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Former Barclays CEO Jes Staley failed on Thursday to skirt a lifelong banishment from the UK banking industry over his ties to Jeffrey Epstein — with a judge ruling the ban was an “inevitable consequence” of his association with the dead pedophile.
A UK tribunal upheld the decision by Britain’s top regulator, the Financial Conduct Authority, which ruled in 2023 that Staley, who previously had been a top banker at JPMorgan Chase, recklessly misled officials by claiming that he and Epstein were not close.
Judge Timothy Herrington ruled that Staley’s achievements at the helm of the British financial powerhouse did not lessen the severity of his misconduct.
“The loss of his longstanding career is an inevitable consequence of that conduct,” Herrington ruled.
“Bearing in mind the importance of Barclays as a financial institution, this was conduct that could have resulted in confidence in the financial system being adversely affected.”
Herrington added that Staley had “shown no remorse” over the way he acted in his dealings with the FCA.
The judge did, however, decide to reduce a fine slapped on the 68-year-old banker from £1.8 million ($2.47 million) to £1.1 million ($1.5 million).
The Boston-born banker said in a statement that he was “disappointed by the outcome and the time it took for this process to play out.”
He added: “I have worked tirelessly for my prior employers for the entirety of my career … The Tribunal recognised what they described as ‘my long and distinguished career’.”
The decision to appeal appeared to backfire for Staley, who admitted during the proceeding that he had sex with a member of Epstein’s staff in Epstein’s brother’s apartment.
The appeal tribunal also heard about a string of previously-reported emails between Staley and Epstein, in which the ex-Barclays CEO described their friendship as “profound”.
In one 2010 email chain, Staley told Epstein, “That was fun. Say hi to Snow White.” When Epstein asked, “What character would you like next?” Staley replied, “Beauty and the Beast.”
Staley had told the FCA’s attorneys that he had no recollection of those emails.
Staley’s case centered on a 2019 letter sent by Barclays Chair Nigel Higgins to the FCA, which approached the British bank after Epstein’s arrest on sex-trafficking charges.
British regulators said the letter contained two misleading statements: that Staley “did not have a close relationship” with Epstein and their last contact was “well before he joined Barclays in 2015”.
Staley said both statements were accurate and that he did not have the same relationship with Epstein after he ended his 34-year stint at JPMorgan where the late sex offender was once a major client.
Judge Herrington disagreed, ruling that “the evidence that Mr Staley had a close relationship with Mr Epstein is overwhelming.”
Staley’s spat with UK financial regulators over the case prompted his shock resignation in November 2021 and a reshuffle of Barclays’ leadership in what became a tumultuous period for the lender.
Herrington said the messages showed that Staley and Epstein had a “close personal relationship” and that Staley’s answers were “either evasive or defensive.”
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The Wall Street Journal revealed in April 2022 how the one-time Barclays CEO had travelled to the infamous ‘Epstein Island’ in 2009.
Little St James, in the US Virgin Islands, was the late sex pest’s private hideaway where he was accused of holding debauched sex parties with underage girls for the rich and famous.
Esptein’s girlfriend, the British media heiress Ghislaine Maxwell, was sentenced to 20 years in prison in 2022 for her role in helping him abuse young girls.
The Journal, in its original story three years ago, quoted emails between Staley and Epstein from a lawsuit filed in the Caribbean territory that same year.
“Presently, I’m in the hot tub with a glass of white wine,” the newspaper quoted Staley as writing to the disgraced moneyman in 2009.
“This is an amazing place. Truly amazing. Next time, we’re here together. I owe you much. And I deeply appreciate our friendship. I have few so profound,” he reportedly told Epstein.
Epstein was convicted of soliciting a minor for prostitution in 2008 and forced to register as a sex offender.
He was arrested in 2019, accused of orchestrating a scheme to traffic and sexually abuse girls, but was found hanging in his cell before he could face trial.
English (US)