Scoop: Wall Street thinks Kamala Harris picking governor for VP
Hans Nichols
7 hours ago
The Harris campaign is pressing Wall Street donors to cut their checks as soon as possible, citing a financial rule that bars contributions to tickets featuring a sitting governor, according to people familiar with the matter.
Why it matters: The urgency of the requests has led some donors to conclude that Harris plans to pick a governor — and not a senator, like Mark Kelly of Arizona — to be her running mate.
- If the campaign signals are being correctly interpreted, that would narrow the veepstakes down to Kentucky Gov. Andy Beshear, Pennsylvania Gov. Josh Shapiro, and Minnesota Gov. Tim Walz.
- Some donors in the financial services and investment industry think they have until Sunday to get their contributions in.
- Harris told reporters on Tuesday that she has not made a final decision. Kelly is the only senator currently seen as a frontrunner.
- Harris plans to barnstorm swing states across the country with her running mate next week, hitting Pennsylvania, Wisconsin, Michigan, North Carolina, Georgia, Arizona, and Nevada, according to the campaign.
How it works: The Securities and Exchange Commission has a strict rule for some employees at financial services firms regulating their donations to campaigns for state office, like a governor's race.
- The goal is to snuff out "pay-to-play" schemes, where donors in the investing industry might seek to curry favor with the state officials who control the billions of dollars in state pension funds.
- The restrictions generally apply to certain employees of financial firms — including some banks and asset managers — that do business with a state or a locality.
- When a state official, like a governor, is seeking federal office, the rules are applied to the federal race. If Harris picks a governor for her running mate, the campaign expects them to be triggered.
Flashback: In September of 2016, Goldman Sachs imposed restrictions on high-ranking employees on donating to presidential campaigns, including Trump's, after he picked Mike Pence, then the sitting governor of Indiana, to be his running mate.
What they're saying: Harris insists that she has not chosen her vice president, saying "not yet" when asked by a reporter if she's made a decision.
- "Any reporting on developments or updates in Vice President Harris' running mate search are premature and speculative," said a campaign spokesman.
Between the lines: It's unclear if the SEC restrictions apply to super PACs.
- There may also be some national Democratic funds that are closely associated with the Harris campaign but aren't covered by the SEC rules.
What we're hearing: Restrictions on Wall Street donations will likely come from two places.
- For starters, compliance officers at many financial services firms are aware of the regulations and will likely announce their own internal restrictions.
- And the Harris campaign itself could impose, out of an abundance of caution, a blanket restriction on investor contributions.
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