Ex-Barclays boss Jes Staley banned from City over ties to Jeffrey Epstein

Barclays’ former chief executive, Jes Staley, has been permanently banned from holding senior positions in the City of London due to his connections to the late paedophile financier Jeffrey Epstein.

According to the Financial Conduct Authority (FCA), Mr Staley “recklessly misled” the watchdog and demonstrated “a lack of integrity” in his characterization of his relationship with Epstein.

This ruling sets a precedent, as Mr Staley becomes the first chief executive of a major British bank to face a regulatory ban.

In addition to the ban, Mr Staley has been fined £1.8 million and will have to forfeit up to £17.8 million in deferred pay.

The FCA claims that Mr Staley “recklessly approved a letter” from Barclays to the regulator, which contained two misleading statements about the nature of his relationship with Epstein.

Mr Staley was forced to resign from the top job at Barclays in 2021 after the board was presented with preliminary findings of the FCA’s investigation into his past associations with Epstein, who died in jail in 2019.

However, the details and findings of the investigation were only disclosed on Thursday.

This is not the first time Mr Staley has faced censure from City regulators. In 2018, he was fined over £600,000 for attempting to identify a whistleblower at Barclays.

Therese Chambers, co-head of enforcement at the FCA, stated: “A CEO must exercise sound judgment and set an example for staff. Mr Staley failed to do this.

“We believe he misled both the FCA and the Barclays board regarding the nature of his relationship with Mr Epstein.

“Mr Staley is an experienced industry professional and held a prominent position within financial services. It is appropriate 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.”

Mr Staley has appealed the FCA’s decision to the regulator’s independent upper tribunal, which means that the FCA’s findings are provisional until the tribunal reaches a verdict.

In a statement, Mr Staley said: “If I had known who [Jeffrey Epstein] really was, there is absolutely no doubt that I wouldn’t be in the position I am in today. Prior to taking on my former role, it was known that I had a relationship with [Jeffrey Epstein].

“Over the past 43 years, I have worked tirelessly and genuinely supported many people and social causes, which others may not have done.

“I am extremely disappointed with the FCA’s decision, and I will continue to challenge it. I will refrain from further comment until these proceedings conclude.”

Following the FCA’s announcement, Barclays’ shares fell over 3%, making it the third biggest decliner on the FTSE 100 index.

The FCA’s case against Mr Staley revolved around a letter sent by Barclays’ board to the FCA in October 2019, which the FCA alleges contained misleading statements about the relationship.

In August 2019, the regulator requested written clarification from Barclays on the measures taken to ensure that there were no improprieties in the relationship between Mr Staley and Epstein.

The letter from Barclays claimed that Mr Staley did not have a close relationship with Epstein. However, the FCA revealed that emails between the two men showed Mr Staley referring to Epstein as one of his “deepest” and “most cherished” friends.

Furthermore, the FCA stated that Mr Staley had ceased contact with Epstein well before joining Barclays in 2015. However, the FCA found evidence that Mr Staley had been in contact with Epstein just before his appointment at Barclays was announced in October 2015.

This decision adds to the mounting challenges faced by Mr Staley in his once highly regarded career.

Earlier this year

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