Trump’s Pick for Wall Street Prosecutor Will Keep Apollo Stock

President Donald Trump’s pick to police Wall Street’s financial crimes plans to hang onto holdings in Apollo Global Management, American Express and a digital asset platform, according to documents released Friday by the Office of Government Ethics. 

Jay Clayton, the Sullivan & Cromwell lawyer Trump selected to serve as US Attorney for the Southern District of New York, disclosed his assets, clients and financial stakes in the documents. Clayton, 58, joined Apollo’s board in 2021 following co-founder Leon Black’s decision to step down as CEO as he faced scrutiny over his ties to convicted sex offender Jeffrey Epstein.

But rather than sell off his stake in the private equity giant and a handful of other companies he had close business relationships with, Clayton has opted to recuse himself should matters involving them cross his desk as the top prosecutor in a district that oversees Wall Street. 

Clayton, who was Trump’s chair of the Securities and Exchange Commission during the president’s first term, will resign his position at Apollo, his law firm and other companies when he’s confirmed by the Senate, according to his ethics agreement that spells out the steps he’ll take to remove conflicts of interest. 

He’ll also step down from American Express’ board of directors, and as an adviser to digital asset platform Fireblocks, Inc. He’s already resigned from some positions, including a senior adviser role at Coinbase Asset Management, an investment firm owned by the cryptocurrency exchange with the shared name.

But he’s not selling off his holdings in some of those companies, his ethics agreement says. Clayton will also continue to have equity stakes in Fireblocks and accounting and advisory firm CFGI LLC. 

Clayton will hold onto his common Apollo stock, but divest a capital commitment for a fund for employees. He said he will sell his interests in more than 20 other companies, including Apple Inc., Bank of America Corp., GE Electric Co. and UnitedHealth Group Inc. 

The assets he’s retaining that will require him to recuse from some matters are worth at least $2.6 million, according to the filing. Overall, Clayton disclosed holdings worth at least $33.9 million. Nominees value their assets in broad ranges. 

Because of his position as US attorney, federal rules don’t require Clayton to divest all his holdings as is required by cabinet officials and other political jobs, said attorney Stan Brand, an expert in ethics law. 

“As long as he’s not participating in issues or cases that relate to his investments,” Brand said, “there’s not an issue.” 

New York’s Southern District handles many high-profile financial fraud cases, as well as those alleging terrorism, organized crime and public corruption. They include the prosecutions of FTX co-founder Sam Bankman-Fried and Archegos Capital Management’s Bill Hwang, both convicted of fraud. 

US attorneys, who prosecute civil and criminal cases for the federal government, are nominated by the president and must be approved by the Senate. 

If confirmed, Clayton will forgo some of the perks from his past roles. Sullivan & Cromwell offers retired partners office space and secretarial services at the firm’s expense, while Apollo lets retired directors the right to invest in its sponsored funds. Clayton won’t take advantage of those benefits for the duration of his time in office, according to his disclosure.

With assistance from Bill Haubert.

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