Barclays CEO Jes Staley quits after investigation into links with Jeffrey Epstein

The investigation by the Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) was disclosed by Barclays in early 2020 and targeted on how Staley had characterised the connection to his employer.

Barclays and Staley have been made conscious on Friday night by the FCA and the PRA of the preliminary conclusions of their investigation.

“In view of those conclusions, and Mr Staley’s intention to contest them, the board [of Barclays] and Mr Staley have agreed that he will step down from his role as group chief executive and as a director of Barclays,” Barclays mentioned in its assertion on Monday.

“It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein’s alleged crimes, which was the central question underpinning Barclays’ support for Mr Staley following the arrest of Mr Epstein in the summer of 2019,” the financial institution added, saying it was not applicable for it to remark additional.

A spokesperson for the FCA and PRA mentioned the regulators “do not comment on ongoing investigations or regulatory proceedings” past confirming the actions detailed within the assertion from Barclays.

Relationship started at JPMorgan

Epstein, a multimillionaire and convicted pedophile who was charged with sex trafficking by US federal prosecutors, died in a New York jail cell in 2019 whereas awaiting trial.
Staley had been operating Barclays since late 2015. Prior to that he labored for greater than 30 years at JPMorgan (JPM), the place he served as head of its funding banking division. His relationship with Epstein dated again to 2000, when he turned head of JPMorgan’s non-public financial institution.

“He was already a client. The relationship was maintained during my time at JPMorgan, but as I left Morgan it tapered off quite significantly,” Staley instructed reporters on a name in February 2020.

JPMorgan offers Chase accounts to UK consumers in first global move

Asked then whether or not he regretted his relationship with Epstein, Staley mentioned: “Obviously I thought I knew him well and I didn’t. And for sure with hindsight of what we all know now I deeply regret having had any relationship with Jeffrey Epstein.”

Staley had instructed the Barclays board that he had no contact with Epstein since turning into Barclays CEO in December 2015.

“Although detail is limited, it appears regulators believe there was a distinct lack of transparency over this relationship,” mentioned Susannah Streeter, senior funding and markets analyst at UK dealer Hargreaves Lansdown. “It’s understood Mr Staley will contest the conclusions, and clearly the board want to distance Barclays from what could be a long drawn out process.”

The Wall Street veteran had run into hassle with UK regulators beforehand. In 2018, the FCA fined him about $870,000 after it emerged that he had tried to determine a whistleblower on the financial institution. Staley had tried to seek out out who had authored an nameless letter that raised issues a few senior Barclays worker.

He apologized for his conduct and admitted that he had “made a mistake.” Barclays clawed again about $680,000 of his 2016 pay over the incident.

Barclays shares drop

But his loss is an enormous blow to one of many few European companies nonetheless dedicated to competing with the most important American funding banks.

Barclays shares fell by as a lot as 3.7% in London and have been final buying and selling down 1.5%. They’ve jumped 35% to this point this 12 months, a part of a broader rally in financial institution shares fueled by the financial restoration.

Barclays wants to compete on Wall Street. That just got easier

“The [Barclays] board is disappointed at this outcome,” the financial institution mentioned in its assertion. “Mr Staley has run the Barclays Group successfully since December 2015 with real commitment and skill. Supported by the senior team which he largely helped build and on whom the Barclays Group will be relying for the future, Mr Staley clarified the Barclays Group’s strategy, transformed its operations and materially improved its results. “

With impact from November 1, 2021, C.S. Venkatakrishnan will take over as Barclays CEO, topic to regulatory approval. Venkat, as he’s identified on the financial institution, beforehand served as head of worldwide markets at Barclays from October 2020 and as group chief danger officer from 2016 to 2020. Prior to becoming a member of Barclays in 2016, he labored at JPMorgan Chase from 1994.

Staley will obtain his annual mounted pay value £2.4 million ($3.3 million) in money and shares, plus a pension allowance of £120,000 ($164,000) and different advantages till October 31, 2022. He may also be eligible for the prices of relocating to the United States.

“No decisions have yet been made in respect of any further remuneration payments to be made to Mr Staley,” Barclays added.

Leave a Reply

Your email address will not be published. Required fields are marked *