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The panicked Wall Street financier is competing to meet behind the New York mayor’s “anyone” candidate after 33-year-old democratic socialist Zohran Mamdani unexpectedly concluded his Democratic nomination on Tuesday.
According to people involved in the discussion, within hours of the major outcome, hedge fund investors, private equity titans, corporate lawyers and investment bankers called each other, texted and texted each other.
Investors are playing the game whether former New York Governor Andrew Cuomo, who lost to Mandani but can run as an independent, or current mayor Eric Adams, is the best candidate back. Adams, who was indicted as a federal corruption charges dismissed by President Donald Trump’s administration earlier this year, runs an independent.
“The response from the business community will depend on Mamdani revealing his position on Israel and his support for the business community,” said Kathryn Wilde, who heads the partnership with New York City, the city’s top advocacy group for the city’s corporate elite.
Business community members have donated more than $30 million to support Andrew Cuomo at the Democratic primary ©Adam Gray/Bloomberg
She added that the official response from the New York Titans to the shocking major outcome comes after “the dust settles down.”
Anyone who wins the Democratic primary is usually a favorite to win the November general election.
He was convinced that the Mamdani administration would raise the already high tax rates in New York and force the wealthy to leave the city. Members of the business community have donated more than $30 million to support Cuomo in the Democratic primary.
The loss of the former governor gave a sense among New York financial operators that Mamdani’s momentum had to be quickly beaten. Since his victory was announced, they have been busy sketching plans to spend tens of millions of dollars more money on the new media blitz and the young candidates’ campaign for the November poll, people familiar with the effort said.
Mayor Eric Adams is run independently ©Michael M Santiago/Getty Images
Mamdani is seeking to raise the corporate tax rate in New York from 7.25% to 11.5%, and add a 2% income tax surcharge to individuals making more than $1 million.
His campaign estimates that this would raise about $1 billion to pay pledges such as free bus services and universal childcare, but such increases would require approval by the state legislature.
“Both between[Cuomo and Adams]both will be better than the mum tick,” said the New York bank leader, but many other banks wanted to run to avoid cannibalizing each other’s votes.
Others said that unless moderate candidates become mayors, many wealthy New Yorkers will flee and erode taxpayer bases.
“If the tax base is eroded and Jamie Dimon starts moving people to Texas, the Citadel will continue to move to Florida – that’s the direction we’re heading.”
Mamdani Primary Victory Party ©Heather Khalifa/AP
A small group of billionaire hedge fund managers, including Bill Ackman and Dan Loeb, have been particularly vocal about their opposition to Mamdani.
In X’s posts on Tuesday and Wednesday, they theorized how he would be defeated in the November election. Roeb writes that “several mayors of New York City ran (and won) outside the traditional two-party line.”
However, the CEO of a Wall Street investment bank dismissed fears that if Mamdani wins in November, the company would run away.
“The city seems to be thriving for people with money. My sense is that this election shows a backlash against old, established, rich people, and perhaps Trump, because he and his crowd are all of them,” the CEO said.
Mamdani’s campaign victory over the city’s elite preferences is his favorite theme at his election night party in Queens, and his jubilant supporters are sure they can beat their better-funded enemies.
“The billionaires are watching this moment,” New York Rep. Needia Bellazukes said in a speech at Mamdani’s event. “They’re going to spend everything they have to stop Zoran. Why? They’re scared because they know that this campaign is threatening the business as usual.”
