Wednesday, November 7, 2012

Elections have consequences: Donors and hedgers.

Hedgers who bet big on Romney, combined with those who bet big on Obama shook markets today, as they collected their losses / earnings from the markets.  Romney's largest donors truly took a beating.

In the chart below, those in red lost more (as a percentage) than their peers in their respective industry.  Of course, the first thing you notice is, that most of them were in financials.

Now of course, even Obama's donors lost paper value on their stocks, (Wells Fargo gave slightly less to Obama than Romney), but not on the scale of Romney's contributors.

And the reason why those financials lost big?  Now they won't be able to repeal Dodd-Frank.  Equally important, Elizabeth Warren -- the person they blocked from becoming the head of the newly created Consumers Financial Protection Bureau -- is now a senator, ready to take on the banking industry from the Capitol Hill.


Top Romney Contributor$$ ContributedStock price day after
Goldman Sachs$994139-6.55%
Bank of America$921839-7.14%
Morgan Stanley$827255-8.58%
JPMorgan Chase $792147-5.6%
Credit Suisse Group$618941-4.13%
Wells Fargo$598379-3.49%
Deloitte LLP$554552n/a
Kirkland and Ellis$496722n/a
Citigroup Inc$465063-6.29%
Barclays$428250-3%
PricewaterhouseCoopers$421085n/a
UBS AG$400390-2.23%
HIG Capital$385500n/a
Blackstone Group$360225-2.31%
Ernst & Young$293067n/a
EMC Corp$288440-3.12%
General Electric$287495-2.13%
Elliott Management$281925n/a
Bain Capital$279220n/a
Rothman Institute$263700n/a

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