Ex-Barclays CEO James Staley Fined And Banned By FCA Over Ties To Jeffrey Epstein

The regulator said today (12 October) it had decided to impose a £1.8m fine and a ban preventing Staley from holding a senior management or significant influence function in the financial services industry.

The decision stemmed from the fact that the former Barclays CEO "recklessly approved" a letter sent by the bank to the regulator, which contained two "misleading statements" about the nature of Staley's relationship with Jeffrey Epstein and the point of their last contact, the FCA said.

In 2019, the regulator asked Barclays to explain the steps it had taken to assess there had been no impropriety in the relationship between Staley and Epstein.

Barclays faces criticism following Staley departure - reports

The FCA said the Barclays letter claimed the ex-CEO did not have a close relationship with Epstein and that he had ceased contact with the financier well before he joined the bank.

But the regulator found that in emails exchanged between the two, Staley described Epstein as one of his "deepest" and "most cherished" friends, and discovered the two were in contact at the time when the bank's board had approved his appointment as CEO in October 2015, before it was in the public domain.

The FCA acknowledged Staley did not draft the letter himself, but as the only person who knew the full extent of his relationship with Epstein, it was his responsibility to correct the misleading statements.

As a result, the regulator said Staley "recklessly misled the FCA and acted with a lack of integrity".

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: "A CEO needs to exercise sound judgement and set an example to staff at their firm. Staley failed to do this. We consider that he misled both the FCA and the Barclays board about the nature of his relationship with Epstein.

"Staley is an experienced industry professional and held a prominent position within financial services. It is right to prevent him from holding a senior position in the financial services industry if we cannot rely on him to act with integrity by disclosing uncomfortable truths about his close personal relationship with Epstein."

Barclays boss fined over £640k for 'serious errors of judgement' in whistleblowing case

The FCA noted Staley has referred the decision notice to the Upper Tribunal, meaning that any findings in the notice are to be considered provisional.

Following the regulator's decision, Barclays said in a regulatory notice today (12 October) that Staley should be ineligible for or forfeit a number of awards worth £17.8m, including his 2021 bonus award and unvested long-term incentive plan awards.

The bank's remuneration committee had previously suspended all of Staley's deferred bonus and LTIP awards pending further developments in the regulatory and legal proceedings related to his investigation by the FCA and PRA.

RECENT NEWS

Mitigating Risks In The Bond Market: Strategies For Uncertain Times

In today's volatile bond market, characterized by liquidity concerns and rising interest rates, effective risk managemen... Read more

UK High Street Banks Rake In £9.2 Billion In Interest On BoE Reserves: A Closer Look

In the intricate world of finance, where numbers often tell compelling stories, one recent figure stands out: £9.2 bill... Read more

Powell's Pledge: Federal Reserve Chair Signals Prolonged Period Of Higher Rates

Federal Reserve Chair Jerome Powell's recent statements have stirred significant interest in financial markets, particul... Read more

European Funds Body Throws Support Behind French Capital Markets Union: Implications For Brexit-Era Finance

In a significant development for European finance, a European funds body recently threw its support behind the French ca... Read more

Federal Reserve's Rate Decision: Navigating Economic Uncertainty

The recent decision by the Federal Reserve to adjust interest rates has sparked significant interest and speculation amo... Read more

Building Bridges: Strengthening Investor Confidence Through Enhanced Risk Data In Emerging Markets

In the dynamic landscape of emerging markets, investor confidence plays a pivotal role in driving economic growth and pr... Read more