Trump pick Jay Clayton's term extended as Manhattan's top federal prosecutor

By Luc Cohen

NEW YORK, Aug 18 (Reuters) - Federal judges in Manhattan on Monday extended Jay Clayton's term as the district's top federal prosecutor, as Senate Democrats block U.S. President Donald Trump's nominee for the U.S. Attorney role from being permanently confirmed.

Trump in April appointed Clayton, a former chairman of the Securities and Exchange Commission, to serve as interim U.S. Attorney for the Southern District of New York for a 120-day period while the administration pursued Senate confirmation for him to serve in the role full-time.

In a brief statement, the court's judges said they had authorized Clayton to serve in his role until a permanent nominee is appointed by the Senate. Senate Democratic Minority Leader Chuck Schumer has been blocking Clayton's nomination, invoking a Senate tradition that allows senators to block some of the president's judicial nominees in their states.

The Manhattan U.S. Attorney is considered one of the most powerful prosecutors in the country. The office, known for bringing high-profile financial crimes, terrorism and public corruption cases, has historically enjoyed a greater degree of independence from the Justice Department than the other 92 U.S. Attorneys' offices around the U.S.

Clayton, a former lawyer at Sullivan & Cromwell who specializes in mergers and capital raising, is a political independent who developed a reputation while at the SEC during Trump's first term for trying to forge consensus with the agency's Democratic commissioners.

During the first seven months of Trump's second term, the Justice Department has intervened in the Southern District's cases and personnel matters in ways legal experts say undermine the office's traditional autonomy.

In February, acting U.S. Attorney Danielle Sassoon resigned rather than carry out the Justice Department's instruction to drop corruption charges against New York Mayor Eric Adams. Adams had pleaded not guilty.

In July, the Justice Department fired a widely-respected Southern District prosecutor, Maurene Comey, without explanation. She is the eldest daughter of James Comey, the former FBI director whom Trump has attacked for his role in investigating Russian interference in the 2016 election, which Trump won.