Ex-Barclays boss Jes Staley banned over Epstein scandal

Jes Staley could lose up to £17.8m in bonuses and awards from Barclays

Barclays' former boss has been banned from holding senior positions in the UK after he mischaracterised his relationship with convicted sex offender Jeffrey Epstein.

Jes Staley has also been fined £1.8m, said the Financial Conduct Authority.

The regulator said Mr Staley had claimed not to be close to Epstein when, in reality, emails suggested he viewed him as a "cherished" friend.

Mr Staley intends to appeal the FCA's decision.

Additionally, Barclays said on Thursday that Mr Staley should forego bonuses and long-term share incentives totalling £17.8m following the FCA's findings.

Epstein killed himself in 2019 awaiting trial on sex-trafficking charges. He was convicted in 2008 for soliciting sex from a minor and sentenced to 13 months in prison.

Mr Staley has denied knowing about Epstein's crimes.

The regulator said Mr Staley had "recklessly" approved a letter sent by Barclays to the FCA which contained two misleading statements about his relationship with Epstein.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA said: "A chief executive needs to exercise sound judgement and set an example to staff at their firm. Mr Staley failed to do this.

"We consider that he misled both the FCA and the Barclays board about the nature of his relationship with Epstein."

She added that it was right to prevent him from holding a senior position in the financial services industry if he could not be relied on "to act with integrity by disclosing uncomfortable truths about his close personal relationship with Epstein".

In August 2019, the FCA had asked Barclays what it had done to satisfy itself that there had been no impropriety in the relationship between Mr Staley and Epstein.

The late financier was a client of JP Morgan Chase, the US investment bank, where Mr Staley worked for three decades including heading up its asset and wealth management division.

In its response to the FCA, Barclays wrote a letter based on information supplied by Mr Staley that he did not have a close relationship with Epstein. It also stated that Mr Staley ceased contact with Epstein well before he joined Barclays.

Mr Staley said the letter was "fair and accurate".

But emails between the two men showed that Mr Staley had described Epstein as one of his "deepest" and "most cherished" friends.

In addition, Mr Staley had been in contact with Epstein in the days leading up to his appointment as chief executive being announced on 28 October 2015.

Mr Staley began his role at the bank two months later.

The FCA said that while Mr Staley did not draft the letter personally, there was "no excuse for his failure to correct the misleading statements". In doing so, it added, he "recklessly misled the FCA and acted with a lack of integrity".

A spokesman for the Bank of England's Prudential Regulation Authority, said: "We support the FCA's decision announced today against Jes Staley.

"It is imperative that senior managers act with integrity and are open and co-operative with the regulators."

Last month, Mr Staley reached a settlement with JP Morgan over claims that he failed to fully disclose the extent of his relationship with Epstein while an employee. Terms of the deal were not disclosed.

The bank had sued Mr Staley, alleging he was responsible for its decision to do business with Epstein and should be held responsible for any damages it incurred through related lawsuits.

In response, Mr Staley said he had no decision-making power over the late financier's accounts and the allegations extended beyond his time at the bank.

In an earlier filing, his lawyer had described allegations as "slanderous" and the potential damages "astronomical", writing that the stakes could "hardly be higher" for Mr Staley as he sought to disprove the claims.