Source: Wall Street News
Author: Long Yue

Trump's victory was a foregone conclusion. Wall Street business leaders, including those who opposed Trump in the past, are flocking to “Trump 2.0” to prepare for possible tax cuts and deregulation policies.

According to the Wall Street Journal on November 8, Gary Cohn's phone has been ringing continuously since the election. As the formation of Trump's new cabinet begins, the former president of Goldman Sachs and Trump's first term economic adviser became prominent figures on Wall Street. As an “informal contact” between presidential circles and Wall Street, Cohn may reveal new government policy trends and appointments to key cabinet positions.

People familiar with the matter revealed that compared to 2016, more business leaders have shown interest in the positions of Deputy Secretary and Assistant Secretary of the White House this year. Howard Lutnick, CEO of the financial company Cantor Fitzgerald, also became a “headhunter” for the Trump team. He recently collaborated with$Apollo Global Management (APO.US)$The company's CEO and other heavyweights communicated to help Trump select key positions.

Wall Street executives, regardless of their attitude towards Trump in the past, are actively moving closer to Trump. They have expressed their support for Trump. Some are exploring policy trends, some are preparing to apply for a job in the White House, and some are willing to donate to the Trump team.

US stock investors also showed strong enthusiasm for the “Trump deal,” and the US stock index reached new highs this week. These all reflect the financial community's expectations for tax cuts, deregulation, and economic expansion.

Flocking to “Trump 2.0,” from dislike to staunch supporter

$Tesla (TSLA.US)$People in the financial community, such as CEO Musk and hedge fund manager Scott Bessent, are staunch supporters of Trump's current campaign.

At the same time, before the election, many top financiers also expressed support for Trump, trying to stand up early before the election results come out to avoid retaliation from Trump — Trump is famous for punishing those who offended him or betrayed him.

Although many people in the financial community backed Trump ahead of time, some financial bosses, such as Paul Singer of Elliott Investment Management and Stephen Schwarzman of Blackstone Group, hesitated for a long time about whether to support Trump.

Singer also “turned fan” of Trump after some struggles, donating 5 million dollars to Trump's Super Political Action Committee (Super PAC). Singer has supported US Senator Marco Rubio in the past, and his partner raised funds for former South Carolina Governor Nikki Haley. Another top M&A banker who usually supports the Democratic Party is disappointed with the election results, but his corporate clients are excited about Trump's low corporate tax rate policy.

Now some Wall Streeters who had reservations about Trump or contributed less to his campaign have begun to give generously and are willing to provide financial support for the upcoming presidential inauguration.

Wall Street executives revealed that they support Trump not only because of career needs, but also because of the Democratic Party's position on social issues, such as transgender issues, which gradually push them to the right. This shift is particularly evident in investor Bill Ackman, who has gone from being a supporter of the Democratic Party to a staunch supporter of Trump.

Major US banks are also beginning to embrace the benefits of deregulation, after all, their CEOs have been lobbying for such reforms for years. $JPMorgan (JPM.US)$ CEO Jamie Dimon and $Goldman Sachs (GS.US)$ CEO David Solomon has publicly congratulated Trump on winning the election and said the new administration's policies will have a significant impact on banking business.

However, Wall Streeters are not without their concerns about Trump's support. While they expect tax breaks and reduced regulation, they are also concerned that Trump's policies may reignite inflation and cause the economy to slow down. Some people are worried about whether Trump will implement some extreme policies, especially the high tariff policy.

Editor/Jeffy