WASHINGTON (CNNMoney.com) -- Banks, investment firms and hedge funds are giving millions of dollars more to Republicans, and abandoning the Democrats they had been supporting just a year ago.
The Center for Responsive Politics says the reversal began early this year, as the Senate started crafting tougher rules to crack down on Wall Street, and that it has become more pronounced.
"We noticed a very dramatic shift right around the beginning of this year, which coincided with financial reform," said Dave Levinthal, spokesman for the Center for Responsive Politics. "This is not just a blip at all; this is a major shift in the opposite direction and one that has persisted ever since."
Looking at the top 20 candidates for federal office receiving strong support from financial firms, only six are Democrats, the center found. New York Sens. Kirsten Gillibrand and Charles Schumer top that list -- which isn't surprising since they represent a chunk of the financial sector, the center noted.
The rest of the top 20 are Republicans, many seeking Senate seats. Former Hewlett-Packard chief executive Carly Fiorina of California tops the list for Republicans, followed by Dan Coats of Indiana and Marco Rubio of Florida.
Some business groups are also giving more heavily to Republicans. While the U.S. Chamber of Commerce tends to support Republicans, in 2008 the group's political committee hiked contributions to Democrats to 39% of their total $144,576. But contributions to Democrats dropped this year to 15% of the total $78,000.
"The chamber is bipartisan; we support Democratic candidates who support our agenda," said Stan Anderson, a managing director at the U.S. Chamber of Commerce, in a response to a question about the chamber supporting mostly Republicans.
Commercial banks and investment firms, in particular, showed a stronger trend in giving more to Republicans, according to the watchdog group.
Bank of America (BAC, Fortune 500) is strongly supporting Republicans this cycle, with Republicans getting 61%, or $834,000, of the $1.4 million total contributions made this year. In the 2008 election cycle, 56% of the bank's contributions went to Democrats, or $1.6 million of the $2.9 million of total campaign contributions.
Morgan Stanley (MS, Fortune 500) is also favoring Republicans, with 55%, or $607,000 of their $1.1 million total, going to Republicans, after favoring Democrats in 2008.
This cycle, Citigroup (C, Fortune 500), of which the federal government still owns a chunk, appears to be playing it safe by giving equally to Democrats and Republicans, about $480,000 a piece. But in 2008, they also favored Democrats, with Democratic candidates getting 63%, or $3 million of the bank's $4.9 million in total contributions.
A Citigroup spokeswoman declined to comment.
Even the giant investment firm Goldman Sachs (GS, Fortune 500), which has favored Democrats for 20 years has tilted toward Republicans this election cycle. Since January 2009, employee and political committee contributions totaled $1.7 million, with nearly a million, or 54%, going to Republican candidates.
Goldman has been the starting point for some big-name Democratic politicians, including former New Jersey Gov. Jon Corzine and President Clinton's Treasury Secretary, Robert Rubin. A few other Goldman alums have joined the Obama administration, including Gary Gensler, who chairs the Commodity Futures Trading Commission.
(Not that everyone at Goldman leans Democratic -- President George W. Bush's Treasury Secretary, Henry Paulson, also worked there.)
A Goldman spokeswoman noted that data includes contributions reported by former Goldman Sachs employees, and otherwise declined to comment on the campaign finance figures.
However, there are some financial firms still favoring Democrats.
JP Morgan Chase (JPM, Fortune 500) is still giving more to Democrats - about 52%, or $545,000 of the $1 million they've spent so far. And the Credit Union National Association has supported Democrats to the tune of $1 million, or 56% of the $1.8 million they've spent so far.
Robert Moffat, a former top IBM executive, is sentenced to six months in federal prison after pleading guilty to insider trading. More
Federal government holds final public hearing on 'fracking,' the natural gas technology that's led to one of the biggest energy booms in U.S. history, but raises groundwater concerns. More
Robert Moffat, a former top IBM executive, is sentenced to six months in federal prison after pleading guilty to insider trading. More
Like Mint.com, a new website aims to take the pain out of accounting by making the data intuitive. More
In these great college towns, you can expand your intellectual horizons, take in the sites and perfect the art of relaxation. More
Screen name (Select one with 3-12 characters; Numbers and letters only)
Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.
Already have the reset code?
Reset code
New password
Password
Forgot password?
Not a member yet?
Screen name
Password
Type what you see in the grey box
CNNMoney will use the information you submit in a manner consistent with our Privacy Policy. By clicking on "sign up" you agree with CNNMoney's Terms of Service and Privacy Policy and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. (learn more)
This service is temporarily unavailable. Please try again soon.
Thanks!
Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.
Go to your Profile page
Be the first to know when there is breaking financial news with timely alerts delivered straight to your inbox.
Fortune's Philip Elmer-DeWitt brings you Mac news from outside the reality distortion field.
Fortune columnist Anne Fisher answers your career-related questions.
Money Magazine's Walter Updegrave answers readers' toughest financial questions.
Fortune managing editor Andy Serwer keeps tabs on Wall Street
CNN's Gerri Willis gives tips and tools for saving more and spending wisely.
Read Full Article »