New York’s financial elite are cautiously eyeing Zohran Mamdani after his recent win in the city’s mayoral election, which saw a remarkable voter turnout. This 34-year-old assemblyman from Queens has often faced skepticism due to his critical stance on the wealthy and his proposal for higher taxes on incomes exceeding $1 million.
In the days leading up to the election, Mamdani made an effort to connect with New York’s business leaders, attending meetings to win their support. Ralph Schlosstein, a prominent figure on Wall Street and former chair of investment bank Evercore, emphasized the need for unity in the city. He praised the high voter turnout, calling it “amazing,” and credited Mamdani for inspiring the electorate.
Yasser Salem, from the independent group OneNYC, is organizing a business advisory council to collaborate with Mamdani as he steps into office. “My phone has been ringing off the hook,” he remarked, highlighting the interest from the business community.
However, doubt lingers among many financiers. Some worry that Mamdani’s election might lead to increased crime rates. One hedge fund manager voiced serious concern about having a self-identified socialist in a city known for its capitalist roots.
Many business leaders, including Bill Ackman and former Mayor Michael Bloomberg, previously backed Mamdani’s main opponent, Andrew Cuomo. Yet post-election, Ackman reached out to the new mayor, offering assistance. “Now you have a big responsibility,” he stated on social media, underscoring the challenges ahead for Mamdani.
As Mamdani prepares to lead, Wall Street’s attitude is shifting from resistance to pragmatism. Robert Steel, a veteran Wall Street executive, pointed out that the real power lies in the appointments Mamdani will make. “There are 30 to 50 people who really run the city,” he noted.
Interestingly, some financiers, like Antonio Weiss, a former U.S. Treasury advisor, are embracing the idea of higher taxes if paired with efficient government spending. Weiss believes this could be used to invest in initiatives, such as childcare, which would help families stay in New York.
In summary, while there’s cautious optimism among some business leaders, deeper divisions remain. Mamdani’s leadership style and economic policies will soon be put to the test in this dynamic city. As the landscape evolves, it’s clear that collaboration will be essential for the new administration’s success.
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