Barclays: Regulators probe chief government over Epstein hyperlinks

Barclays chief executive Jes StaleyImage copyright Getty Images
Image caption Barclays chief government Jes Staley has the complete confidence of the board, the financial institution stated

UK regulators are probing Barclays chief government Jes Staley’s hyperlinks with intercourse offender Jeffrey Epstein.

The probe by the Financial Conduct Authority and Prudential Regulation Authority will give attention to Mr Staley’s “characterisation to the company of his relationship” with Epstein.

Barclays stated Mr Staley has the “full confidence” of the board.

Epstein died in a New York jail cell as he awaited his trial on intercourse trafficking costs.

The Financial Conduct Authority oversees dangerous behaviour within the City, whereas the Prudential Regulation Authority seems into monetary stability.

In a press release to the inventory market, Barclays stated: “As has been widely reported, earlier in his career Mr Staley developed a professional relationship with Mr Epstein. In the summer of 2019, in light of the renewed media interest in the relationship, Mr Staley volunteered and gave to certain executives, and the chairman, an explanation of his relationship with Mr Epstein.”

Barclays added that Mr Staley stated he had had no contact with Epstein since becoming a member of his present employer in December 2015. The financial institution added: “The relationship between Mr Staley and Mr Epstein was the topic of an inquiry from the Financial Conduct Authority, to which the corporate responded.

“The FCA and the Prudential Regulation Authority subsequently commenced an investigation, which is ongoing, into Mr Staley’s characterisation to the company of his relationship with Mr Epstein and the subsequent description of that relationship in the company’s response to the FCA.”


However, the information shall be a contemporary blow to Mr Staley who’s making an attempt to rebuild his picture after being sanctioned for trying to unmask the identification of a whistleblower at Barclays.

The financial institution was fined $15m (£11.6m) within the US and Mr Staley was fined £642,430 within the UK for breaching rules by looking for whoever raised issues over an government Mr Staley employed.

The financial institution obtained two letters in 2016 criticising the choice and elevating issues in regards to the government’s expertise. Instead of being handed to the financial institution’s investigations crew, one of many letters was distributed amongst senior managers, together with Mr Staley.

Barclays additionally reduce his bonus by £500,000.

In one other embarrassing episode in 2017, Mr Staley fell for an electronic mail prank when a disgruntled buyer pretended to be his boss on the time, former chairman John McFarlane.

Mr Staley exchanged a number of emails with the imposter, who used a Gmail electronic mail handle, the Financial Times reported.

Under his stewardship, the financial institution’s shares have misplaced 25% of their worth. The shares have been down greater than 3% in early buying and selling on Thursday because the financial institution reported that pre-tax income for the yr jumped 25% to £4.4bn.

It’s hardly shocking that Jes Staley had enterprise hyperlinks to Jeffrey Epstein – Mr Staley ran the non-public wealth division of JP Morgan, one in every of America’s largest banks for a number of years, taking care of the non-public investments of rich Americans.

That’s precisely the enterprise by which Mr Epstein was an enormous participant, and the New York Times has reported that Mr Staley was one in every of his key contacts, with a number of of the deceased financier’s large purchasers being referred to JP Morgan.

This morning Barclays stated in an announcement to the Stock Exchange that Mr Staley had volunteered details about that relationship to the Barclays board – however that the Financial Conduct Authority, and the Prudential Regulation Authority, Britain’s two largest monetary watchdogs, have been now precisely what he stated.

The key phrase in Barclays’ assertion is that investigation is into how the connection was “characterised” – which infers that the investigators need to work out whether or not Mr Staley and Barclays gave a very correct image.

This doesn’t essentially imply large bother for Mr Staley, and the Barclays board has given him a vote of confidence. Regulators, nonetheless, take a dim view of financial institution bosses who do not play ball from the beginning, and Mr Staley has blotted his copybook earlier than.