Distance between Wall Street and Republican leadership? Fat chance. Cantor's out, Wall Street's still in

Distance between Wall Street and Republican leadership? Fat chance.

Listen to the chattering class and Eric Cantor’s move to New York was a major blow to the Wall Street-GOP alliance.


But already banks are identifying and courting new allies at the top of the party. And they will keep giving some of the biggest money to Republican candidates and party committees.

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Add in that banks have long cultivated key friendships with Democrats, too, and the same old picture comes together: Wall Street’s position in Washington hasn’t changed one iota, even if one of its strongest ties might have just broken and publicly candidates from both parties love to dump on it on the trail.

“Eric had a depth of relationships that won’t be easily duplicated,” said Rep. Patrick McHenry (R-N.C.), the recently appointed chief deputy whip. “However, current leadership has existing relationships and are actively cultivating new ones across business and industry.”

For instance, Speaker John Boehner counts lobbyists who represent banks among his kitchen cabinet of outside advisers. The Ohio Republican is also the top House recipient of campaign cash from the financial sector, taking in $2.6 million, according to the Center for Responsive Politics.

Not to be outdone, House Majority Leader Kevin McCarthy, regularly courts the Bay Area private equity set.

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Republican officials, including National Republican Congressional Committee Chairman Greg Walden, regularly make the trek up to the Big Apple to raise funds for the party committee.

Even newly crowned House Majority Whip Steve Scalise began working to strengthen his ties to the industry before he moved into a leadership slot. The Louisiana Republican held a D.C. roundtable with banks big and small this summer as head of the conservative Republican Study Committee. His office said he’ll continue to do outreach to the financial services industry going forward.

“As RSC chair, Rep. Scalise held roundtables with industry representatives from many sectors of the economy, all affected by President Obama’s job-killing policies,” said Scalise spokeswoman Moira Bagley Smith. “As whip, he will continue to engage with these groups to find solutions to counter the administration’s assault on American business and workers.”

Republicans expect Cantor will use his perch on Wall Street to help his colleagues make inroads in New York. Cantor joined Wall Street bank Moelis & Co. earlier this month entering the financial services industry for the first time.

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So far, he has kept a low profile on the political front as he navigates working at the firm and using his international finance relationships he made during his tenure in Congress to help make his company money. Sources close to Cantor say the Virginia Republican’s political operation is still going through a transition period.

Cantor’s exit hasn’t affected the House’s policy agenda when it comes to the financial services industry. The Export-Import Bank, a priority of Wall Street, was expected to be extended Wednesday. Dodd-Frank has been altered to help large financial institutions. And there’s no worry Cantor’s departure will shift the trajectory of the industry anytime soon.

Rep. Randy Neugebauer said he doesn’t “buy” that without Cantor the financial services industry won’t have access on the Hill.

“Every member of Congress has people from the financial sector in their district and so you know we have people — community bankers, large bankers, people in this type of business,” the Texas Republican said. “I meet with those groups on a regular basis and listen to them.”

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In short, the relationship is alive and well.

“It’s totally overblown,” said one veteran financial services lobbyist of how much Cantor’s departure will affect the industry.

Another banking lobbyist said while Cantor was “a key ally and gets the industry and issues better than most, but that’s not to suggest others are not supportive.”

In large part, the industry privately says it is going to look for rank-and-file House Republicans to serve as a backstop to House Financial Services Chairman Jeb Hensarling, who has led the effort to wind down the Export-Import Bank. Financial services lobbyists also have a key stake in any corporate inversions legislation and tax reform. Whether they meant to or not, GOP leadership has tempered Hensarling. It pushed through an extension of the Export-Import Bank’s charter until June 2015, removing the threat that the government-backed financial institution will close at the end of September.

But the industry wants more from Congress. It is looking high and low for new allies to push its issues. In particular, the investment community will need a new Sherpa on key issues like carried interest. Cantor served as a strong backstop against efforts by the Obama administration during the 2011 debt ceiling negotiations in which it wanted to make changes to the Tax Code that would have affected hedge funds and private equity firms, raising billions of dollars in revenue.

“Wall Street is just looking for a new face,” said one Republican lawmaker.

Several financial services lobbyists pointed to McHenry as one of their key allies that could assume Cantor’s role for the industry. The North Carolina Republican has the same pedigree in Congress as Cantor — serving on the Financial Services Committee and now as chief deputy whip. McHenry is also familiar with many of the industry’s needs at a state level since North Carolina is host to a large number of banking interests, including Bank of America, BB&T and others. Rep. Steve Stivers of Ohio, one of the vice chairs of the NRCC’s finance team, who is also on the Financial Services Committee, is another lawmaker bank lobbyists are hoping to cozy up to. Stivers has a background in the industry. Before coming to Congress, he worked as a lobbyist for Bank One and as a licensed trader for the Ohio Co.

“Given the pace of dynamic change in the financial services industry, it’s a great opportunity for members to set up and become leaders,” said Electronic Transactions Association’s Scott Talbott.