Mamdani’s NYC victory leaves Wall Street ‘alarmed’ and ‘depressed’

To say that Wall Street is not a fan of Zohran Mamdani would be an understatement.

In fact, high -level investors and Big Apple business leaders are in arms about the astonishing victory of the primary democratic socialist to win the Democratic appointment to serve as next mayor of New York. The potential victory for the assembly of three mandates in the November general elections could bring what the street hates the most – tax increases and stricter regulations threatening the interests of businesses and investments.

Philippe Laffont, founder of Hedge Fund Cotue Management, told CNBC that a Mamdani victory could trigger another exodus of wealthy investors. From the pandemic, a wave of rich residents and institutional companies has fled the largest city in the country for low tax states such as Florida and Texas.

“Some people go, for sure, to leave,” said Laffont on CNBC “Squawk box“Wednesday after the former New York Governor Andrew Cuomo conceded democratic appointment.” It is not yet quite done. There is still an election. Maybe Cuomo will come back as an independent. “”

The emphasis put by Mamdani on socialism and the redistribution of wealth goes against the preference of Wall Street for frantic capitalism and policies that support growth, such as deregulation and low taxes. The 33-year-old man supported the taxation of ultra-rich financial transactions and passive income as dividends. He also approved a tax on wealth at the state level and increased marginal tax rates on high wages.

The newspaper of the hedge fund Bill Ackman said he had awakened “a little depressed” on Wednesday by Mamdani’s victory. Square Pershing said he was now looking at the logistics of another candidate, not to himself, to run.

Lawrence Summers, the former secretary of the Treasury and president of the Harvard University, also expressed the appointment of his Mamdani disgust.

“I am deeply alarmed by the future of [Democratic National Committee] And the country, by the anointing yesterday in New York of a candidate who did not disowns a slogan “ globalizing the slogan intifada ” and advocated the economic policies Trotskyite, “said Summers in an article on X.

“Suicide by the Mayor”

Part of the stock market has already felt the pain of the prospect of a New York led by Mamdani. Actions of the New York Regional Bank FlagWith exhibition at the New York real estate market, flowed almost 4% on Wednesday. Real estate actions focused on the desk has also suffered, with SL GREEN REALTY more than 6% and VORNADO REALTY TRUST down almost 7%.

Mamdani pleads for universal control of rents, and the mayor of New York has the power to appoint representatives to the regulatory council which oversees the apartments controlled by rent and stabilized. A break on rent increases would harm multifamilial rental properties.

Roughly A million New York apartments are stabilized in rent But only about 20,000 are still controlled by rent.

“It seems that NYC chooses to commit suicide by the mayor,” said Jim Bianco, president and macro-strarte at Bianco Research, in an article on X Tuesday evening.

“Terror is the feeling”

Mamdani’s solution to most problems is based on an ideological commitment to expenses financed by taxpayers, and this leaves the business world concerned, said Kathryn Wylde, president of the partnership for New York, a non -profit CEO group founded by David Rockefeller in 1979.

“Terror is the feeling,” Wylde said on CNBC Tuesday morning as Voters went to the polls, although she noted that “there is a lot of positive in New York. But that could quickly change if we lose confidence in the mayor”.

Wylde said the government of the state, led by Governor Kathy Hochul, is expected to prevent the city from a “disaster” scenario. It recognized concerns about the high cost of living and business, but said that the increase in taxes was not the solution.

Some of the strongest supporters of former Cuomo Governor came from the Upper East Side in Manhattan, the Maison de Most of the highest salaries in New York and the commercial titans. The former secretary of the Housing and Urban Development Department of the Clinton administration received more than seven votes out of 10 out of 10 in several of the districts in this district, according to Associated Press Data from Wednesday.

In 2013, Bill de Blasio’s victory also sparked anxiety among the financial elite, but he was able to alleviate fears by directly meeting business leaders before implementing radical reforms.

“We had the mayor Deblasio for eight years. New York is really strong. I hope the same thing will happen,” said Laffont.