One of the world’s largest banks, Barclays, is in crisis over past relationships between its CEO, Jes Staley, and financial and sex offender Jeffrey Epstein, who committed suicide in jail in 2019.
Staley resigned this Monday, November 1, as CEO of Barclays due to pressure from regulatory bodies, just before a report was made public about his relationship with the American financier, who was convicted of sex trafficking of minors.
Barclays said Staley is leaving “in light of conclusions” made by UK regulators in their investigation into what the now-former CEO told the bank and the state about his link to Epstein.
Barclays shares tumbled more than 3.1 percent in early trading Monday in London.
The bank said the investigation found no evidence that “Staley saw or was aware of any of Epstein’s sex crimes.” In a letter to employees, Staley wrote explaining the reason for his resignation: “I don’t want my response to these issues to be a distraction from the fantastic work you do every day to support our clients.”
While there was no official communication from the UK Financial Conduct Authority and Regulatory Authority, Wall street journal says regulators believe there was a “clear lack of transparency about the relationship” between Staley and Epstein.
Staley always said that his relationship with Epstein was professional, beginning in 2000 when he was a director of JPMorgan Chase & Co and the financier was a client.
In February 2020, he told reporters that his interaction with Epstein began to “decline” after he left JPMorgan in 2013, and that the last time he had contact with him was in 2015, the year he became CEO. from Barclays.
Epstein was found dead in 2019 in a New York detention center where he was awaiting trial on sex trafficking charges.
The Wall Street Journal reported in 2020 that Staley visited Epstein’s private Caribbean island twice on his own boat.
The bank disclosed the existence of the FCA investigation in February 2020. At the time, Staley said of Epstein: “I thought I knew him well and he didn’t. In hindsight, with what we all know now, I am sorry to have had any connection with Jeffrey Epstein. “
Barclays says board members are “disappointed” that Staley, 64, resigned. A few months ago, he indicated that he intended to stay in the bank “for a couple more years.”
The bank’s share price has fallen 11 percent since Staley took office.
Barclays is the latest UK investment bank to compete on Wall Street with US giants like Goldman Sachs Group and JPMorgan.
He acquired parts of Lehman Brothers during the financial crisis and has a large credit card business in the United States.
During his tenure, Staley simplified operations and eliminated thousands of jobs. He appointed other former JPMorgan bankers to positions of responsibility, including CS Venkatakrishnan, who will be the one to replace him.