Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

What a House majority leader brings to banking

Noel King Sep 2, 2014
HTML EMBED:
COPY
Former House majority leader Eric Cantor has a new job with Wall Street providing "strategic counsel" to an investment bank's corporate and institutional clients. Spencer Platt/Getty Images

What a House majority leader brings to banking

Noel King Sep 2, 2014
Former House majority leader Eric Cantor has a new job with Wall Street providing "strategic counsel" to an investment bank's corporate and institutional clients. Spencer Platt/Getty Images
HTML EMBED:
COPY

Former House majority leader Eric Cantor will join Moelis and Co. as vice chairman and managing director. Though he lacks experience working on Wall Street, Cantor is still a prize hire for the firm, which donated to his campaigns when he was a candidate for office. 

Moelis wasn’t one of Cantor’s bigger donors, but “he was clearly in their sights,” said Sheila Krumholz, executive director of the Center for Responsive Politics. “He was important to them and, of course, they are now important to him.”

Cantor will open the firm’s Washington, D.C. office, which, says Jeff Berry, a professor of political science at Tufts University, is an indication of exactly why Cantor is so valuable. 

“He’s not opening a Washington office because they see deals in northern Virginia and want to get close to them,” Berry said. “He’s opening a Washington office so he can open doors for the investment bank and help them with regulatory problems.”

Cantor will start at a salary of $400,000 a year, and will get bonuses and stock options worth around $3 million more.

Moelis, which frequently advises on mergers and acquisitions, said in a statement that Cantor was hired to “play a leading role in client development and advise clients on strategic matters.” 

Dennis Kelleher, the president and CEO of Better Markets, a nonprofit that promotes the public interest in finance, says Cantor’s resume would indicate that mergers and acquisitions are probably not his area of expertise. 

“One could argue, it seems to me, that he wouldn’t even be qualified to be an intern at most of the firms on Wall Street,” Kelleher said. 

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.