FCA fines and bans ex Barclays CEO Jes Staley for Jeffrey Epstein letter

UK monetary regulator The FCA has determined to nice former CEO of Barclays, James (Jes) Staley, £1.8 million and ban him from holding a senior administration or vital affect operate within the monetary companies business.

Jes Staley stepped down as Barclays CEO in November 2021, amid an investigation into his relationship with Jeffrey Epstein.

The FCA has discovered that Jes Staley recklessly accredited a letter despatched by Barclays to the FCA, which contained two deceptive statements in regards to the nature of his relationship with Jeffrey Epstein and the purpose of their final contact.

Therese Chambers, joint Govt Director of Enforcement and Market Oversight on the FCA stated:

“A CEO must train sound judgement and set an instance to employees at their agency. Mr Staley failed to do that. We contemplate that he misled each the FCA and the Barclays Board in regards to the nature of his relationship with Mr Epstein.

“Mr Staley is an skilled business skilled and held a outstanding place inside monetary companies. It’s proper to stop him from holding a senior place within the monetary companies business if we can not depend on him to behave with integrity by disclosing uncomfortable truths about his shut private relationship with Mr Epstein.”

In August 2019, the FCA requested Barclays to clarify what it had completed to fulfill itself that there was no impropriety within the relationship between Mr Staley and Mr Epstein. In its response, Barclays relied on info provided by Mr Staley. Mr Staley confirmed the letter was truthful and correct.

The letter claimed that Mr Staley didn’t have a detailed relationship with Mr Epstein. In actuality, in emails between the 2 Mr Staley described Mr Epstein as one among his ‘deepest’ and ‘most cherished’ associates.

The letter from Barclays to the FCA additionally claimed Mr Staley ceased contact with Mr Epstein properly earlier than he joined Barclays. Nonetheless, Mr Staley was actually involved with Mr Epstein within the days main as much as his appointment as CEO being introduced on 28 October 2015. Mr Staley joined Barclays in December 2015.

Whereas Mr Staley didn’t draft the letter there was no excuse for his failure to right the deceptive statements when he was the one individual at Barclays who knew the total extent of his private relationship with Mr Epstein and the precise timings of his contact with him. The FCA has discovered that Mr Staley was conscious of the danger that his affiliation with Mr Epstein posed to his profession.

The FCA considers that, in failing to right the deceptive statements within the letter, Mr Staley recklessly misled the FCA and acted with an absence of integrity.