Wall Street Hopes Kamala Harris Will Roll Back Biden’s Antitrust Crackdown
With the November presidential election looming, Wall Street executives are eagerly awaiting a potential Kamala Harris presidency as a potential signal for a more relaxed approach to antitrust regulation. While Harris has yet to explicitly clarify her stance on antitrust enforcement, her past actions and potential political maneuvering suggest she might be more amenable to the corporate world than her predecessor, President Joe Biden. This shift could significantly impact the future of mergers and acquisitions, tech regulation, and large corporations’ regulatory landscape.
Key Takeaways:
- Wall Street is hopeful that Harris will adopt a more relaxed approach to antitrust regulation, potentially reversing the Biden administration’s "big is bad" stance.
- Harris’s past record as California Attorney General suggests she supports a vigorous antitrust enforcement, but her close ties to Silicon Valley could influence her future approach.
- The potential for change in the FTC Chair, currently occupied by Lina Khan, has sparked hope among corporate executives even if it remains a long shot.
Harris before the White House: A Look at Her Record
Harris’s time as California’s Attorney General offers some clues about her antitrust philosophy. While she did not personally interact with Bill Baer, the Department of Justice’s antitrust chief during her tenure, Baer commends her antitrust team’s "talent, experience, and effectiveness."
Harris’s office took several actions to break up corporate power in the healthcare sector. Notably, she joined a federal lawsuit to block a merger between Anthem and Cigna and sued against pharmaceutical pricing practices contributing to the opioid addiction crisis.
However, her connection to Silicon Valley raises concerns regarding her potential favoritism towards tech giants. Some believe that a Harris White House would provide a more comfortable environment for tech CEOs, facilitating their access to the administration and potentially influencing policy decisions.
Wall Street’s Wish List: A Call for Change at the FTC
Two prominent Democratic donors, IAC Chair Barry Diller and LinkedIn co-founder Reid Hoffman, have publicly called for Harris to replace FTC Chair Lina Khan, a key figure in Biden’s antitrust enforcement expansion. While presidents lack the power to fire FTC chairs, this demand signals corporate America’s optimism about influencing Harris’s antitrust agenda.
The FTC, however, maintains its commitment to its current agenda, claiming support from both Biden and Harris. Khan’s term is ending in September, creating an opportunity for a new appointment if Harris takes office, a prospect that excites corporate executives.
The Political Landscape: Navigating the Fine Line
The future of Harris’s antitrust policy will depend on a delicate balancing act between various political forces. While Biden’s anti-corporate stance resonated with some voters, it also solidified his relationship with progressive figures like Sen. Elizabeth Warren and Sen. Bernie Sanders, who were instrumental in pushing through his legislative agenda.
The question remains whether Harris will continue this aggressive approach or adopt a more moderate stance to appease corporate interests. While some observe her past record as indicative of continued antitrust enforcement, others remain cautiously optimistic, believing her ties to industry could lead to a more favorable environment for corporations.
Navigating Uncertainty: An Unanswered Question
Harris’s silence on the issue of antitrust enforcement adds to the uncertainty surrounding her potential administration’s approach. While her California roots and ties to Silicon Valley suggest potential for leniency, her actions as Attorney General indicate a willingness to hold corporations accountable.
The upcoming election will be a crucial turning point in determining the future of antitrust policy in the United States. Whether Harris embraces a more relaxed approach to antitrust regulations, balancing the aspirations of Wall Street with the demands of progressive factions remains a question for the future.
