Trump nominates his former SEC chairman, Jay Clayton, as US attorney for Manhattan


(Bloomberg) — President-elect Donald Trump is picking former regulator Jay Clayton to be U.S. Attorney for Manhattan and two of his criminal defense lawyers to powerful Justice Department posts, rounding out his top picks to reshape enforcement of American law.

Trump's plans for the Justice Department have been a whirlwind for months, and his selection of embattled lawmaker Matt Gaetz as attorney general sparked a political firestorm this week. Clayton, who led the Securities and Exchange Commission in the first Trump administration, as well as former federal prosecutor Todd Blanche for deputy attorney general and Emil Bove as associate attorney general, are far less controversial choices.

Trump has indicated he will push for a radical transformation of the Justice Department, which has more than 115,000 employees. The department is central to what Trump will need to carry out his agenda from enforcing federal laws to controversial issues. On the campaign trail, Trump also signaled his willingness to use the department to go after perceived opponents.

The next administration's law enforcement priorities are likely to include immigration-related crimes and violent crimes. The Manhattan U.S. attorney's office is renowned for handling complex financial matters, and the appointees are historically veterans of the office.

Sheriff of Wall Street

For Clayton, the Manhattan U.S. Attorney position would mark a shift in criminal law. Since leaving government at the end of the Trump administration, Clayton has served as the independent chairman of Apollo Global Management Inc. and has returned to the New York-based law firm Sullivan & Cromwell as senior counsel.

Clayton has no experience as a federal prosecutor, a rarity for someone appointed to the post of US Attorney. If confirmed, the role, often called the Sheriff of Wall Street, would put Clayton in charge of high-profile cases, including the prosecution of New York City Mayor Eric Adams.

As SEC chairman under Trump, Clayton mostly succeeded in emerging as an independent voice focused on protecting small investors from financial industry fraud and abuse rather than waging ideological battles. He cultivated relationships with Republicans and Democrats.

“Jay is a highly respected business leader, advisor and public servant,” Trump said in a post on Social Truth, saying Clayton did “a tremendous job” as SEC chairman during his first term.

A spokesman for the US Attorney's Office declined to comment.

The U.S. Attorney's Office for the Southern District of New York, often called the “sovereign district” for its independent streak, clashed with Trump officials during his first presidency as he led a series of investigations targeting members of his inner circle. It will be Clayton's second time running for the job.

SDNY leading

The Trump White House said in mid-2020 that it would appoint Clayton to lead the SDNY, but then-U.S. Attorney Geoff Berman refused to resign before strategically stepping aside to ensure his deputy served in the role.

In the end, Clayton never progressed. Senate Majority Leader Chuck Schumer at the time called on Clayton to withdraw his nomination, calling it an attempt by Trump to interfere with the SDNY's investigations.

Clayton did not immediately respond to a request for comment on the announcement. Trump also said he would nominate another lawyer, Dean John Sauer, who represented him in the presidential immunity case at the Supreme Court, to serve as solicitor general.

Clayton was reported to be in the running for the post of Treasury Secretary in the Trump administration. When asked about his interest at a Practical Law Institute conference in New York this week, Clayton said: “If I'm asked for a role that I can be effective in, I'll say yes.”

Blanche began his career with the SDNY as a paralegal in 1999 before returning as a prosecutor in 2011. He was co-chief of the violent crimes unit. As a defense attorney, he represented Trump at trial in his so-called money case in New York and has represented others in his orbit.

Bove previously served for about a decade as an assistant US attorney in the SDNY with a focus on national security, including a two-year stint as co-chief of that unit.

In the past three years, the SDNY brought several landmark cases, including the prosecutions of FTX co-founder Sam Bankman-Fried and Archegos Capital Management founder Bill Hwang, both convicted of fraud after high-profile trials.

U.S. attorneys prosecute civil and criminal cases for the federal government in 93 districts and generally serve at the behest of specific administrations and leave when a new president takes office. Damian Williams, who currently runs SDNY, has not announced his plans.



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