July 18 (Bloomberg) -- Wall Street donors are demonstrating their disenchantment with President George W. Bush and his policies on Iraq and the economy by giving more to Democratic presidential hopefuls Barack Obama and Hillary Clinton than to Republican candidates.

Obama, an Illinois senator, is leading among employees of the top 10 investment banks, raising at least $739,579 in the second quarter, Federal Election Commission filings show. Clinton, a New York senator whose constituency includes Wall Street, followed with $424,545. By comparison, the top Republican recipients, John McCain and Rudy Giuliani, each received a little more than $330,000.

Overall, employees of the banks gave more than $1.4 million to Democrats and slightly more than $900,000 to Republicans. These Democratic donors are focusing on issues such as the budget and the growing negative perception of the U.S. overseas. JPMorgan Chase & Co. Chief Financial Officer Michael Cavanagh, an Obama supporter, said he sees an opportunity for a ``fresh look at things,'' while Robert Wolf, chairman of UBS Americas, said he is concerned about the Iraq war and partisan divides.

`Outside' Issues

``Plenty of people on Wall Street look at many issues outside of just from a business acumen,'' said Wolf, 45, who is raising money for Obama. ``He was very clear in 2002 that he was against the war, and I think that differentiates him.''

Clinton, 59, counts Morgan Stanley Chief Executive Officer John Mack among her supporters. Mack, 62, raised money for Clinton at the company's New York headquarters this week. Mack, who was one of Bush's biggest fund-raisers in 2004, declined to comment.

Clinton received at least $47,850 in donations from Morgan Stanley employees, while Obama got $45,485.

Heidi Miller, JP Morgan's chief executive of treasury and security services, said she and other Wall Street executives are impressed with the way Clinton has responded to the industry as a senator. ``She has a tremendous amount of experience in government, in the state, in managing through issues,'' said Miller, 54, a Clinton donor.

Employees at the top hedge funds and private-equity firms, whose tax rates are under assault from lawmakers including Obama and Clinton, didn't give nearly as much to White House hopefuls and are largely hedging their bets, FEC filings show.

Hedge-Fund Tilt

The top 10 hedge funds, excluding investment banks that also have funds, tilted toward Democrats, giving the three leading candidates a combined $62,211, compared with $50,750 for the three Republican leaders. The employees of the top 10 private-equity firms leaned toward Republicans, giving a combined $77,700, compared with $68,690 for the top Democrats.

Executives at New York-based private-equity firm Blackstone Group LP donated a combined $30,100 to McCain, the most of any candidate. Clinton got $7,200 and Obama got $4,600.

The figures are based on employers listed by donors; in some cases, the names are missing or incomplete.

Once the bastion of Republicans, Wall Street has been donating more to the Democratic Party in recent years, thanks in part to the fund-raising prowess of both Clinton and a fellow New York lawmaker, Chuck Schumer, who leads the Senate Democrats' campaign efforts. Democrats also benefited from concerns about the war, ballooning budgets and scandals.

`You Get Fired'

``When a party has been in power, both at the presidency, and the Senate and House for years and failed, on the Street you get fired,'' said Mark Gallogly, 50, an Obama fund-raiser and policy adviser who is also founder of the New York-based buyout firm Centerbridge Capital Partners LP. ``Accountability and the need for change is why Wall Street is supporting Democrats,'' said Gallogly, a former executive at Blackstone.

Obama, 45, is drawing a new generation of executives who say his campaign is more open to fresh voices and ideas than Clinton's, which relies on a longtime inner circle of advisers. Obama's top fund-raisers include James Rubin, 39, a partner with One Equity Partners, JP Morgan's $5 billion private-equity fund, and the son of former President Bill Clinton's Treasury secretary, Robert Rubin.

``There's a little bit more of an opportunity to have an impact on the Obama campaign and his policies,'' Rubin said.

While Wolf has donated to Democrats in the past, he said he is now more politically active than ever before. Employees of his company, Zurich-based UBS AG, are following his lead: they donated at least $52,380 to Obama in the second quarter, compared with $49,050 to Clinton and $22,970 to former Massachusetts Governor Mitt Romney, the top Republican recipient.

Double Dippers

Some Wall Street heavyweights are giving to both Obama and Clinton. Billionaire Warren Buffett, 76, held a $1 million New York fund-raiser for Clinton in June and plans to hold one for Obama as well. Lehman Brothers Holdings Inc. Chairman Richard Fuld donated $2,300 to each in the second quarter. Lehman employees favored Obama, donating at least $174,560 to his campaign, compared with $36,400 for Clinton. Fuld, 61, declined to comment.

Investment-bank employees also donated $43,404 to former Democratic Senator John Edwards of North Carolina, who is in third place in national polls.

Clinton got her biggest Wall Street take in the second quarter from New York-based Goldman Sachs Group Inc., whose employees donated at least $61,850 to her campaign. Obama got even more from Goldman executives -- at least $138,723.

Obama also took in $133,505 from JPMorgan executives, compared with $39,900 for Clinton and $34,550 for the bank's biggest Republican recipient, Arizona Senator McCain, 70.

Concern About Bush Policies

``The investment banking community has supported Democrats as well as Republicans for some time now,'' said Fred Wertheimer, the president of the Washington-based advocacy group Democracy 21. This year, the concern about Bush's policies is exacerbating the trend, he said. ``You look at the total amounts being raised by Democratic presidential candidates versus the Republican president candidates and it's telling its own story,'' he said.

On the Republican side, McCain received $334,585 from employees of the top 10 investment banks, while former New York Mayor Giuliani, 63, got $330,450 and Romney, 60, took in $220,950.

Romney, who previously ran the Boston-based investment firm Bain Capital LLC, received $79,400 in the first quarter from his ex-colleagues, many giving the maximum. In the second quarter, Obama bested him in Bain Capital donations -- taking in $20,700 compared with $9,700 for Romney.

Obama is ``not burdened by as much of a legacy of the way things have been done before,'' said JPMorgan's Cavanagh, 41. ``A fresh look at things is not a bad thing.''

To contact the reporters on this story: Kristin Jensen in Washington at kjensen@bloomberg.net; Julianna Goldman in Washington at jgoldman6@bloomberg.net

Last Updated: July 18, 2007 00:15 EDT