Jason Satsky, a former high-ranking Bank of America dealmaker who previously headed the power, utilities, and energy infrastructure investment banking division, is currently under investigation by the Justice Department for insider trading. The US Attorney’s Office in Manhattan is examining whether Satsky provided an illegal tip ahead of an $8 billion takeover that was announced in 2022. Satsky's team at Bank of America had advised an energy company involved in the deal, which was taken private by an investment firm backed by JPMorgan.
In a related development, the Financial Times reports that the Securities and Exchange Commission (SEC) has formally accused Satsky of insider trading. The SEC alleges that Satsky tipped off a friend, enabling them to make $18.5 million in illegal profits. This significant sum was reportedly gained in connection with a planned takeover of South Jersey Industries.
This probe follows Satsky's departure from Bank of America in March as part of broader job cuts. The allegations against him involve potential breaches of internal "Chinese walls" and insider trading rules, similar to an unrelated incident in India where a Bank of America unit was accused by India's markets regulator, SEBI, of violating insider trading rules in a 2024 share sale.
