Ex-Barclays CEO Jes Staley Barred From UK Finance Roles After Losing Appeal Over Epstein Relationship
Jes Staley, the former chief executive of Barclays Bank, has lost his legal challenge against a decision by the UK’s financial regulator to ban him from holding senior roles within the country’s finance sector. The ban, initially imposed in 2023 by the Financial Conduct Authority (FCA), stems from Staley’s conduct regarding his controversial relationship with the late convicted sex offender Jeffrey Epstein.
The ruling by a London tribunal on Thursday upheld the FCA’s finding that Staley had misled the regulator about the true nature of his ties to Epstein.
The Heart of the Case: Misleading the Regulator
The core dispute centered on a letter sent by Barclays to the FCA in 2019. This letter claimed that Staley did not share a “close relationship” with Epstein and that their contact had ceased “well before” he began his tenure as Barclays CEO in December 2015.
However, the FCA concluded that this letter was misleading. Lawyers for the regulator presented evidence to the tribunal suggesting that Staley and Epstein maintained a “friendship” and continued contact, even exchanging messages via Staley’s daughter, until at least February 2017 – significantly later than claimed in the letter.
The regulator found that Staley acted “recklessly and without integrity” by allowing this inaccurate information to be sent to them.
Tribunal Upholds Ban, Cites Lack of Remorse
The three-person tribunal unanimously dismissed Staley’s challenge, agreeing with the FCA’s assessment. Their ruling stated that Staley, 68, should have been “particularly careful” to ensure the accuracy of the communication with the regulator, given his senior position.
The tribunal characterized Staley’s breaches of FCA rules as a “serious failure of judgment.” They saw “no basis” to overturn the FCA’s decision, deeming the ban “a course of action reasonably open” to the authority. Adding to the rebuke, the judgment also noted that Staley had shown “no remorse for his conduct.”
Staley’s legal team had argued that he “never attempted to conceal” his relationship with Epstein, a claim the tribunal firmly rejected.
Staley ultimately left Barclays in 2021 amid intensifying scrutiny over his links to Epstein, who died by suicide in federal custody in August 2019, just a month after being arrested on sex trafficking and conspiracy charges.
Admitted Professional Relationship vs. Denied Personal Closeness
During earlier hearings, Staley acknowledged a “close professional relationship” with Epstein, stemming from his time as a private banker for the financier at JP Morgan Chase. However, he consistently maintained that their relationship was not personally close.
Financial Fallout Extends Beyond the Fine
In addition to the ban, the FCA had originally fined Staley £1.8 million (approximately $2.5 million). While the tribunal upheld the ban, it did reduce the financial penalty to around £1.1 million.
The regulatory action triggered significant consequences at his former employer. Following the FCA’s initial decision in October 2023, Barclays announced that Staley would forfeit bonuses and share awards valued at £17.8 million. Barclays had already suspended these deferred payments while the FCA’s investigation was underway.
Separately, JP Morgan Chase has faced its own repercussions related to Epstein. The bank agreed to pay $75 million to the U.S. Virgin Islands to settle claims that it facilitated Epstein’s sex-trafficking activities. JP Morgan had also previously sued Staley, alleging he concealed his personal dealings with Epstein from the bank, before reaching a confidential settlement with him.
The tribunal’s decision solidifies Staley’s exclusion from senior leadership roles in the UK financial sector, marking a definitive conclusion to his legal battle against the ban.
