The remarkable dust-up between Barr and Berman, who garnered a reputation for protecting the Manhattan office’s independence, cast an immediate shadow over Clayton’s potential appointment. Many thought Clayton looked like a pawn in the larger dispute between Berman and the Trump administration.

The standoff ended on Saturday when Berman agreed to leave and his deputy was named as his acting successor. Still, the process was chaotic; Trump himself was forced to fire Berman, and Barr backed off a plan to put in a different official to run the office until Clayton was confirmed. And New York’s two U.S. senators, who by tradition are consulted on major nominations involving the state, expressed outrage over the machinations.

Schumer’s Scorn
Senate Minority Leader Charles Schumer and Senator Kirsten Gillibrand, both Democrats, criticized the decision to fire Berman and called for Clayton to pull out of contention for the job. Schumer didn’t mince words, saying in a statement that the SEC chairman needed to “stand up to this corruption, withdraw his name from consideration, and save his own reputation from overnight ruin.”

Adding to Clayton’s troubles, Senate Judiciary Committee Chairman Lindsey Graham, a Republican and close Trump ally, indicated Saturday that he wouldn’t move ahead with the nomination unless Schumer and Gillibrand signed off on it, citing traditional committee procedure.

As the fast-moving events unfolded, Clayton was considering his options and consulting with close friends and advisers, the people said.

While he doesn’t blame anyone in the Trump administration, Clayton was uneasy about Friday’s rollout and wasn’t under the impression that Berman would fight the move, the people said. There’d been talk that Berman would be offered a job running the Justice Department’s civil division.

Shortly after midnight on Saturday morning, Clayton sent out a brief email to the SEC’s 4,000-plus employees, pledging that “pending confirmation, I will remain fully committed to the work of the commission.” Some at the agency said that the note, a copy of which was reviewed by Bloomberg News, was uncharacteristically short for Clayton, who’s known for sending lengthy messages to the staff.

‘Meaningful Period’
On Sunday, Clayton sent another message to SEC employees, saying that family considerations and a desire to do more public service made him “grateful to be considered for the position by the attorney general and excited by the opportunity.” However, he added that “this is not a goodbye” and noted “we will be together for at least some meaningful period of time.”

As the weekend wore on, some of Clayton’s confidants saw little upside for him to stick with the nomination process, especially after it became clear that his chances to get Senate approval were dismal, the people said. One option being discussed would be for him to acknowledge that likelihood and announce that he plans to remain at the SEC for the remainder of Trump’s term.

Some people he consults with, however, are suggesting that Clayton sit tight for now and wait to see what happens, the people said. There could be less pressure now that Berman has stepped down, they said.