The UK’s Financial Conduct Authority (FCA) has fined ex-Barclays Bank boss Jes Staley £1.8 million and banned him from senior roles in finance because of his behavior, linked to his relationship with late sex offender Jeffrey Epstein, who died in prison.
Mr Staley "recklessly approved" a letter sent by Barclays to the FCA which contained two misleading statements about the nature of his relationship with Jeffrey Epstein and the purpose of their latest contract, the financial watchdog explained on Thursday.
“A CEO must exercise sound judgment and set an example for his company’s employees. Mr. Staley failed to do so," the FCA said, adding that it felt the banker had misled both the FCA and the Barclays board about the nature of his relationship with Mr. Epstein.
The FCA recalled in August 2019 that it asked Barclays to explain what the British bank had done to ensure that there were no “irregularities in the relationship between Mr Staley and Mr Epstein.” Barclays responded solely on the basis of information provided by Mr Staley himself, assuring that the two men had no close personal relationship.
On the other hand, in emails with Mr. Epstein, Mr. Staley described him as one of his “dearest” friends.
Barclays’ letter to the FCA also stated that Mr. Staley had ceased all contact with Mr. Epstein before the former CEO joined the British bank, which also proved untrue.
Mr. Staley is contesting this decision before the High Court, which deals, among other things, with appeals against FCA decisions, the market authority said on Thursday.
