Barclays CEO resigns over affair with pedophile Jeffrey Epstein

Barclays chief executive Jes Staley will step down as UK financial regulators investigate his links to the deceased Jeffrey Epstein of child sex abuse and sex offenders. Although Staley called them professionals, they could have been more than that.

Barclays on Monday announced an agreement with Staley to leave, after receiving on Friday the initial results of an investigation by the Financial Conduct Authority (FCA, for its short English) and Prudential Regulatory Authority (PRA), which began in 2019. According to the Financial Times, emails between Staley and Epstein “suggest that their relationship was more cordial than Staley, who described her as a professional,” she claimed.

Staley ran private banking at JP Morgan when Epstein was a client at the turn of the century. “He was already a client. The relationship continued during my time at JPMorgan, but when I left it it fizzled out significantly,” Staley told reporters in February 2020. “Obviously I thought I knew him well, but I didn’t. And of course, looking back and with everything we know now, I feel very sorry for having any relationship with Jeffrey Epstein.”

Suspicions about Staley’s description of the relationship with pedophilia (which ended in his novel in the second half of 2015) arose after US regulators handed emails between the two men to the FCA and PRA, received from JP Morgan. British regulators concluded there was reason to investigate.

Surprise for the market

“In light of these findings and Mr Staley’s intention to challenge them, the Board of Directors and Mr Staley have agreed to step down as Group CEO and Director of Barclays,” Barclays told The Guardian on Monday, citing a British website. The bank’s management declares its “disappointment” and commends Staley’s management since December 2015. The FCA and PRA declined to comment.

“The news is a surprise to the market,” said Victoria Scholar, chief investment officer at Interactive Investor Consultation. It is, in his opinion, a huge blow to Barclays, who has been recovering at a good pace from the losses caused by Covid-19. The bank’s shares started the day down 1.7%.

For Hargreaves Lansdowne analyst Susannah Streeter, Staley’s downfall “demonstrates that the investigation’s findings are critical,” citing a “lack of transparency.” The banker’s intent to challenge them makes guessing a long process.

Exit package includes 12 months salary

Emails show that Staley kept in touch with the millionaire seven years after his conviction for child prostitution, having visited him several times in Florida and on a private Caribbean island. This is despite him stating, upon joining Barclays, that their relationship was only professional.

Barclays notes that the investigation does not indicate that Staley was aware of the crimes of Epstein, who died in August 2019 in his New York cell, apparently as a suicide. Millionaire has never been tried.

Staley will be replaced by Barclays Global Markets Director CS Venkatakrishnan, better known as Venkat. Previously, he was Head of Global Markets and Co-Head of Barclays Bank plc since October 2020, and Head of Group Risk between 2016 and 2020. He previously worked at JPMorgan.

The outgoing Staley will receive 12 months’ salary (£2.4m, €2.8m) and other benefits. The bank will pay for your repatriation if necessary.

CNN recalls that the veteran was already in trouble with British regulators in 2018. He was then fined $870,000 by the FCA for trying to identify a Barclays whistleblower. Came to apologize and admit the “mistake”.