Mamdani's NYC victory alarms Wall Street with concerns about potential tax hikes and regulation

From CNBC: 2025-06-25 17:30:00

Wall Street is reeling from Zohran Mamdani’s Democratic primary win for NYC mayor. Mamdani’s socialist views on taxing the wealthy and increasing regulation have investors concerned about potential tax hikes and a mass exodus of wealthy residents from NYC to low-tax states like Florida and Texas.

Mamdani’s nomination has hedge fund managers and business leaders on edge. His emphasis on socialism and redistributing wealth goes against Wall Street’s interests in unbridled capitalism. Stocks of NY-based banks and real estate companies took a hit as investors worry about Mamdani’s proposed policies on rent control and increased taxation.

Business leaders like Kathryn Wylde fear Mamdani’s socialist policies could lead NYC down a path of economic disaster. Wylde believes the state government should step in to prevent a crisis and worries that raising taxes won’t solve the city’s problems. Concerns are heightened in wealthy neighborhoods like the Upper East Side, where Mamdani faces opposition from high earners.

Read more: Mamdani’s NYC victory leaves Wall Street ‘alarmed’ and ‘depressed’