A former
high-ranking Bank of America (BofA)
investment banker is at the center of a prolonged Justice Department
investigation examining whether confidential information was leaked ahead of a
major $8 billion energy sector acquisition, according to Bloomberg.
Jason
Satsky, who previously served as global head of power, utilities and energy
infrastructure investment banking at BofA, has been under investigation by the
Manhattan U.S. Attorney’s Office for more than a year regarding a potential
insider trading violation connected to an $8 billion takeover announced in
2022.
The
investigation focuses on whether Satsky improperly shared information about
South Jersey Industries’ acquisition by Infrastructure Investments Fund, a
private investment vehicle backed by JPMorgan. When announced, the deal sent
South Jersey Industries’ stock soaring 40%, according to people with knowledge
of the inquiry.
According
to Bloomberg, Bank of America placed Satsky on leave last year after learning
of the federal investigation. Though the bank has not determined any wrongdoing
on his part, Satsky was ultimately dismissed in March during a broader round of
job cuts at the financial institution.
The veteran
banker has not been charged with any offense, and the investigation has
continued for more than a year without action from prosecutors. His employment
record with the brokerage industry’s main regulator indicates involvement in a
pending Justice Department investigation of “securities transactions”
without providing further details.
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also like: Bank
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2017
Unusual trajectory for
Wall Street investigation
The probe’s
timeline represents a departure from the typical pattern of financial industry
investigations. In many high-profile insider trading cases, authorities
typically inform financial institutions about investigations only in the final
stages, often resulting in immediate terminations that coincide with public
charges.
By
contrast, this investigation has unfolded gradually and quietly. When Satsky
initially went on leave last year, colleagues weren’t informed of the reason
behind his absence. The bank had no open internal investigations into him at
the time of his March departure.
The
transaction under scrutiny was one Satsky worked on after joining Bank of
America from Credit
Suisse in 2012. Bank of America represented South Jersey Industries, a
publicly traded natural gas utility holding company, while Infrastructure
Investments Fund, backed by JPMorgan, sought to take the business private in a
deal valuing it at $8.1 billion.
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liked: Billionaires’
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Rare focus on senior
banker
Insider
trading investigations targeting bankers of Satsky’s seniority are uncommon in
the financial industry. Senior dealmakers typically operate under strict
confidentiality protocols, understanding that information leaks can derail
transactions and damage both their institutions’ reputations and their own
careers.
Satsky, who
holds a law degree from Duke University, began his career in 1997 at what was
then known as Salomon Smith Barney, amassing nearly three decades of experience
in investment banking.
The
investigation continues amid shifting priorities at the Justice Department
following President Donald Trump’s return to the White House, creating
uncertainty around the outcome of pending white-collar investigations. This has
reportedly created tension among prosecutors in the Southern District of New
York as they await the arrival of Jay Clayton, Trump’s nominee to lead the
traditionally independent office known for its Wall Street enforcement actions.
The UK’s
FCA has also recently dealt
with the case of a former employee of a major investment bank. Mohammed
Zina, a convicted insider trader and former Goldman Sachs analyst, must pay a
confiscation order or face an additional five years in prison.
A former
high-ranking Bank of America (BofA)
investment banker is at the center of a prolonged Justice Department
investigation examining whether confidential information was leaked ahead of a
major $8 billion energy sector acquisition, according to Bloomberg.
Jason
Satsky, who previously served as global head of power, utilities and energy
infrastructure investment banking at BofA, has been under investigation by the
Manhattan U.S. Attorney’s Office for more than a year regarding a potential
insider trading violation connected to an $8 billion takeover announced in
2022.
The
investigation focuses on whether Satsky improperly shared information about
South Jersey Industries’ acquisition by Infrastructure Investments Fund, a
private investment vehicle backed by JPMorgan. When announced, the deal sent
South Jersey Industries’ stock soaring 40%, according to people with knowledge
of the inquiry.
According
to Bloomberg, Bank of America placed Satsky on leave last year after learning
of the federal investigation. Though the bank has not determined any wrongdoing
on his part, Satsky was ultimately dismissed in March during a broader round of
job cuts at the financial institution.
The veteran
banker has not been charged with any offense, and the investigation has
continued for more than a year without action from prosecutors. His employment
record with the brokerage industry’s main regulator indicates involvement in a
pending Justice Department investigation of “securities transactions”
without providing further details.
You may
also like: Bank
of America Avoids $2 Billion Hit, Pays Four Times Less in Regulatory Clash from
2017
Unusual trajectory for
Wall Street investigation
The probe’s
timeline represents a departure from the typical pattern of financial industry
investigations. In many high-profile insider trading cases, authorities
typically inform financial institutions about investigations only in the final
stages, often resulting in immediate terminations that coincide with public
charges.
By
contrast, this investigation has unfolded gradually and quietly. When Satsky
initially went on leave last year, colleagues weren’t informed of the reason
behind his absence. The bank had no open internal investigations into him at
the time of his March departure.
The
transaction under scrutiny was one Satsky worked on after joining Bank of
America from Credit
Suisse in 2012. Bank of America represented South Jersey Industries, a
publicly traded natural gas utility holding company, while Infrastructure
Investments Fund, backed by JPMorgan, sought to take the business private in a
deal valuing it at $8.1 billion.
Others
liked: Billionaires’
Secret Swiss Accounts Just Cost UBS $511 Million
Rare focus on senior
banker
Insider
trading investigations targeting bankers of Satsky’s seniority are uncommon in
the financial industry. Senior dealmakers typically operate under strict
confidentiality protocols, understanding that information leaks can derail
transactions and damage both their institutions’ reputations and their own
careers.
Satsky, who
holds a law degree from Duke University, began his career in 1997 at what was
then known as Salomon Smith Barney, amassing nearly three decades of experience
in investment banking.
The
investigation continues amid shifting priorities at the Justice Department
following President Donald Trump’s return to the White House, creating
uncertainty around the outcome of pending white-collar investigations. This has
reportedly created tension among prosecutors in the Southern District of New
York as they await the arrival of Jay Clayton, Trump’s nominee to lead the
traditionally independent office known for its Wall Street enforcement actions.
The UK’s
FCA has also recently dealt
with the case of a former employee of a major investment bank. Mohammed
Zina, a convicted insider trader and former Goldman Sachs analyst, must pay a
confiscation order or face an additional five years in prison.
