Key Takeaways
- • Billionaire Michael Novogratz, founder and CEO of Galaxy Digital and major Democratic donor, stated that Senator Elizabeth Warren could win the presidency because she has "softened" her rhetoric on wealthy individuals, moving away from positions like "all billionaires cheat."
- • Warren's polling position has strengthened to 21.8% in Real Clear Politics national average (as of October 24, 2019), trailing only Vice President Joe Biden at 27.2%, with Bernie Sanders at 17.3% and Pete Buttigieg at 7%.
- • Novogratz has not backed Warren despite his comments; campaign records show he donated the maximum $2,800 to Mayor Pete Buttigieg on September 27 and previously to Senator Cory Booker, indicating divided support among major Democratic donors.
- • Wall Street Democratic donors are expressing concern about a potential Warren nomination, with some considering support for President Donald Trump as an alternative, signaling tension between progressive economic policies and wealthy donor preferences.
- • Novogratz argued that fears about tax increases under Democratic administrations are overstated, citing that wealthy individuals "got richer" under President Barack Obama despite higher tax rates, suggesting wealth accumulation can withstand higher taxation.
Summary
Michael Novogratz, a prominent billionaire investor and former hedge fund manager, indicated in comments to CNBC on October 24 that Senator Elizabeth Warren has improved her electoral viability by moderating her anti-wealth messaging. Novogratz, who currently leads cryptocurrency merchant bank Galaxy Digital, stated that Warren "could win the election because she's smart, she's witty and she seems to be the best candidate on the stump," while noting that her recent language has become "a lot softer" compared to earlier statements characterizing billionaires as uniformly dishonest.
Warren's standing in the 2020 Democratic primary race reflects her growing competitiveness. According to Real Clear Politics polling averages as of mid-October, she held 21.8% support nationally, positioning her as the second-leading candidate behind Vice President Biden's 27.2%, ahead of Senator Bernie Sanders at 17.3%. This polling strength comes despite Novogratz's assertion that she remains moderately positioned within the Democratic field.
However, Novogratz's comments reveal fractures within Democratic donor circles. While he acknowledged Warren's electability argument, campaign donation records show his maximum $2,800 contribution went to Mayor Pete Buttigieg on September 27, and he had previously donated $2,800 to Senator Cory Booker. Novogratz explicitly stated that Warren is not his top choice, indicating preference for a centrist nominee. His remarks come amid broader concern among Wall Street-aligned Democratic donors who view Warren's economic platform with apprehension, with some reportedly considering support for President Trump as a fallback option.
Novogratz used his CNBC platform to argue that concerns about tax policy under Democratic administrations are exaggerated. He asserted that wealthy individuals did not experience net-worth declines during the Obama administration and that "the rich got richer" despite higher taxation, suggesting that progressive tax policies need not be economically catastrophic for high-net-worth individuals. This framing appears designed to reduce anxiety among potential Democratic donors regarding Warren's proposed tax structures.
Warren's standing in the 2020 Democratic primary race reflects her growing competitiveness. According to Real Clear Politics polling averages as of mid-October, she held 21.8% support nationally, positioning her as the second-leading candidate behind Vice President Biden's 27.2%, ahead of Senator Bernie Sanders at 17.3%. This polling strength comes despite Novogratz's assertion that she remains moderately positioned within the Democratic field.
However, Novogratz's comments reveal fractures within Democratic donor circles. While he acknowledged Warren's electability argument, campaign donation records show his maximum $2,800 contribution went to Mayor Pete Buttigieg on September 27, and he had previously donated $2,800 to Senator Cory Booker. Novogratz explicitly stated that Warren is not his top choice, indicating preference for a centrist nominee. His remarks come amid broader concern among Wall Street-aligned Democratic donors who view Warren's economic platform with apprehension, with some reportedly considering support for President Trump as a fallback option.
Novogratz used his CNBC platform to argue that concerns about tax policy under Democratic administrations are exaggerated. He asserted that wealthy individuals did not experience net-worth declines during the Obama administration and that "the rich got richer" despite higher taxation, suggesting that progressive tax policies need not be economically catastrophic for high-net-worth individuals. This framing appears designed to reduce anxiety among potential Democratic donors regarding Warren's proposed tax structures.
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