Why top Wall Street attorney Jay Claytons proven track record makes him perfect pick for vital role
Jay Clayton is one of the best deal lawyers on Wall Street, which if you know anything about tracking down sophisticated crimes, makes him perfect to run the most high-profile law enforcement office in the country.Trump on Wednesday named Clayton the “interim” US Attorney for the Southern District.The reason the Southern District is so important in uncovering financial crimes is because it spans Manhattan, the home of Wall Street, banks and real estate.
As bank robber Willie Sutton once said “that’s where the money is.”Clayton, 58, knows the money business very well.He was the chair of the Securities and Exchange Commission during Trump’s first term, when Wall Street’s top cop brought nearly 3,000 cases and focused the agency’s efforts to crack down on malfeasance that directly impacted small investors.But it is his private sector deal experience, On The Money has learned, that really gives him an edge running a vast criminal law enforcement operation like the Southern District.“He’s got a proven track record running one of the biggest federal government law enforcement agencies, being even-handed and thoughtful; and strategic,” said one long-time securities lawyer who also served in the government and has worked closely with Clayton.
“Plus his private sector activities span all sorts of issues involving our capital markets that will be highly relevant at the Southern District.”Clayton spent 28 years doing deals for banks, M&A, and underwritings; most significantly he’s an expert at due diligence on deal partners, determining not only if they had the money to pay for something, but that they didn’t rob the money in the first place.During the 2008 financial crisis he was a go-to lawyer for the banks, including Goldman Sachs when they were negotiating a cash infusion from Warren Buffett to stabilize the firm’s balance sheet.Such due diligence is a little known part of M&A work, often overshadowed by the big news of major mult...