Why are lawyers telling money managers not to give Trump cash?

Donald Trump calls Hillary Clinton "the Wall Street candidate." In July the Wall St. Journal noted that hedge-fund managers (for example) had so far given the Democrat tens of millions, the Republican nearly nothing.

Counting differently, the Center for Responsive Politics found a similar disparity.

What's wrong? Don't rich guys love Trump? It's not about love: Lawyers for professional money managers are warning them not to give money to the Donald Trump for President campaign, or political-action committees that back the Republican nominee, because of the company Trump keeps: the GOP's Vice Presidential candidate, Mike Pence, as Gov. of Indiana has a legal fence around him limiting contributions from donors who seek business with his state.

As I wrote in today's Inquirer: Attorneys at blue-chip firms say Trump's choice of Indiana Gov. Mike Pence for vice president blocks donors from collecting millions in fees from Indiana's $30 billion state pension system under anti-pay-to-play rules of the federal Securities and Exchange Commission.

Hundreds of money managers, including units of big Wall Street and foreign banks as well as hedge, real estate, and private equity funds, compete for pension and other investment contracts from Pennsylvania, New Jersey, Indiana, and other states.

Fear that donations might block them from getting paid - or fined for illegally pocketing state fees - has money managers, brokers, and other pros "prophylactically restraining their contributions" to the few hundred dollars allowed under federal limits, says Peter Gulia, a Center City-based lawyer who works for retirement-plan advisers. "Lawyers are telling employees, 'Don't contribute.' "

Under the rules, fat contributions to Trump "could trigger a two-year timeout" on getting paid for their state work, says a memo posted to clients of the Washington-based law firm K&L Gates L.L.P.

Pensions & Investments magazine noted that the SEC rule would block investment managers from donating to Gov. Christie when he launched his ill-fated primary campaign against Trump.

Investment managers also risk running afoul of recent Municipal Securities Rulemaking Board and Commodity Futures Trading Commission dicta limiting donors from collecting fees from public entities.

And a new SEC rule, G-37, restricts payments to municipal-finance advisers who give to politicians. That went into effect Wednesday, partner Kenneth Gross says in a note to clients at the New York-based law firm Skadden Arps Slate Meagher & Flom...

Even Facebook likes could be seen as a "prohibited solicitation..."

What about the many money managers who contribute to U.S. senators and other national politicians who have influence with state parties? "That may be OK," Gulia tells me. "They have to draw the line somewhere."