Elizabeth Warren, the Democratic Senator has ruffled some feathers at some of the big banks based upon her rhetoric and now many of these large banks are threating to withhold certain campaign donations in response to her comments in order to get the Democratic Party to reduce what they are calling the anti-Wall Street comments.
Elizabeth Warren has indicated that the too big to fail banks in the United States including JP Morgan, Bank of America, Citibank, and Goldman Sachs should be broken up into smaller banks in order to reduce the risk of systemic failure in the banking system, similar to what happened back in 2008 to 2009 during the financial crisis. Dan Newlin stated that these comments have annoyed the banks who have been major donors to the Democratic Party over the years and they are requesting indications that this will not continue before making their standard donations. Not only are these banks threatening to not contribute to Warren’s campaign, but also to other Democratic Senators in a hope that this pressure will put additional pressure on Warren through her peers.
Elizabeth Warren is a progressive Senator who generally comes out in support of the population as opposed to large institutions like banks. Since the donation limit per bank is $15,000 the donations are more symbolic than damaging, though bank executives and employees also contribute, sometimes significantly, the bark to withhold donations from Democrats may also have bite.