. to fail on its obligations to repay on its debt as a cudgel." The potential damage is real: Just Thursday Dallas Fed President Richard Fisher said if the U.S. defaults- the world will never be the same. SOUNDBITE: GREG VALLIERE, CHIEF POLITICAL STRATEGIST, POTOMAC RESEARCH GROUP (ENGLISH) SAYING: "I think there is long term implications here that the business agenda, the Wall Street agenda, increasingly may fall on deaf ears in the House. If there was another big scandal, another London Whale, I think that could lead to a feeling even among Republicans that we might have to crack down on the banks. So it's a whole new climate for Wall Street and the banks, as opposed to the last few decades. " Valliere expects big business will heavily increase its efforts to court the more moderate Republicans- and get more of them into office in the next election.

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Big business, shrinking D.C. clout

Thursday, October 03, 2013 - 02:37