Former Barclays boss Jes Staley banned over Epstein scandal

12th Oct 2023 11:51

(Sharecast News) - The former chief executive of Barclays has been banned and fined nearly £2m by the City watchdog over his relationship with disgraced financier Jeffrey Epstein.

In a statement released on Thursday, the Financial Conduct Authority said it had decided to bar Jes Staley from holding a senior management or any other role of significant influence in the financial services industry. It also fined him £1.8m.

Following the announcement, Barclays said it had concluded that Staley was now ineligible for, or should forfeit, bonuses and other awards totalling £17.8m.

Staley is appealing the FCA's ruling to the Upper Tribunal.

The FCA said Staley had misled both itself and the Barclays board over his relationship with Epstein, who died in prison in New York in 2019 while facing charges of sex-trafficking involving under-age girls. Epstein had already served a 13-month prison sentence in 2008 for soliciting prostitution from a minor.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: "A chief executive needs to exercise sound judgement and set an example to staff at their firm. Mr Staley failed to do this.

"It is right to prevent him from holding a senior position within financial services if we cannot rely on him to act with integrity by disclosing uncomfortable truths about his close personal relationship with Mr Epstein."

The FCA began its investigation into whether Staley was a fit and proper person to be a senior banker in January 2020.

It found that Staley, who left Barclays in November 2021, had "recklessly approved" a letter sent by the bank to the regulator that contained two misleading statements.

The letter claimed Staley did not have a close relationship with Epstein, yet in emails between the two men, Staley referred to him as one of his "deepest" and "most cherished" friends.

The letter further claimed Staley had ceased contact with Epstein well before joining the blue chip bank. But the FCA said the two men were in touch in the days leading up to him being named Barclays chief executive in October 2015.

The FCA said that while Staley did not draft the letter, there was "no excuse" for him not correcting the misleading statements it contained.

Staley has long denied knowledge of Epstein's alleged crimes. In a statement, Staley said he was "very disappointed" by the FCA's decision, adding: "If I had known who Jeffrey Epstein really was, there is absolutely no doubt that I wouldn't be in the position I am today."

Prior to joining Barclays, Staley worked for three decades at JP Morgan Chase, including heading up its asset and wealth management division. Epstein was a client of JP Morgan.

The FCA said that as Staley was appealing the decision notice, all findings were provisional.