Former Barclays boss Jess Staley was fined and banned over Jeffrey Epstein
- Staley fined £1.8m and banned for life
- FCA slams former Barclays boss over Epstein
- His bank takes away £18m in bonuses
Silence: Former Barclays boss Jess Staley
Former Barclays boss Jess Staley has been fined and banned from senior finance roles for misleading regulators about his friendship with pedophile Jeffrey Epstein.
In a damning report, the Financial Conduct Authority (FCA) said the banker acted “recklessly” and with a “lack of integrity” while at Barclays, insisting he was not close to the convicted sex offender.
Staley told regulators that his last contact with Epstein – who was also a friend of Prince Andrew – was “well before” he was appointed chief executive in October 2015.
In fact, emails between the two show that Staley described Epstein as one of his “deepest” and “dearest” friends. He was also in contact with Epstein three days before his Barclays appointment was announced.
Yesterday the FCA fined Staley £1.8m and banned him from senior finance positions.
“Mr Staley recklessly misled the FCA and acted with a lack of integrity,” it said. In response, Barclays said it would refund or cancel £17.8m in bonuses and pay that Staley is still due.
Therese Chambers, joint executive director of enforcement and market supervision at the FCA, said: “The chief executive must exercise sound judgment and lead by example to staff. Mr. Staley failed to do so.
“We believe he misled both the FCA and the Barclays board about the nature of his relationship with Mr Epstein.”
She added: “It is right to prevent him from taking a top job in the financial services industry if we cannot rely on him to act with integrity by revealing uncomfortable truths about his close personal relationship with Mr Epstein.”
Staley and Epstein met at the turn of the century, when the former was the head of JP Morgan Bank and the latter was a client.
Epstein was arrested in the US on sex trafficking charges in July 2019 and committed suicide in prison the following month. He was previously convicted of child prostitution charges in 2008.
In August 2019, the FCA asked Barclays what it had done to ensure there was no impropriety in the friendship between Staley and Epstein.
In a letter approved by Staley, Barclays said it was not a close friendship and their last contact was “well before” the 2015 appointment as chief executive.
The FCA said these two claims were “inaccurate and misleading”. Staley plans to appeal the decision.
The regulator released excerpts of emails between Staley and Epstein as evidence.
In November 2009, a year after Epstein’s 2008 conviction, Staley wrote: “I owe you so much. And I deeply value our friendship. I have several that deep.
In January 2015, Staley said: “The strength of the Greek army was that its core stood shoulder to shoulder and would not flee or break, whatever the threat. This is us. In October 2015, before Barclays announced his appointment, he said: “You have never wavered in our friendship over the past three years. It means a lot (sic) to me too.
The pair discussed Staley’s career in October, including confidential information that he had secured the top job at Barclays, contrary to claims made in the letter to the FCA.
The regulator said Staley had misled Barclays.
He had an “interest in giving Barclays the impression of greater distance … than was the case” and was “aware of the risk” their relationship “posed to his reputation and career”, it said. Through his lawyer, Staley said: “If I had known who Jeffrey Epstein really was, there is absolutely no doubt that I would not be in the position I am in today.
“Prior to my previous role, it was known that I had a relationship with Jeffrey Epstein. I am very disappointed with the FCA’s decision and will continue to challenge it.”