When he finishes bashing George Bush and lambasting Democratic rivals, Presidential candidate Bill Clinton often goes after another favorite target: Wall Street. "It's time to end the greed that consumed Wall Street and ruined our S&Ls in the last decade," he says.
Despite the rhetoric, Clinton has been surprisingly successful at courting Wall Street's big shots. One out of every four dollars he has raised comes from New York, a lot of it from Wall Streeters. That's $2 million of his total $8.5 million take. And after his Connecticut primary defeat by former California Governor Jerry Brown, Clinton is counting on Street money to enable him to win big in New York's Apr. 7 primary. Even before the New Hampshire primary, the Arkansas governor netted $623,000 from a Feb. 10 fund-raiser at the Sheraton New York Hotel, a record amount for a Democratic candidate at that early date. "Being able to raise money in New York has been instrumental in taking us from New Hampshire to this point," says Paul Carey, a Clinton finance director.
How did Clinton pull it off? The answer lies in his close ties to the probusiness, moderate wing of the Democratic party, as well as his and his wife's lifelong skill in collecting well-connected friends. Despite his attempt to portray himself as an outsider, Clinton has financed his campaign by being the consummate insider.
The architect of Clinton's New York fund-raising is Kenneth D. Brody, a 48-year-old limited partner at Goldman, Sachs & Co. Brody is unfazed by Clinton's criticism of 1980s Wall Street. "Most people on Wall Street would agree," he says. "That was not Wall Street functioning properly." Brody helped raise $40,000 from Goldman partners alone. For the February event, he helped recruit 28 co-chairs, each of whom agreed to raise $25,000 (table). "If I had a Ken Brody working for me in every state, I'd be like the Maytag man with nothing to do," says Rahm I. Emanuel, who heads Clinton's nationwide fund-raising.
Brody had a lot to work with. Some of Clinton's school chums prospered on Wall Street. Roger Altman, a fellow Georgetown University alumnus and now a Blackstone Group vice-chairman, is a major Clinton fund-raiser. On Jan. 20, Altman, Brody, and Roy L. Furman, chief executive of the brokerage firm Furman Selz, hosted a series of small meetings with Clinton at Blackstone's offices. Attendees included Theodore Ammon, a Kohlberg Kravis Roberts & Co. partner, Michael Bloomberg, president of Bloomberg Financial Markets, and Peter Tufo, partner at Lazard Freres & Co. All became fund-raisers.
Hillary Clinton, a Wellesley and Yale Law School grad, has her own old-girl network. Wall Street lawyer Susan Thomases, a close friend of the Clintons and a former top aide to Senator Bill Bradley (D-N.J.), held a reception for Hillary attended by some 300 female civic, legal, and financial leaders.
MONEY FROM HOME. Not all of Clinton's financial backers work on Wall Street. A key supporter is Warren A. Stephens, CEO of Little Rock-based Stephens Inc., a private investment bank. Many Stephens family members and employees of Stephens-family-owned properties such as Arkansas Oklahoma Gas Co. and Worthen Banking Corp. contributed the $1,000 maximum and together gave about some $50,000.
Goldman Sachs also has ties to Clinton's home state. The firm underwrote a $27 million bond issue for an Arkansas county in 1991 and a $160 million issue in 1988 for a state authority. Goldman's political action committee supported Clinton's 1990 gubernatorial race. The firm is also a lead bond underwriter for Little Rock-based Wal-Mart Stores Inc., on whose board Hillary sits.
Despite his fund-raising success, Clinton faces money problems. His campaign has borrowed $1.4 million and still has $400,000 in campaign bills. Matching funds will cover that, but the check won't arrive until April. Good thing Clinton has six fund-raisers in New York in the next two weeks. To keep Brown at bay, he'll need more than a little help from his friends on Wall Street.
FRIENDS ON WALL STREET In addition to personal $1,000 contributions, the legal limit, Clinton backers have enlisted other givers: Money raised ROGER ALTMAN Blackstone Group $75,000 ROY FURMAN Furman Selz 25,000 ARTHUR LIMAN Paul, Weiss 25,000 ALAN PATRICOF Patricof & Co. Ventures 25,000 ROBERT RUBIN Goldman, Sachs & Co. 25,000 STANLEY SHUMAN Allen & Co. 25,000 MICHAEL STEINHARDT Steinhardt Partners 25,000 BRUCE WASSERSTEIN Wasserstein Perella & Co. 25,000 DATA: BW