Trump selects ex-SEC Chair Jay Clayton as Manhattan's top federal prosecutor

Trump selects ex-SEC Chair Jay Clayton as Manhattan's top federal prosecutor
The appointment marks a transition for Clayton, the "Sheriff of Wall Street" who has no experience in criminal law.
NOV 15, 2024
By  Bloomberg

President-elect Donald Trump is tapping former regulator Jay Clayton to be US Attorney for Manhattan and two of his own criminal defense attorneys for powerful positions in the Justice Department, fleshing out his top picks to reshape American law enforcement. 

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

Trump has indicated that he’ll 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 litigating controversial matters. On the campaign trail, Trump also signaled his willingness to use the department to pursue perceived adversaries. 

The incoming administration’s priorities for law enforcement are likely to include immigration-related and violent crimes. The Manhattan US attorney’s office is famous for tackling complex financial cases and appointees are historically veterans of the office.

Wall Street Sheriff

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

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

As SEC chair under Trump, Clayton mostly succeeded in casting himself as an independent voice focused on protecting small-time investors from fraud and financial industry abuses rather than waging ideological fights. He cultivated relationships with Republicans and Democrats.

“Jay is a highly respected business leader, counsel, and public servant,” Trump said in a post on Truth Social, saying that Clayton did “an incredible job” as SEC Chair during his first term.

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

The US 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 it led a series of investigations targeting members of his inner-circle. It will be the second time Clayton has been put forward for the job. 

Leading SDNY

The Trump White House said in mid-2020 that it would tap Clayton to lead SDNY, but the then-US Attorney Geoff Berman refused to resign before strategically stepping down to ensure his deputy serve in the role instead.

In the end, Clayton never advanced. Senate Majority leader Chuck Schumer at the time called on Clayton to withdraw his nomination, labeling it a Trump attempt to interfere in SDNY investigations. 

Clayton didn’t immediately respond to a request for comment on the announcement. Trump also said he would put forward another lawyer, Dean John Sauer, who represented him in his presidential immunity case in the Supreme Court, to serve as solicitor general. 

Clayton had been reported as being in contention for the Treasury Secretary position in the Trump Administration. When asked about his interest at a Practising Law Institute conference in New York this week, Clayton said: “if asked for a role that I can be effective in, I’ll say yes.”

Blanche started his career at 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 lawyer, he represented Trump at trial in his so-called hush-money case in New York and has represented others in his orbit. 

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

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

US attorneys prosecute civil and criminal cases for the federal government in 93 districts and generally serve at the behest of specific administrations and depart when a new president takes office. Damian Williams, who currently leads SDNY, hasn’t announced his plans. 

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound