Barclays CEO Jes Staley steps down after Epstein investigation a job

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Barclays chief Jes Staley attends a “Global Britain” meeting of business leaders in Downing Street last month Photo: Jeff Gilbert/Rex/Shutterstock

Good morning, and welcome to our renewed coverage of the global economy, financial markets, the eurozone and business.

We start with some breaking news – Barclays CEO Jes Staley is stepping down, following an investigation into his dealings with disgraced sex offender and financier Jeffrey Epstein.

The move follows an investigation into the way Staley described his relationship with Epstein to Barclays, which began early last year.

Barclays said in a statement:

Barclays and Mr. Jes Staley, Group Chief Executive Officer, were informed on Friday evening of the preliminary findings of the Financial Conduct Authority (FCA) and the PRA regarding their investigation into Mr Staley’s characterization of Barclays regarding his relationship with Mr. Jeffrey Epstein, and the subsequent description thereof. Relationship in Barclays’ response to the Financial Conduct Authority (FCA).

In light of these conclusions, and Mr. Staley’s intent to contest them, the Board of Directors and Mr. Staley have agreed to step down as Group Chief Executive Officer and as Director of Barclays Bank.

It should be noted that the investigation did not find that Staley had seen, or had knowledge of, any of Epstein’s alleged crimes, which was the central question supporting Barclays’ support for Staley following Epstein’s arrest in the summer of 2019.

It emerged again in February 2020 that an investigation had been opened into Staley’s characterization of his dealings with Epstein, after emails between the two men were delivered to regulators in the UK by their US counterparts.

Staley, who joined Barclays in 2015, worked with Epstein during his time at JPMorgan. He took over the management of JPMorgan’s private bank in 2000, when Epstein was already a client.

Staley remained in contact with Epstein for seven years after the financier was convicted of soliciting prostitution by a minor in 2008; He visited Epstein in Florida in 2009 while still serving his sentence and out on release work, and sailed his private yacht, Bekia, to Epstein’s private Caribbean island in 2015.

Staley said his last contact with the financier was in “mid to late 2015”, shortly before he took over as Barclays CEO in December.

Barclays adds that they are “disappointed” with this finding:

The board is disappointed with this result. Mr. Staley has successfully managed the Barclays Group since December 2015 with genuine commitment and skill. With the support of the first team he greatly helped build and upon which the Barclays Group will depend in the future, Staley clarified the Barclays Group’s strategy, changed its operations and materially improved its results.

The regulatory process has yet to run its full course and it is not appropriate for Barclays to comment more on initial conclusions.

Staley will be replaced by CS Venkatakrishnan, better known as Venkat, Head of Global Markets at Barclays, who was appointed Barclays Co-Chair in September 2020.

Bank says:

The board has had a succession plan in place for some time, including a review of potential external appointees, and identified Venkat as the preferred candidate for the position over a year ago, as a result of which he moved from the position of Group Head of Risk to the position of Head of Global Markets.

More to follow…

Agenda 9.30am GMT: UK Manufacturing PMI for October 1.45pm GMT: US Manufacturing PMI for October 2pm GMT: US construction spending for September.

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