Between shock and acceptance: Wall Street analyzes how to coexist with Mayor Mamdani

Zohran Mamdani will take over as mayor of New York City on Jan. 1, 2026. The 34-year-old assemblyman will become the youngest mayor to take office in more than a century, as well as the first to have a beard since 1913. One of the strongest questions about his administration is how his socialist policies will fare with Wall Street businessmen.

According to an article in Politico, in which they interviewed several members of the business community, emotions range from fright to curiosity.

The truth is that Mamdani's political platform does not seem to be the most business-friendly. For example, he proposed to create a network of state-owned supermarkets, establish an alternative public security force to the NYPD, freeze rent prices, raise the corporate tax from 7.25% to 11.5% and transform 50 schools into climate resilience centers.

In addition, it plans to offer a significant number of services for free, such as transportation and childcare for children under five. Of course, to implement this ambitious plan he will have to lower spending or raise taxes. Almost certainly, Mamdani seems more inclined to the second option.

In this context, a group of businessmen spoke to Politico about their expectations when it comes to dealing with Mayor Mamdani.

"We are getting closer to acceptance"

Although the race to see which state gets the disenchanted NYC businessmen, the first to launch ads were Tennessee and New Hampshire, some seem to want to give Mamdani the benefit of the doubt. At least at first.

Already in his first interviews after the election, the socialist Democrat seemed to show some ideological pragmatism. "In order to even have a conversation, we need to be able to deliver for New Yorkers, and that means to meet New Yorkers, even those with whom we have any disagreements. So I look forward to having those kinds of meetings, be it with Jamie Dimon or be it with other business leaders," he said.

Scott Rechler, a major real estate developer who donated more than $200,000 to support Cuomo's campaign, said he is "ready to work" with the next mayor. In the same vein is Steven Roth, CEO of Vornado Realty Trust, who also invested a lot of money to try to stop the assemblyman. "I’m an optimist and believe that everything will work out for the best," he told Politico.

Bill Ackman, an ally of President Donald Trump and hedge fund mogul, congratulated the Democrat after his victory overAndrew Cuomo and Curtis Sliwa. "Mamdani won a decisive election. He will be our mayor for the next four years. If I can help NYC, just let me know what I can do," he stated.

They were joined by Kathy Wylde, president of the Partnership for New York City, who associated the present with the famous seven stages of grief. As to which one they are going through now, she told the aforementioned media that "we’re moving toward acceptance."

On the other side is John Catsimatidis, oil tycoon, who was more vocal about his disenchantment with Mamdani's triumph. "I talked to him once. He’s a young kid … He never ran anything. If he came in with a job application I wouldn’t hire him to run a supermarket," he said.

Can Kathy Hochul reassure New York business?

Despite Mamdani's vigorous pledge to raise the corporate tax, the truth is that he can't do it on his own. The authority to raise taxes resides with the New York State Legislature, based in Albany.

While the mayor has some leeway to raise certain rates or lower taxes, if he wants to raise corporate tax rates, Mamdani would have to send a bill and convince Democrats in the Legislature.

On this Kathy Wylde spoke, hopeful that Kathy Hochul will rein in the mayor's socialist impulses: "The governor has done a great job of reassuring the business community since the primary that she will not allow anything crazy on taxes and that she fully appreciates that New York has to stay competitive."