In a significant legal development, Jes Staley, formerly at the helm of Barclays Bank, has failed to overturn a decision by the UK’s financial authorities preventing him from assuming senior financial roles in Britain. This decision springs from the controversy surrounding his misleading statements about his association with Jeffrey Epstein, the late convicted sex offender.
The issue originally involved a communiqué from Barclays to the Financial Conduct Authority (FCA) in 2019, asserting that Staley did not maintain a “close relationship” with Epstein. The letter also incorrectly claimed that their last interaction occurred “well before” Staley began his tenure at Barclays in December 2015. Staley stepped down from his position at Barclays in 2021 amidst scrutiny over his connections with Epstein, who had died by suicide in federal custody in August 2019 after facing charges related to sex trafficking and conspiracy.
The FCA determined that Barclays’ letter misrepresented the facts and that Staley’s actions were both “reckless and without integrity.” During a tribunal hearing in March, the regulator brought evidence suggesting that Staley had a friendship with Epstein and continued to maintain contact, partly through Staley’s daughter, at least until February 2017.
The tribunal criticized Staley, 68, for not ensuring the accuracy of the statements directed to the FCA, highlighting a “serious failure of judgment” in his conduct. Consequently, the tribunal found no grounds to challenge the FCA’s prohibition of Staley, viewing it as a “reasonable” action by the regulator.
The judgment also highlighted Staley’s lack of “remorse” over his actions. Apart from being barred from senior roles, Staley, who is of American citizenship, had initially been subjected to a fine amounting to 1.8 million pounds ($2.5 million). However, the tribunal slightly eased this penalty, reducing it to approximately 1.1 million pounds.
Staley’s legal team contended that he “never attempted to conceal” his interactions with Epstein. This argument was not accepted by the three-member tribunal in London. Throughout the hearings earlier in the year, Staley acknowledged a close professional connection with Epstein, as he had served as Epstein’s private banker during his time at JP Morgan Chase. He, however, insisted that their relationship was strictly professional and not personal.
Following the FCA’s October 2023 ruling, Barclays announced that Staley would forfeit bonuses and share awards amounting to 17.8 million pounds. The bank had already put a hold on all deferred bonuses and long-term share awards pending the regulator’s investigation.
In a related development, JP Morgan Chase agreed to a $75 million settlement with the U.S. Virgin Islands to resolve accusations that it facilitated Epstein’s illicit activities. The bank also reached an undisclosed settlement with Staley after accusing him of not disclosing his personal affiliations with Epstein during his employment.