Former Barclays CEO Fined and Banned Over Epstein Relationship
The former CEO of Barclays, Jes Staley, has been slapped with a £1.8 million fine by the Financial Conduct Authority (FCA) and banned from holding senior management positions in the financial services industry. This follows allegations that he misled regulators and the bank's board about his relationship with disgraced financier Jeffrey Epstein.
According to the FCA, Staley "recklessly approved" a letter that was sent by Barclays to the FCA in 2019 that contained misleading statements about the nature of his relationship with Epstein and when they were last in contact with each other. The letter had claimed that Staley was not close to Epstein, while, in reality, he had described Epstein as one of his "deepest" and "most cherished" friends in emails. The FCA also discovered that Staley was in contact with Epstein just days before he was appointed CEO in October 2015, despite claims in the letter that their contact had ceased before Staley had joined the company.
Staley expressed his disappointment with the FCA's decision, vowing to challenge it. He stated, "If I had known who JE [Jeffrey Epstein] really was, there is absolutely no doubt that I wouldn't be in the position I am in today."
The FCA's joint enforcement director, Therese Chambers, emphasised the need for CEOs to exercise sound judgement and integrity. She said, "It is right to prevent him from holding a senior position in the financial services industry if we cannot rely on him to act with integrity by disclosing uncomfortable truths about his close personal relationship with Mr. Epstein."
Barclays responded to the FCA's findings by declaring Staley ineligible for - or should forfeit - bonuses and share awards totaling £17.8 million.
The FCA's investigation revealed that Staley had discussed Barclays' CEO role with Epstein multiple times between July and October 2015, despite telling Epstein that the matter was "very confidential" in an email.
This decision follows a recent confidential settlement reached between JPMorgan Chase and Staley, related to his role as head of private banking at JPMorgan when Epstein was a client. JPMorgan agreed to pay $75 million to settle claims by the U.S. Virgin Islands that the bank aided Epstein's sex trafficking, though the bank did not admit any wrongdoing.
The FCA's findings underscore the importance of transparency and integrity in the financial services industry, as it aims to ensure that senior executives uphold these values in their roles.
