Follow the money: Who’s funding whom in the U.S. presidential race

Share

Silicon Valley and Wall Street have thrown their support behind Hillary Clinton's bid for the U.S. presidency, government filings show, helping the Democratic candidate raise $47.5-million (U.S.) for her campaign.

But although Ms. Clinton raised more than her Democratic and Republican rivals in the second quarter this year, she failed to attract wide support from smaller grassroots donors, who were instrumental in getting President Barack Obama elected.

Employees from Morgan Stanley, Bank of America and Wall Street's other big banks donated more than $221,000 to Ms. Clinton's campaign, according to filings with the U.S. Federal Election Commission.

The only Republican who garnered similar attention from Wall Street was former Florida governor Jeb Bush, who received $144,000 from Goldman Sachs staff.

Ms. Clinton was also the only candidate to draw sizable donations from Silicon Valley. Facebook employees gave around $40,000, Google staff donated $57,000 and Twitter about $10,000.

Ms. Clinton also received donations from hedge funds, which she has singled out as part of the unregulated shadow banking system and for earning outsized salaries.

Staff from hedge funds Pershing Square, Renaissance Technologies and Fortress Investment Group, contributed a total of $19,000.

Maintaining a positive relationship with Wall Street while appealing to the Democrats' progressive base has been tricky for Hillary Clinton. Many are livid about the 2008 housing meltdown and ensuing financial crisis, where taxpayer funds were used to bail out the big banks and no one has gone to jail.

Ms. Clinton has tried to tap into this anger in her speeches. But her campaign disclosures show that her ties to the financial-services industry are strong.

One of Ms. Clinton's major fundraisers, Tom Nides, is the vice-chair of major bank Morgan Stanley. He served as her deputy when she was Mr. Obama's secretary of state. Morgan Stanley employees donated $88,000, according to the filings. Her other big fundraisers include the founder of a boutique investment bank and the founder of a private equity firm.

Ms. Clinton's husband, former U.S. president Bill Clinton, presided over a period of economic prosperity in the United States as well as deregulation on Wall Street. Many progressives blame the recent financial crisis on the Clinton administration's decision to weaken banking rules, which allowed the banks to become bigger and much more complex.

One of Ms. Clinton's Democratic rivals, independent Vermont senator Bernie Sanders, is rising in the polls. A self-described socialist, Mr. Sanders has been able to tap into the critical grassroots network. He raised $15-million in the three months ended in June, most of which came from those who donated less than $200. The average donation was $35, his campaign said.

Presidential candidates are required to disclose their donations and expenses every quarter with the government. This week's filings provided a look at who is donating and how candidates are using their funds in an election expected to set records for spending.

With 15 candidates vying for the Republican Party's nomination, fundraising has become essential to surviving the campaign. Conservative candidate Ted Cruz spent 54 per cent of the $10-million he received from donors in the quarter, according to filings.

Billionaire real-estate tycoon Donald Trump is essentially paying for his campaign. He provided his one-month-old campaign with a $1.8-million loan and raised $92,000 from donors. Of that amount, he spent 74 per cent of his funds, with the bulk being used for consulting services, according to his campaign filings.

However, the campaigns' disclosures do not tell the whole story. Super PACs, which do not have to adhere to the $2,700 cap on individual donations, are allowed to collect unlimited funds from individuals and corporations. They are already playing a huge role for Republicans. Mr. Bush's campaign raised $11.4-million, more than the 12 other Republicans who filed their campaign finance figures this week. But the Super PAC affiliated with his campaign has raised more than $100-million.