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.
Ex-BofA Senior Banker Under DOJ Scrutiny in Insider Trading Investigation
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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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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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.