The groups are getting involved in potentially tough races early as they try to tap into bankers’ enthusiasm over the bill that President Donald Trump signed in May that eased post-crisis regulations for the industry. | AP Photo Bankers poised to pour money, ads into contested races

Republicans and Democrats facing competitive midterm races this year are getting an early burst of support from bankers, who are riding high off the passage of a sweeping financial deregulation bill.

The American Bankers Association, which has spent months overhauling its political operations, for the first time is running television ads in support of incumbent lawmakers from both parties who have backed industry-friendly policies.


Another group organized as a super PAC, Friends of Traditional Banking, is calling on its 22,000 members — mostly from red states — to give to the campaign of Sen. Jon Tester (D-Mont.) — the first time it has backed a Democrat.

The groups are getting involved in potentially tough races early as they try to tap into bankers’ enthusiasm over the bill that President Donald Trump signed in May that eased post-crisis regulations for the industry.

They want to convey the message to lawmakers that their support for policies like the banking bill — a bipartisan effort — can be a political asset.

“We want to send that signal to policymakers that working together to help the economy grow is positive and is important and we should build upon that,” American Bankers Association President and CEO Rob Nichols said. “That’s why we’re engaging with such rigor now.”

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The industry's political fortunes are on the upswing after it played defense in Washington in the wake of the 2008 Wall Street meltdown, which prompted sweeping new regulations.

Trump’s election and Republican control of Congress opened the door for a huge show of support for banks in the form of the deregulation bill that the president signed in May — the product of years of negotiations between Republicans and Democrats willing to ease post-crisis rules.

Bankers are now trying to say thank you and keep the positive vibes going across party lines.

“Many believe that the Republicans aren’t going to lose the Senate, but they’re also not going to win 60 seats,” said Friends of Traditional Banking Executive Director Mike Winder, a Republican state representative in Utah whose organization backs two candidates per cycle.

“If we’re going to have any additional regulatory reform, it will have to be bipartisan. Even though many of our members come from red states, we realize that we have to support some key Democrats who are going to support us."

The American Bankers Association, which represents a wide range of small and large banks, is taking a lead in the effort.

The group has been undertaking a major revamp of its political operations since Nichols, a former Treasury Department official, was named the organization's president and CEO in 2015.

Nichols brought on Rob Engstrom, national political director at the U.S. Chamber of Commerce, to serve as the association’s chief political strategist. As part of a restructuring, the group is increasing staff dedicated to political activities, planning to expand its $4 million per cycle political action committee and looking to better mobilize bankers at the grass-roots level.

Most prominently, the association is for the first time devoting new resources to independent expenditures in the form of television ads promoting individual candidates.

It kicked off the campaign in April with ads backing Tester and Rep. Ted Budd (R-N.C.).

Tester was a key player in the bank deregulation bill and is facing a tough reelection in a state Trump won by a wide margin.

Friends of Traditional Banking, the super PAC, backed Tester as well over other Democratic co-sponsors of the banking bill because "our leadership felt that his race was one where we could make the largest difference, and that reg reform would not have happened without him," Winder said.

Budd, a member of the House Financial Services Committee and former gun store owner who also got an ad from the American Bankers Association, went to bat for the industry as it tried to repeal a cap on debit card fees in a major lobbying fight with retailers.

On Thursday, the association announced its next round of ads in support of a pair of House Financial Services Committee Republicans in competitive races, Rep. French Hill (R-Ark.) and Bruce Poliquin (R-Maine). The spending for the ads, like those for Tester and Budd, is in the six figures.

"We think we can make a difference in these races," Nichols said.

The association is planning further ads. And while the first round has been positive, supporting sympathetic lawmakers, the group is prepared to draw more of a contrast between candidates on the ballot in November if necessary.

“There will be more to come this cycle,” Nichols said. “We definitely think we can make a difference and we are making a considerable investment in this exercise because of its importance."

