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Some of the US' top bankers back Democrat contenders

Wall Street folklore has it that wealthy financiers prefer a Re-publican president, but some of the US' top bankers are backing Democratic contenders in this year's presidential election.

Financial advisors say many Wall Street money managers are still hedging their bets on this year's presidential race, partly because the front-runners remain unclear for the Nov. 4 poll.

"This may potentially result in a more volatile marketplace as investors weigh the `fear of the unknown,'" Mike Schwager, a market strategist at Claymore Securities, wrote in a note to clients this week.

Republicans are generally typecast as being more friendly to business while Democrats are stereotyped as more likely to raise taxes, but financial professionals say Wall Street can live with either party running the White House as long as the economy is in good shape.

The US economy, however, is sailing into choppy waters stirred up by a persistent housing slump, a credit squeeze, soaring energy costs, and slowing job growth.

The stock markets have plummeted amid the uncertainty and Goldman Sachs economists warned this week that the world's biggest economy appears to be "falling into a recession."

The political contest, as a result, has Wall Street on tenterhooks.

"In general Wall Street going into an election tends to want to see a Republican, but in the long term, they live with Democrats very, very easily if the Democrats deliver the goods," said Joel Naroff, president of Naroff Economic Advisors.

Naroff, who advises companies on economic risk and consults for Commerce Bank and Cumberland Advisors, said the stock markets might display a "knee-jerk" reaction to a particular candidate, but he said Wall Street is waiting to find out who the top candidates will be.

Despite increased economic angst, the leading Democratic contenders are bucking the notion that Republicans are more favored on Wall Street.

Democrat Hillary Clinton reaped the most donations from the securities and investment industry in the first nine months of last year, netting US$4.74 million, according to the Center for Responsive Politics.
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