Blogs Dashboard

They’re two of New York’s most influential politicians who have found common cause on Wall Street-related issues in the past despite different party affiliations. But this time New York State’s senior senator and champion campaign fundraiser Chuck Schumer and New York City Mayor and financial information mogul Michael Bloomberg are seeing anything but eye-to-eye.

At issue is Dubai’s plan to buy a 20 percent stake in leading U.S. electronic stock exchange Nasdaq — one of the many moving parts in a deal that will also see Nasdaq take a stake in the oil rich emirate’s stock exchange and accomplish it’s long hoped-for goal of taking control of Nordic stock exchange OMX.

For some, including Schumer, a Democrat, the deal recalls Dubai’s last controversial foray into the U.S., state-owned Dubai Ports World’s bid to acquire key U.S. ports as part of a larger international takeover deal.  

At this early stage this deal gives me pause, Schumer said, urging Treasury Secretary  (and former Goldman Sachs CEO) Henry Paulson to lead a thorough investigation into the deal.  While I am and have been a big proponent of foreign investment in the United States, we must still be careful of the kinds of investments made in our critical infrastructure, financial exchanges, utilities, and other areas that are vital to the operation and security of our country.

Several other Democratic lawmakers called for a careful national security review of the deal and President George W. Bush promised to “take a good look at it as to whether it has any national security implications.”

But Bloomberg, who has been taking an increasingly high national profile and recently changed his party affiliate from Republican to independent, saw only positives from the deal.

Today’s announcement that Nasdaq is partnering with Borse Dubai to acquire the Swedish exchange OMX appears to be good news for both New York and the nation, especially because it gives our City a significant leg-up on our competitors in Europe,” he said in a statement.

And in what could be read as a dig at Schumer — an erstwhile ally on issues like the supposed dangers from excessive corporate regulation to New York’s primacy as a financial center, he continued:  “Of course, like all such deals, this one should undergo all the appropriate scrutiny but I hope that that discussion does not devolve in the kinds of demagogic attacks that could cost Americans jobs and threaten

(Photo: Reuters)