Cantor Loss Upends Republicans, Dims Immigration Bill

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Note: The latest news report is that Eric Cantor will resign his post as House Majority Leader effective July 31

U.S. House Majority Leader Eric Cantor’s historic loss in yesterday’s Virginia primary sent shock waves through the Republican Party, creating an opening for a Tea Party-backed candidate to vie for a leadership post and likely cementing Washington gridlock for years.

Cantor is highly unlikely to quit his leadership post, according to a Republican familiar with his plans.

House Speaker John Boehner, an Ohio Republican, already struggled to marshal his caucus behind basic bills to fund the government and to support such business priorities as rewriting the nation’s immigration laws. His job was made harder by insurgent David Brat’s 56 percent to 44 percent victory over Cantor, the House’s second-highest ranking Republican leader.

“It is stunning on so many levels,” said Ari Fleischer, the former press secretary to President George W. Bush and a onetime House aide. “The most important is it likely means that there is no chance that immigration reform gets on the House floor this summer.”

Cantor’s loss could also have long-range market repercussions, as the seven-term House veteran was an ally for Wall Street on issues ranging from the 2008 Troubled Asset Relief Program to supporting the Export-Import Bank. Those connections also made him vulnerable to the challenge from the small-government movement that emerged after Congress passed the bank bailout in response to the 2008 financial collapse. [...]

 

Continue reading this report:
http://www.bloomberg.com/news/2014-06-11/cantor-loss-shocks-republicans-dims-immigration-changes.html