Later On

A blog written for those whose interests more or less match mine.

Another wrinkle in Barr’s effort to derail investigations

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Parm Martens and Russ Martens report in Wall Street on Parade:

Shortly after 9 p.m. last evening, the U.S. Attorney General, William Barr, stunned prosecutors in the Southern District of New York with the announcement that their boss, Geoffrey Berman, was stepping down as U.S. Attorney in that District and would be replaced with the sitting Chairman of the Securities and Exchange Commission, Jay Clayton, who lacks even a shred of criminal prosecution experience. What Clayton does have is a lot of experience representing Wall Street’s largest banks, like Goldman Sachs and JPMorgan Chase, both of whom are currently under intense criminal investigations by the Justice Department. Clayton was a former partner at Wall Street’s go-to law firm, Sullivan & Cromwell, which is currently representing Goldman in the criminal case and representing JPMorgan in various matters.

The breaking news last night went downhill from there. Several hours after Barr’s announcement, Berman announced that he had not resigned from his job and had no intention of leaving his post until his replacement had been confirmed by the U.S. Senate – which could take months. There is also no assurance that Clayton would actually be confirmed, since some Republicans and Democrats believe that Clayton has been a lapdog for Wall Street in his current post.

Even more problematic, Clayton’s family has ties to an opaque company called WMB Holdings, described by David Dayen in The Nation magazine like this:

“This company and its affiliated partners (Delaware Trust Co and CSC) are conduits for creating shell corporations and other sketchy vehicles used in tax evasion and money laundering. Public Citizen found apparent links between these companies and Mossack Fonseca, the notorious Panamanian law firm at the center of the Panama Papers scandal.”

The timing of the attempted ouster of Berman is suspicious on multiple fronts. Goldman Sachs is under criminal investigation over a multi-billion-dollar money laundering and embezzlement scheme involving the Malaysian sovereign wealth fund known as 1MDB. Goldman Sachs has been fighting the Justice Department’s demand that it plead guilty in order to settle the case, according to media reports.

According to the Sullivan & Cromwell website,  . . .

Continue reading. There’s more.

Written by LeisureGuy

20 June 2020 at 11:55 am

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