WASHINGTON - Hillary Rodham Clinton and Barack Obama, who have run for president as economic populists, are benefiting handsomely from Wall Street donations, easily surpassing Republican John McCain in campaign contributions from the troubled financial services sector.

It is part of a broader fundraising shift toward Democrats, compared to past campaigns when Republicans were the favorites of Wall Street. But some Democrats worry that the influx of money will make their candidates less willing to call for reforms to increase regulation of financial markets, which have been in turmoil following a wave of foreclosures on subprime mortgages.

These concerned Democrats argue that their candidates, and McCain, should be willing to push hard for financial institutions to accept more government regulation - in exchange for likely future bailouts, such as the recent deal the Federal Reserve orchestrated for JPMorgan Chase & Co. to take over Bear Stearns.

"I want to hear Clinton, Obama and McCain talk about a quid pro quo," says Jared Bernstein, an economist with the Democratic-leaning Economic Policy Institute. "If we don't hear it, especially from Democrats, it makes sense to ask why not and ask if they are inappropriately cozy with the financial services industry."

Baltimore Sun 3/23/08