FCA Fines and Bans Ex-Barclays Boss Over Epstein Disclosure Failings

'While Mr Staley did not draft the letter there was no excuse for his failure to correct the misleading statements,' the regulator said in a statement today

Dow Jones 12 October, 2023 | 12:04PM
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Jes Staley

The Financial Conduct Authority (FCA) has fined and banned the former chief executive of Barclays on Thursday over his disclosures relating to his personal links to Jeffrey Epstein.

The FCA today fined Jes Staley £1.8 million and banned him from holding a senior management or significant influence function in the financial services industry.

Epstein died by suicide in a federal jail in 2019, awaiting trial on sex-trafficking charges. His relationships with several prominent financial and political leaders have been scrutinised ever since allegations emerged in the late 2000s that he was involved in prostitution.

In a statement, the regulator said Staley "recklessly approved" a letter sent by Barclays to the FCA, which contained two misleading statements over his relationship with Epstein.

Sent in 2019, the letter claimed Staley did not have a close relationship with Epstein, when in emails Staley called Epstein one of his deepest and most cherished friends. The letter also said Staley ceased contact with Epstein well before he joined Barclays. He was in fact in contact with Epstein in the days leading up to his CEO appointment in 2015.

"While Mr Staley did not draft the letter there was no excuse for his failure to correct the misleading statements when he was the only person at Barclays who knew the full extent of his personal relationship with Mr Epstein and the specific timings of his contact with him," the FCA said.

"The FCA has found that Mr Staley was aware of the risk that his association with Mr Epstein posed to his career," it added.

Staley was previously a senior executive at JP Morgan, which recently agreed to pay $75 million (£61 million) to settle Epstein-related litigation by the US Virgin Islands. JPMorgan separately reached a settlement with Staley.

By Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. It includes UK-appropriate edits for UK audiences

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