mamdani

Despite ideological divides, Mamdani’s grassroots campaign has gained traction across class and racial lines, bolstered by a savvy online strategy and star endorsements.

Wall Street is on edge as Zohran Mamdani, a 33-year-old democratic socialist and political outsider, moves a step closer to the New York City mayoralty. After defeating former Governor Andrew Cuomo in a shocking Democratic primary win on Tuesday, Mamdani’s candidacy is now seen as a serious threat by financial elites — many of whom are already considering relocation or investment pullbacks.
“This will be the end of New York City as we know it,” said Michael Nelson, a Wall Street recruitment executive, echoing the fears of high-income clients earning over $1 million annually. As reported by Bloomberg, the anxiety has already translated into real-time market consequences. Property-related stocks such as Flagstar Financial Inc. fell by up to 6.7 per cent midweek, while other major real estate trusts — Empire State Realty Trust, SL Green Realty, and Vornado Realty Trust — also took a hit.

Despite ideological divides, Mamdani’s grassroots campaign has gained traction across class and racial lines, bolstered by a savvy online strategy and star endorsements. On Wednesday, the candidate appeared in a viral Instagram video alongside model Emily Ratajkowski, who sported a “Hot Girls for Zohran” t-shirt while urging voter turnout. Mamdani’s messaging, which blends economic populism with progressive cultural appeal, has resonated with younger and working-class voters disillusioned with New York’s entrenched political structure.

“Our message is simple,” Mamdani said in his post-victory speech. “A life of dignity should not be reserved for a fortunate few.”

Among his most talked-about proposals are free childcare, public grocery stores, fare-free public buses, and aggressive rent controls — all to be funded through higher taxes on the city’s wealthy residents and corporations. He has also floated a controversial $70 billion municipal debt plan, though such fiscal moves would require approval from state officials, including Governor Kathy Hochul, who has already voiced opposition.

Mamdani’s rise has sent a ripple of panic through New York’s donor class. Billionaire hedge fund manager Dan Loeb posted on X (formerly Twitter), “It’s officially hot commie summer,” referring to Mamdani’s upset win. Former New York Governor Andrew Cuomo, 67, was backed heavily by business magnates such as Michael Bloomberg, Bill Ackman, and Steven Roth of Vornado Realty. His campaign committee, “Fix the City,” amassed an unprecedented $25 million war chest. Yet, this establishment coalition failed to prevent Mamdani’s ascent.

Cuomo’s campaign leaned heavily on negative advertising targeting Mamdani and offered few fresh solutions to the city’s mounting issues, including transit safety and the rising cost of living. Though he resigned as governor amid sexual harassment allegations — which he denies — Cuomo retained endorsements from high-profile figures like former President Bill Clinton. He is now reportedly considering continuing his run as an independent.

Mamdani, by contrast, gained support from progressive political leaders including Alexandria Ocasio-Cortez and Bernie Sanders. His campaign has focused on mobilising tens of thousands of volunteers who canvassed door-to-door and dominated digital platforms.

Still, Wall Street’s discomfort may be premature. Any attempt by Mamdani to overhaul tax policy would require state-level cooperation, making sweeping reform unlikely without broader legislative alignment. According to Kathy Wylde, a seasoned intermediary between the city’s business community and policymakers, Mamdani’s ideology may prove polarising for employers and large taxpayers, even if it galvanises younger voters.
Not everyone in finance is outright dismissive. “While we might disagree on certain issues, we should always be hopeful that Mamdani — if he ends up being elected mayor — can unite the city to address its critical education, public safety, housing and economic development needs,” said Ralph Schlosstein, former head of Evercore Inc.

But some financiers are already taking drastic measures. “I’ve talked to hedge fund guys who’ve told me they’ve got a foot out the door,” said Eric Rosen, formerly of JPMorgan. “I left New York City eight years ago because I didn’t like the way the city was being run. I sold my Park Ave co-op and it’s now down 25 per cent. My house in Florida is up 250 per cent. The market has spoken.”

The November general election will now determine whether Mamdani can translate his primary momentum into citywide leadership. Potential rivals include Republican Curtis Sliwa and current Mayor Eric Adams, who is running independently following corruption allegations.

Meanwhile, the city’s financial elite must decide whether to challenge Mamdani’s momentum, adapt to it — or simply walk away from a city in political transition.