New York US Attorney Geoffrey Berman Steps Down, President Trump Nominates SEC Chair Jay Clayton to Post [Updated]

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U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton may be the next U.S. Attorney for the Southern District of New York.

According to a Department of Justice press release published late Friday, Clayton was nominated by U.S. President Donald Trump to helm the prosecutor’s office, three years after he first took on the role as chairman of the nation’s top securities regulator. Clayton’s term as chairman was slated to expire in 2021.

While initially, the press release said current SDNY U.S. Attorney Geoffrey Berman would be stepping down, he denied plans to resign in a statement late Friday. Trump fired him Saturday, according to a separate statement from U.S. Attorney General William Barr, although Trump himself apparently told reporters he was “not involved.” Ultimately, Berman said late Saturday that he would be stepping down “effective immediately.”

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“It has been the honor of a lifetime to serve as this District’s U.S. Attorney and a custodian of its proud legacy,” he said in his second statement.

In Friday’s DOJ statement, attributed to Barr, the department announced that U.S. Attorney for New Jersey Craig Carpenito would serve in the Southern District role on an interim basis starting July 3, until Clayton is confirmed by the U.S. Senate. Barr’s statement on Saturday changed this as well, announcing that Deputy U.S. Attorney Audrey Strauss would instead be filling in on the interim basis.

“I know that under her leadership, this Office’s unparalleled AUSAs, investigators, paralegals, and staff will continue to safeguard the Southern District’s enduring tradition of integrity and independence,” Berman said in his statement Saturday.

According to Stephen Vladeck, law professor at the University of Texas School of Law, it was possible Berman could continue serving until Clayton is confirmed. Martin Lederman, a former Deputy Assistant Attorney General and current law professor at the Georgetown University Law Center, said on Twitter Trump can remove Berman, but Barr cannot.

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Preston Byrne, a partner and attorney with Anderson Kill, told CoinDesk that the issue surrounding this question is whether the provisions addressing appointments and firings conflict. In his view, “they only conflict if appointees can’t be fired.”