Trump nominates Jay Clayton as top US intelligence official after pushback on Bill Pulte
US President Donald Trump has nominated former SEC chair Jay Clayton to be director of national intelligence, following criticism over his appointment of Bill Pulte as acting DNI.
Trump's new intelligence nominee
Donald Trump has nominated Jay Clayton, former head of the US Securities and Exchange Commission (SEC), to become the country’s leading intelligence official. Clayton currently serves as US attorney for the southern district of New York. The president faced widespread criticism for installing a controversial ally, Bill Pulte, as acting director of national intelligence while searching for a permanent candidate.
Clayton's background and scrutiny
Like Pulte, Clayton has no significant operational experience in any of the 18 agencies that produce and analyze intelligence for the Pentagon and the president, which the directorate coordinates. However, early signs of bipartisan support for his appointment emerged. Clayton spent most of his career as a Wall Street corporate attorney. Trump urged the Senate to confirm Clayton as soon as possible.
During the 2007-2008 financial crisis, Clayton played a pivotal role in negotiating bailouts and buyouts, including the fire sale of Bear Stearns to JPMorgan Chase, Berkshire Hathaway’s rescue of Goldman Sachs, and the sale of Lehman Brothers’ distressed assets to Barclays Capital. Some of his Wall Street work and potential conflicts of interest faced scrutiny when he was nominated to lead the SEC in 2017. He represented Ally Financial in the $25 billion “robo-signing” foreclosure fraud settlement. His defense of Deutsche Bank in a sanctions-evasion case involving Russian oligarchs is likely to receive renewed attention.
Pulte controversy and FISA deadline
Trump has doubled down on naming Pulte as acting director, emphasizing it would be short-term. The president said he wants Pulte to downsize the office, which has already been significantly scaled back in his second term. Tulsi Gabbard left the DNI post because her husband is being treated for cancer. On Thursday, the House failed to pass a short-term extension of the Foreign Intelligence Surveillance Act (FISA) amid controversy over Pulte’s appointment.
Mark Warner, vice-chair of the Senate intelligence committee, called Clayton a “capable public servant” but said that before the Senate can take up a FISA extension, there must be a clear guarantee that Pulte will not serve as acting DNI. FISA Section 702, which allows US intelligence agencies to intercept foreign communications without a court warrant, expires on Friday unless renewed by Congress. Senate Minority Leader Chuck Schumer demanded Pulte step down, saying national security is too important for him to remain in the DNI role.
