Preet Bharara, a notable federal prosecutor in Manhattan who gained notoriety for investigating cases
of insider trading, was fired over the weekend.
As has become the norm when a new president
enters the White House, the President requested federal prosecutors appointed by the prior administration resign. But in this case,
President Trump touted his strong relationship with the Democrat in the Senate, Chuck Schumer, and asked Bharara to keep his post as U.S. attorney for the Southern District of New
York.
According to a Bloomberg
report, Bharara holds one of the most influential and independent prosecutor offices and is seen as Wall Street's "enforcer."
He was also well regarded by both Republicans and Democrats. So it was a bit surprising to find out that the president tasked the
Attorney General Jeff Sessions with ordering 46 U.S. attorneys to submit letters of resignation immediately.
But Bharara refused to resign, so he was fired. His Tweet over the weekend confirmed as much when he wrote, "I did not resign.
Moments ago I was fired."
Impact To Investigations
The Bloomberg report suggested Bharara's departure implies some of the ongoing investigations his office was overseeing could be
disrupted or even delayed. Some of the ongoing cases include Deutsche Bank AG (USA) (NYSE: DB)'s alleged involvement in its handling of "mirror trades" which helped Russian
clients convert rubles into Western currencies.
Bharara's office was also investigating a fraud case against Valeant Pharmaceuticals Intl Inc (NYSE: VRX) along with a political corruption case involving the New York City Mayor
Bill de Blasio and aides to New York's Governor Andrew Cuomo.
See Also:
Citi
Downgrades Novartis Following SAG Investigation
Response
To GOP Healthcare Bill Ranges From Tepid Support To Outright Opposition
Image: By David Shankbone (Own work)
[CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.