Results are in from NYC’s high-stakes election, with Democratic Socialist Zohran Mamdani set to become mayor of the nation’s largest city. He already beat out challenger Andrew Cuomo in the Democratic primaries, prompting the latter to run on an independent ticket. Republicans also urged votes for Cuomo in the run-up to the election, with GOP candidate Curtis Silva far behind in the polls.
Economic platform: Mamdani has focused on “affordability” and “inequality,” with policies that include a rent freeze, affordable housing, and a $30 minimum wage by 2030. Other proposals involve the creation of subsidized city-owned grocery stores, providing free city bus service and universal childcare. To fund the social initiatives, Mamdani supports increasing corporate taxes and raising the rates paid by high-income individuals.
Notable figures from the financial world in New York City had fought his election, forming PACs and pouring millions of dollars into anti-Mamdani efforts. They warned of risks to capital flight, a deteriorating business and real estate environment, as well as unsustainable fiscal plans, but some now seem ready to work with the new mayor. “@ZohranKMamdani, congrats on the win. Now you have a big responsibility,” Pershing Square’s (OTCPK:PSHZF) Bill Ackman wrote on X. “If I can help NYC, just let me know what I can do.”
Wall Street: As mayor, Mamdani does not have the power to regulate financial institutions or even raise corporate taxes. Those are set at the federal and state level, and will need the backing of legislatures, though he can steer city spending and procurement away from Wall Street interests. Many entrenched players that were against Mamdani will still stick around, though there are parts of Wall Street that have already moved out of NYC, like Elliott Management, Icahn Capital and Ark Invest. COVID accelerated the trend that has only continued due to lower taxes, remote work, and business-friendly atmospheres elsewhere. JPMorgan’s (JPM) headcount in Texas has even surpassed its New York workforce, while the SEC just formally approved the Texas Stock Exchange.
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