President Biden won’t be seeking reelection, but he’s already raised close to $100 million to help his cause. Here’s what happens to his campaign fund.
Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Volatility is expected to be the name of the game with the Nasdaq and the S&P 500 coming off their worst weeks since April. Investors will also have a lot of earnings to consider this week with one-third of the S&P 500 reporting results. You can also throw politics in the mix, with investors trying to figure out what President Biden’s exit from the White House race could mean for the future.
Sticking with the intersection of money and politics – there’s a $96 million question hanging in the air…what happens to the bundle President Biden’s re-election campaign has yet to spend, now that he’s out of the race?
Since Vice President Kamala Harris was already on the ticket, she has access to that money. In addition, her campaign already raised more than $50 million in the hours immediately after President Biden backed her to take his place in the race. But Harris doesn’t automatically replace her boss, which means another contender could step in to challenge Harris. If they do, they won’t have access to any of that cash, which essentially means they’ll be starting from zero. There are some exceptions of course, if a member of the Senate or the House takes over for Biden, leftover money from their previous campaigns can be transferred to the presidential campaign.
There’s also the role of the Democratic National Committee and state parties, which have about $144 million in their coffers. The DNC and the candidate can coordinate messaging and ad buying across various states, but that’s not the case with another source of money. Deep-pocketed outside spending groups like super political action committees are prohibited from coordinating ad buys with the campaign.
All these rules mean Democrats have to scramble. The Trump campaign and the Republican National Committee already have a lead with $285 million in the bank as of the end of June, that’s $45 more than the Democrats.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I”m Conway Gittens with TheStreet.
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