This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Politics of Wall Street: Race for 'Obama' Senate Seat

WASHINGTON ( TheStreet) -- In the Illinois race for the U.S. Senate seat once occupied by President Barack Obama, Democrat Alexi Giannoulias is trying to make Wall Street an issue but his Republican opponent Mark Kirk is having none of it.

Giannoulias' official campaign Web site criticizes Kirk for "catering to big Wall Street Interests" while Kirk's campaign site is relatively devoid of references to investors, banks or Wall Street.

To understand Kirk's position on Wall Street regulation, it's necessary to visit his Congressional Web site, where he states that he supports "reforms to the criminal code and the regulatory structure that ensure the accuracy of financial statements, protect the interests of investors, preserve the benefits of stock option and 401 (k) plans, and prohibits executives from fraudulently profiting at the expense of rank and file workers." That said, he also makes clear that he "opposes excessive legislation that chokes the growth of growing smaller public companies."

Kirk voted against the financial reform bill that Obama signed into law in July and explained his decision this way: "I support bipartisan, common-sense financial regulations, but we should not do so at the expense of jobs or cutting loans for small businesses. Rep. Barney Frank's 2,319-page financial regulation bill failed to address any major reforms for two institutions responsible for a significant part of the Great Recession - Fannie Mae and Freddie Mac. After receiving a nearly $150 billion taxpayer bailout, Fannie and Freddie still lack an independent inspector general."

The most obvious impact of Kirk's position would be on Fannie Mae (FNMA) and Freddie Mac (FMCC), with potential consequences for major mortgage lenders and servicers. Wells Fargo, (WFC - Get Report), Bank of America (BAC - Get Report) and JPMorgan Chase (JPM - Get Report) were the three biggest originators of mortgages in the second quarter, according to Mortgage Daily.

By contrast, Giannoulias is campaigning on some very specific proposals that could have consequences for banks in particular and Wall Street in general. He supports "greater capital requirements at financial firms" and calls for "immediate contributions by large financial institutions to an 'emergency fund' that could be tapped for any future bailout."

These are references to the so-called "too-big-to-fail" banks that received taxpayer bailouts, including Citigroup (C - Get Report), Goldman Sachs (GS - Get Report), Morgan Stanley (MS) as well as Wells Fargo, JPMorgan Chase and Bank of America.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 -1.56%
C $46.28 -0.96%
GS $164.11 -0.11%
JPM $63.20 -0.63%
WFC $49.98 -0.85%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs