Wall Street scrambles as socialist Zohran Mamdani wins NYC mayoral primary

Wall Street woke up Wednesday to what many in its ranks are calling their worst political nightmare: a self-proclaimed socialist is now poised to become the next mayor of New York City. Zohran Mamdani, a Democratic socialist and state assemblyman from Queens, stunned the financial and real estate elite by defeating former Governor Andrew Cuomo in the city’s Democratic primary.

The upset—considered unthinkable just weeks ago—sent shockwaves through Midtown offices and downtown trading floors. Hedge fund managers, venture capitalists, and investment bankers are now confronting the possibility that a mayor hostile to their interests could soon be running the country’s financial capital, the Wall Street Journal reported.

Donors regroup and plot a counteroffensive

The immediate response was panic, followed by strategy calls. Several prominent financiers, including allies of Cuomo and Mayor Eric Adams, began mobilizing within hours of Mamdani’s victory. According to sources familiar with the discussions, a group of hedge fund executives and real estate magnates are looking to raise up to $20 million to back independent or alternative candidates who could derail Mamdani’s general election bid.

There is also behind-the-scenes manoeuvring to keep Cuomo from launching a third-party comeback and even efforts to persuade Republican nominee Curtis Sliwa to step aside—possibly through a Trump administration appointment.

“It’s officially hot commie summer,” hedge fund mogul Dan Loeb said on X, capturing the frustration and disbelief circulating among the city’s corporate power players.

Policy proposals raise alarm bells in finance circles

The source of Wall Street’s angst lies in Mamdani’s unapologetically progressive agenda: higher taxes on millionaires, a $70 billion public housing initiative, free buses, rent freezes, and publicly operated grocery stores. To financiers, this platform sounds less like reform and more like a declaration of class war.

“This is not just bad policy—it’s economic sabotage,” said Anthony Pompliano, head of Professional Capital Management. “If implemented, this agenda will drive out capital, crush investment, and punish success.”

Irony and unease: tech workers quietly backed Mamdani

Adding to the elite’s unease is the irony that Mamdani’s small-dollar donations reportedly included contributions from employees at major financial institutions—including Goldman Sachs software engineers. While Cuomo leaned heavily on support from billionaires like Bill Ackman, Michael Bloomberg, and Loeb, Mamdani built a grassroots coalition that included younger professionals disillusioned with the city’s status quo.

“Cuomo had the money, but Mamdani had the movement,” said one senior JPMorgan strategist. “That’s what scares people.”

Talk of an exodus—and déjà vu for some

For some fund managers and executives, Mamdani’s win is prompting fresh talk of relocating. Real estate developers, private equity leaders, and hedge fund founders say they are reconsidering their future in New York if the November election swings left.

“I’m depressed and sad,” said Ricky Sandler of Eminence Capital, who has already begun exploring moving options. Sander Gerber of Hudson Bay Capital noted that several employees messaged him after the primary results saying they’re now thinking of leaving the city.

The fears echo those voiced during the de Blasio years, though many acknowledge that Mamdani represents a far more radical shift in tone and policy.

A changing city—and a shrinking comfort zone for the rich

For the city’s financial elite, the bigger concern isn’t just Mamdani’s policies—it’s the political direction of the city itself. His rise, backed by working-class voters, young progressives, and a multiethnic coalition, marks a generational realignment that could permanently weaken the influence of traditional big-money politics.

Still, some are urging restraint. “We had Mayor de Blasio for eight years,” said Philippe Laffont of Coatue Management. “New York is resilient—and there’s still an election to be won.”

Yet the prevailing sentiment on Wall Street is one of urgency and dread. For the city’s power brokers, Mamdani’s victory has transformed a distant political risk into an immediate existential crisis. The question now isn’t just whether they can stop him—but whether they still have a city worth staying in.