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(Bloomberg Opinion) -- As the U.S. Attorney in Manhattan, Geoffrey Berman sat atop one of the most powerful and independent perches in federal law enforcement. His office has long held dominion over the most significant white-collar crime cases in the country. It has taken on terrorists and organized crime. And sometimes it has investigated or prosecuted people close to the president of the United States.
Berman’s team took down President Donald Trump’s personal lawyer, Michael Cohen, in 2018 on charges of tax evasion, bank fraud and campaign finance violations involving hush money payments to two women who said they had sexual encounters with the president. More recently, Berman has been investigating Rudolph Giuliani, a ubiquitous Trump lawyer and apologist, for possibly violating lobbying laws related to work he’s done in Ukraine. (That’s the same Ukraine that Trump tried to strong-arm into smearing former Vice President Joe Biden, leading to Trump’s impeachment; Berman’s office has already indicted two Giuliani associates, Lev Parnas and Igor Fruman, as part of that.)
Berman’s office has also been investigating whether Deutsche Bank AG complied with laws meant to stop money laundering. Deutsche Bank has longstanding financial ties to Trump and the family of his son-in-law, Jared Kushner. I’ve detailed Trump’s links to the bank previously, here and here. Berman has subpoenaed Trump’s inaugural committee as part of a probe into how the incoming president’s team spent more than $106 million raised for his inauguration. And John Bolton’s forthcoming book contends that Trump promised Turkey’s president, Recep Erdogan, that he would block investigations into a Turkish state-owned bank, Halkbank. You guessed it; Berman’s office is investigating Halkbank, too.
And so it came to pass that Attorney General William Barr fired Berman on Saturday afternoon, acting, he said, on Trump’s orders. Per the usual carnivalesque doings in Trumplandia, Berman was fired after refusing to resign after Barr announced, incorrectly, late Friday that Berman was “stepping down.”
To his credit, Berman stood his ground, initially saying he wasn’t going anywhere because the Senate had not appointed his successor and he had to look after his office’s investigations. To his discredit, Barr noted in the letter he wrote canning Berman that he was “surprised and disappointed” that Berman had “chosen public spectacle over public service.”
Barr has been around awhile. He surely knows that when someone like Berman learns of his dismissal from a press release distributed into the media’s equivalent of a black hole — late on a Friday night — and the release misrepresents Berman’s understanding of the facts, well, Berman might be unlikely to just play ball.Barr also surely knows that Berman’s investigations all involve sensitive matters touching Trump, and whatever legitimate reasons he might claim to have for helping Trump remove Berman, the atmospherics are beyond bad. The presidential election is less than five months away and cynics like me can be forgiven for thinking that this looks exactly like a housecleaning. Democrats in Congress think so, too, and are already scheduling hearings and calling for investigations.Trump has chosen Jay Clayton, chairman of the Securities and Exchange Commission, to replace Berman. Clayton has never served as a federal prosecutor. Before heading the SEC, he practiced corporate law in the private sector. One of his clients was Deutsche Bank. Trump and Barr may insist that Clayton’s resume and client list are irrelevant, but, of course, they matter. Clayton faces hurdles getting the job anyhow because Senator Lindsey Graham, a Republican overseeing the Senate Judiciary Committee, said he would defer to New York’s senators, both Democrats, when considering who should succeed Berman.