Skip to comments.What Cantor's Fall Means to Financial World
Posted on 06/11/2014 1:07:43 AM PDT by nickcarraway
House Majority Leader Eric Cantor canceled a scheduled speech he was to give Wednesday morning before the National Association of Manufacturers, as policymakers scramble to sort through what his stunning political loss means for the financial sector.
Cantor was expected to discuss a host of conservative policy initiatives at NAM's annual summit, but now he will be replaced by Sen. Chris Coons (D-Del.), according to a source familiar with the matter. No explanation was given by the source.
Cantor lost in a primary election Tuesday night to Tea Party challenger David Brat, an economics professor. His last minute speech cancellation signals a challenge establishment Republican policymakers face in rallying congressional support among Tea Partiers and Democrats on a host of financial services. NAM has been actively engaged on a number of financial issues and Cantor served as a key congressional ally.
From reauthorizing the Export-Import Bank, bipartisan immigration reform, to eliminating taxpayer-backed mortgage giants Fannie Mae and Freddie Mac, Cantor was able to flex his political muscle in part because many viewed him as a potential successor to House Speaker John Boehner (R-Ohio).
All of that's out the window now.
Cantor and House Financial Services Committee Chairman Jeb Hensarling (R-Texas), a more Tea Party-oriented Republican, were both rumored to be mulling a run for Speaker if Boehner doesn't seek another term following midterms.
"This definitely strengthens Hensarling's hand. He's a lot closer to being Speaker now," said Mark Calabria, director of financial regulation at the libertarian-leaning Cato Institute, who was "still in a little bit of shock," he explained.
Calabria added: "This ends any talk for awhile that the Tea Party is dead, and definitely puts establishment GOP on notice."
A Republican staffer of a member who works for the House Financial Services committee said that Cantor's loss "endangered the entire leadership structure."
"Now's the best time for Hensarling to take a shot at leadership," the GOP staffer said. "Conservatives will demand their place in leadership and more committee chairmanships."
Republican strategist Ford O'Connell said that Cantor's Speakership ambitions could have made him a bigger target for the Tea Party.
"The fact that Cantor was one step from the Speakers gavel helped put the target more squarely on his back," O'Connell said. "This is upset of the 2014 primary season and an enormous victory for the conservative grassroots. It will certainly serve as a 'come to Jesus' moment for some folks in the GOP with respect to immigration reform."
Still, much of the political world was trying to figure out what Cantor's loss means for policy.
"Cantor was far from moderate, but I don't see how the helps any legislation at all right now," said Gabe Horwitz, economics director of left-leaning think tank Third Way.
Cantor had more centrist and establishment Republicans' back on issues such as working across the political aisle on immigration; to reforming taxpayer-backed mortgage giants Fannie Mae and Freddie Mac; to reauthorizing the Export-Import Bank, which expires at the end of September. Cantor and establishment Republicans argue it's an economic engine, while Tea Partiers say it's an example of "corporate cronyism," and an unneeded relic leftover from FDR's administration.
"This increases chance that Ex-Im will be allowed to expire," Calabria said.
That's because Hensarling vehemently opposes its reauthorization, which expires at the end of September, and many thought he used the position to help distance himself from Cantor to contrast himself if he decided to run for Speaker. Now Ex-Im's fate is even more unclear if there isn't a serious challenger among Republicans to fight back against Hensarling.
This is an epic fall for Cantor," Horwitz said. "It's too soon to tell what the fallout will be. But the civil war within the Republican Party that has been simmering is going to bubble over for who will control once Boehner leaves."
Should Hensarling become Speaker, it would set up a "free-for-all" for his House financial services chairmanship gavel between rising GOP Congressional stars such as Reps. Scott Garrett (R-N.J.), Patrick McHenry (R-N.C.), Randy Neugebaurer (R-Texas) and Ed Royce (R-Calif.), the GOP staffer said.
A Republican senior Senate staffer said: "Washington, D.C. is in a collective state of shock tonight. If Team USA were to beat Brazil in the championship game of the World Cup in the next few weeks, it would come in as the second most shocking victory of the year behind the toppling of House Majority Leader Eric Cantor, in a Republican primary no less."
You are ****cth in heat. .
YOu are not an American.
You are sick as a dog with mange...
Finally, the electorate says “No RINOs, thank you.”
I hope and pray the eGOP is crapping its pants.
The Tea Party, with its terrible agenda of Constitutional constructionalism and freedom for all is not going away.
Way to go, Brat!!! Laura really helped him, I think!!
Republican staffer of a member who works for the House Financial Services committee said that Cantor’s loss “endangered the entire leadership structure.”
Is this a joke? What Republican leadership? Boehner surrendered to Obama! These dudes live in fantasy land.
Translation: "Hey! You can't replace this guy...we spent tons of money buying him off! We didn't send a single cent to this Brat guy!"
This was an open primary and Democratic party operatives instructed the party machine to get out the vote against Cantor. Unless they wanted to remove him from a powerful committee chairmanship it really makes no sense. Or, perhaps they expect his leadership replacement will be even more RINO than he.
It may also be an example of getting what you (Democrats)ask for is not necessarily good.
“This was an open primary and Democratic party operatives instructed the party machine to get out the vote against Cantor.”
Do you have evidence of that? I only ask because, if anything, I would have expected Democrats to SUPPORT Cantor as he was about to ram Amnesty down the throats of the Republicans which would have had two effects:
1) Destroy Republican unity for 2014, by forcing a vicious fight on the issue, with the base staying home in November.
2) Sooner or later (more sooner) flood the country with tens of millions of new Democrats - which would have ended the Republican Party as a credible national force for generations.
So if I were the Democrats, I would have done EVERYTHING POSSIBLE to get Cantor re-elected.
I think what instead happened was that the race was totally written-off by everyone (except Cantor, who had internal polling) and Brat was able to beat him in an fair fight.
Point “3.” from the National Review article.
Yes, I agree that Democrats should have supported Cantor, or at least not campaigned for his ouster. (Supporting the opposition when they are really a secret ally is not wise as it gives his opponents ammo.) But remember, Cantor’s replacement won’t be much of a conservative weapon until he has been there a few years. When a junior like Cruz started making waves his peers beat him back pretty badly. Cruz did happen to catch on with the public but he’s bucking his own party because he got above his station.
“Way to go, Brat!!! Laura really helped him, I think!!”
The fact that VA is an open primary state, and the demoncraps had nobody on the ballot also helped him.
The RATS picked their candidate by committee before the primary, so all the RATS could crossover to vote for Brat.
Brat should still win the general election, unless a Libtardian runs and splits the vote.
Coons replacing Cantor and talking to NAM Ha! That’s like Medea Benjamin replacing Allan West at the VFW.
NAM should ask Coons how the auto manufacturers are doing in DE. Real well - one plant mired in controversy because plans to build a power plant is opposed by residents. Of course, politicians ignored the people. The other plant has been idle for almost six years. Good job there, Comrade Coons.
I’ve been disappointed in Cantor for a long time. What really turned me sour on him this time was his nasty over-the-top attacks on Brat. Uncalled for, and an obvious attempt divert attention from his RINO record, especially on amnesty and immigration.
Yea, I just saw it myself too. Dems are actually REALLY SMART when it comes to campaigning and messing with Republicans (how else do you get Obama elected twice?).
But man, did they blow it this time. Maybe it was a case of thinking that they only wanted to put a little scare into Cantor - after all, he was unstoppable. LOL!!!!
I feel bad for Cantor. Now he’s going to have to take a seven figure job with whatever lobbying group he’s been shilling for all of these years.
Cantor should resign as Majority *Leader*, immediately.
-——Cantor’s loss “endangered the entire leadership structure.”-—
Another way to look at is that the loss pretty well destroyed the structure. There is a completely new ball game
Re: EXIM bank...... it must be allowed to continue. The cost is not great, the benefits tremendous. The jobs in companies that rely on trade guarantees, not subsidies mind you, keep our economy humming. Academic Puritanism is not beneficial in the case of EXIM
Anybody know anything about this guy Hensarling? Is he really a conservative?