Chuck Schumer, Scylla, Charybdis

One does not envy Democratic New York Senator Chuck Schumer these days. 

Against the backdrop of national outrage over the banking industry and a major party push to get a reform bill done, Schumer must now choose between the lifeblood of his state and the populist zeitgeist of his party.

Schumer has been a friend to Wall Street over the years, and Wall Street has loved him right back with an open faucet of campaign contributions.  He is one of the most likable politicians in the state – even for those who don’t always agree with his policies. 

But like the fabled sailors of Homer’s Odyssey, Schumer must now decide between which obstacle he’d rather face, the deep-pocketed bankers who’ve kept him in pinstripes or the furious finance reformers of his party. 

Faced with this same choice, independent but socially-liberal NYC Mayor Michael Bloomberg, who is pragmatic if nothing else, has opted to defend NYC’s banking industry.  Schumer, on the other hand, has embraced the push for reform.

From Politico:

Given the choice, Schumer has chosen to regulate, not praise, Wall Street. “He took our money and is now showing us the back of his hand,” said one banking industry executive who has unsuccessfully tried to get Schumer to roll back provisions empowering state attorneys general to sue financial firms. 

Added one Schumer ally: “This is not an easy issue for Chuck Schumer, obviously. This is an industry he’s close with — but they blew up the world’s economy, and Chuck has reconciled himself to that reality.”

Odysseus eventually made it through the narrow straits between the two monsters, but not without losing six of his best sailors.  Schumer will probably endure as well, but not without some loss of support from his Wall Street benefactors.


Mike Bloomberg vs Chuck Schumer (Politco)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. 안전공원 commented on Dec 28

    … [Trackback]

    […] Here you will find 83206 more Information on that Topic: […]

  2. Da-Lite 96384 manuals commented on Jan 20

    … [Trackback]

    […] Read More Information here to that Topic: […]