Though Democrats scored a big political victory in passing regulatory reform, many are already paying for it as the financial services industry directs more of its contributions toward Republicans and moderates who tried to pare back the revamp.
Bankers have traditionally favored business-friendly Republicans, but they appear more cognizant of the stakes this year. The GOP has a good shot at capturing the House and an off chance of retaking the Senate. If the Republicans seize either chamber, it could help efforts to revisit lost battles from the regulatory reform campaign.
"Although there is no 100% fail-safe way to decipher it, it doesn't take a very big leap to see that financial reform has been a major driver in having Wall Street-related donations go the way of Republicans," said Dave Levinthal, the director of communications at the Center for Responsive Politics, a nonpartisan organization that tracks money in politics. "Wall Street simply wasn't happy with the process and not terribly thrilled with the results."
Political action committees of commercial banks have contributed a total of $5.4 million to candidates this cycle, with 55% of it going to Republicans as of Aug. 22, according to the center. Among the favored recipients, besides Republicans, were those holding leadership posts and a handful of Democrats who fought to moderate the reform.
Leading the commercial bank PAC beneficiaries is House Minority Leader John Boehner, who got $79,500 and would probably become Speaker of the House if the Republicans win a majority; Sen. Richard Burr, R-N.C., a fiscal conservative in a tight race for reelection who got $77,750 and represents a state with major banking and mortgage insurance interests; Sen. Richard Shelby of Alabama, the senior Republican on the Banking Committee, who got $66,500, and Rep. Mike Castle, R-Del., a senior Financial Services Committee member, who is running for the Senate and got $65,500.
