Trump taps Wall Street top cop Clayton as intelligence chief

President Donald Trump said he is nominating Jay Clayton to be the next director of national intelligence, following backlash over his selection of housing regulator Bill Pulte to serve in the role on an acting basis. 

Processing Content

Clayton, the top federal prosecutor in Manhattan, was chairman of the Securities and Exchange Commission during Trump’s first term.

“I encourage the United States Senate to confirm Jay as soon as possible,” Trump said on social media.

Clayton, as US attorney for the Southern District of New York, heads the nation’s most prominent federal prosecutors’ office. Its jurisdiction includes Manhattan, making Clayton the de facto sheriff of Wall Street, with the office handling many of the most high-profile cases involving the financial industry.

READ MORE: Fannie, Freddie shares dip as Pulte’s added role raises questions

Senate Majority Leader John Thune on Thursday expressed confidence that Clayton could be approved by the Senate quickly, pointing out that he had been through the confirmation process for other posts.

“My assumption is, at least, that if we can get the nomination of the paperwork here, we can move fairly quickly,” he said.

Clayton “will remain US attorney through confirmation,” Nicholas Biase, a spokesman for the Southern District office, said in an emailed statement. The White House sent Clayton’s nomination to the Senate on Thursday.

Trump stunned Washington earlier this month when he selected Pulte – a loyalist who has used his perch as director of the Federal Housing Finance Agency to launch investigations into perceived political adversaries of the president – to take over as acting spy chief and replace outgoing DNI Tulsi Gabbard. 

Pulte lacked any military or intelligence experience for a role that would have him overseeing the nation’s myriad spy agencies — and his selection drew objections from both parties.

Short-Term Pick

Even as Trump stressed that Pulte was only a short-term pick for the slot, top Senate Republicans urged the president to quickly find a permanent spy chief, expressing concern that failing to do so could endanger efforts to renew Section 702 of the Foreign Intelligence Surveillance Act, which allows US intelligence agencies to collect foreign nationals’ communications overseas.

As late as Wednesday, Trump was praising Pulte, whose start date he moved up from June 30 to June 19. The president had sought to allay concerns by vowing in a social media post to nominate a permanent DNI “with national security experience” as he pushed for a short-term extension of the spy powers measure. 

Democrats threatened to withhold their votes to extend the FISA provision before its slated expiration on Friday if Pulte’s appointment went forward. The president has asked Congress to temporarily extend the expiring surveillance powers while he searched for a permanent pick.

The surveillance authority is slated to lapse after the House failed to pass a three-week extension on a 198 to 218 vote Thursday and departed for a 12-day recess, hours before Trump announced Clayton.

Top Prosecutor

Clayton has not served in the intelligence community but has a record in public service that is likely to assuage some lawmakers who questioned Pulte’s qualifications for the role. After his stint overseeing the SEC ended, Clayton served as Apollo Global Management Inc.’s independent chair while returning to New York-based law firm Sullivan & Cromwell as a senior adviser.

Clayton took over the US attorney’s office after a tumultuous period that saw veteran prosecutors there pitted against Justice Department officials in Washington over the corruption case against then-New York City Mayor Eric Adams. When Trump nominated him for the position, he faced pushback from New York Senator Chuck Schumer, who could have blocked his confirmation. Clayton was appointed interim US attorney.

READ MORE: Fannie, Freddie reform outlook shifts as Pulte takes on new role

The longtime corporate lawyer went into the office with an agenda to focus on violent crime, including human trafficking and gun crime, and policing financial markets. Under Clayton’s leadership, his office has brought cases against former Venezuela President Nicolas Maduro and the founders of First Brands and Tricolor.

Clayton has maintained close ties with the president, a relationship partly forged on the golf course. He has only been US attorney for a little over a year. Many attorneys stay for the full presidential term of four years, if not longer.

Departing DNI Tulsi Gabbard has said she is leaving her post to help her husband as he confronts a bone-cancer diagnosis.

FISA Extension

It remains unclear if Clayton’s selection will help Trump secure a quick extension of the spy powers authorization.

Schumer, the Senate’s top Democrat, told reporters that his caucus would continue to block any extension of US surveillance powers so long as Pulte is still set to become acting spy chief on June 19.

“It doesn’t matter what else they do. Pulte’s gotta be gone,” Schumer told reporters Thursday. He declined to offer an opinion about Clayton when pressed.

Republicans lack the votes to extend it on their own, and Senate Intelligence Committee leaders have worked for months to secure a bipartisan deal for a long-term extension of the controversial program. Privacy advocates say the powers facilitate warrantless surveillance of Americans in contact with foreigners.

Source link

Hot this week

UK economy contracts as Iran war impact felt

The economy shrank slightly in April as the Iran...

Why Retirees Are Fleeing Florida for ‘Halfback’ State

The classic retirement pipeline has been established for years:...

The Consequences of SpaceX’s Trillion-Dollar I.P.O.

Andrew here. What does it mean to be a...

Sorry, Sam Bankman-Fried: Judge Says You’re Staying In Jail

One of Sam Bankman-Fried’s last credible paths...

Riyadh family communities draw investor focus amid Vision 2030

Riyadh’s residential market is experiencing a structural shift as...

Latest Post

EXCL: Outgoing FHA Director Defends Trump Housing Crisis Strategy

Subsidies alone won't solve the nation's housing shortage, a...

UK economy contracts as Iran war impact felt

The economy shrank slightly in April as the Iran...

How Renting a Home Could Help You Snag Free World Cup Tickets

The staggering cost of tickets for the 2026 FIFA...

EXCL: Montecito Manse Renovated by Meg Ryan Hits the Market for $20 Million

Actress Meg Ryan's former Montecito mansion has hit the...

Zac Efron Is Building a $2.7 Million Off-Grid ‘Hemp House’ in Remote Australia

Actor Zac Efron has bid farewell to Hollywood's glossy...

Riyadh family communities draw investor focus amid Vision 2030

Riyadh’s residential market is experiencing a structural shift as...

Why Retirees Are Fleeing Florida for ‘Halfback’ State

The classic retirement pipeline has been established for years:...

Kylie Kelce Reveals She and Jason Have Mouse Infestation at $6 Million Estate

Kylie Kelce has revealed her horror at learning she...
Demo

Related Articles

Popular Categories

Demo