In testimony before a House panel, Securities and ExchangeCommission Chairman Jay Clayton stopped short of stating that hewould bow out of considering President Donald Trump's nominationof him to take over as the U.S. attorney for the SouthernDistrict of New York, replacing Geoffrey Berman, who was fired, andthat he was "committed" to leading the commission.
|Clayton opened his testimony before the House Financial ServicesSubcommittee on Investor Protection, Entrepreneurship and CapitalMarkets by stating that he first wanted to address his "potentialnomination" to the court.
|"I have a long-held, deep respect for the work of the SouthernDistrict," Clayton said, "which is recognized throughout our nationand internationally for enforcing the law, pursuing justice,without fear or favor. My deep personal respect is largely theresult of working with the Southern District and its distinguishedalumni, including senior personnel at the SEC. I recognize that thenomination process is multifaceted, and uncertain. It's clear theprocess does not require my current attention. In short, I'm fullycommitted to and focused on my role at the SEC."
|House Financial Services Committee Chairwoman Maxine Waters,D-Calif., questioned Clayton on Trump's intention to nominate himto the court.
|The firing of Berman, Waters said, "appear to be a continuationof Trump's efforts to squash any attempts to hold him and hisenablers accountable."
|Waters noted the Southern District of New York "has beeninstrumental in conducting independent investigations intoPresident Trump's associates and the Trump organization and iscurrently investigating Deutsche Bank, an institution with long andsubstantial financial ties to President Trump."
|Waters stated that she's "deeply concerned that while yournomination to this important post is pending, President Trump andAttorney General [William] Barr may try to interfere with yourability to independently and effectively oversee the Securities andExchange Commission and serve as Wall Street's cop on the beatduring a global health pandemic that has caused one of the worstfinancial crises of our lifetime."
|Waters then asked Clayton if he planned to continue serving aschair of the SEC while he awaited his confirmation to thecourt.
|Clayton responded: "As I mentioned in my opening statement, Idon't think that matter requires my attention at this time. Iexpect to continue to devote my full attention to thecommission."
|Rep. Carolyn Maloney, D-N.Y., probed Clayton on when he firstdiscussed the Southern District position with the president or theadministration, including with Barr.
|The issue, he said, "was first raised with the president andattorney general last weekend as something that I wanted to do;they first became aware of it last weekend."
|Rep. Madeline Dean, D-Pa., later inquired as to exactly whenClayton's conversation took place with Trump administration.
|Clayton replied: "The weekend of the 12th was the initialconversation."
|Said Dean: "That would have been the weekend before the Fridaynight firing of Berman."
|Responded Clayton: "Yes, the weekend of the 12th. … The firsttime it was raised was the weekend of the 12th….Let me be clear onthis issue, this was entirely my idea. This is something that I'vebeen thinking about for several months as a possible continuationof public service."
|Maloney also asked if Clayton would recuse himself from all ofthe Southern District's "current investigations of President Trumpand his associates."
|Replied Clayton: "Here's what I'm going to say: That's a processthat's way down the road. In my current position and in anyposition I take, I commit to doing it independently, without fearor favor, in the pursuit of justice."
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