Barclays CEO Under Investigation For Ties With Jeffrey Epstein

Financial regulators in Britain are investigating Barclays PLC's BCS CEO Jes Staley for his ties to the deceased sex offender Jeffrey Epstein. 

What Happened

The Financial Conduct Authority and the Prudential Regulation Authority are investigating links between Staley and Epstein, according to Reuters. Barclays has said that its board is also looking into media reports concerning Staley’s relationship with Epstein. 

The bank believes that Staley has been “sufficiently transparent” and the board has decided to unanimously recommend his name again for re-election as the chief executive. The vote would be held in May 2020.

Staley developed a “professional relationship with Mr. Epstein.” said Barclays in a statement. They added that in the summer of 2019, Staley “volunteered” and gave to “certain executives” as well as the chairman an explanation about his relationship with Epstein. 

Why It Matters

Staley has been under fire earlier for trying to find a whistleblower at Barclays. He was fined GBP 642,430 in the UK personally, while Barclays was fined GBP 11.6 million ($15 million). 

Last July, the New York Times revealed the nature of the relationship between Staley and Epstein. It was disclosed that Staley visited Epstein in prison when he was serving time for solicitation of prostitution.

Staley worked at JP Morgan Chase & Co. JPM before he joined Barclays, where Epstein was a client. Staley was reported to have said, “Obviously I thought I knew him well,” Staley told journalists. “I didn’t. For sure, with hindsight of what we all know now, I deeply regret having had any relationship with Jeffrey Epstein.”

Price Action

Barclays stock closed 0.11% lower at $9.21 on Wednesday. 

The shares traded 1.19% lower at $9.10 in the pre-market session on Thursday.