The Monetary Conduct Authority (FCA) has fined former Barclays boss James Staley, £1.8m and banned him from holding high jobs within the finance business after discovering he misled them over his relationship with convicted intercourse offender Jeffrey Epstein.
The FCA discovered that the chief ‘recklessly permitted’ a letter despatched by Barclays to the FCA, which contained two deceptive statements in regards to the nature of his relationship with Jeffrey Epstein which hid the final contact he had with the disgraced financier.
It additionally concluded the financial institution boss acted “with a scarcity of integrity.”
Therese Chambers, joint Govt Director of Enforcement and Market Oversight on the FCA stated: “A CEO must train sound judgement and set an instance to workers at their agency. Mr Staley failed to do that. We take into account that he misled each the FCA and the Barclays Board in regards to the nature of his relationship with Mr Epstein.
“Mr Staley is an skilled business skilled and held a outstanding place inside monetary companies. It’s proper to forestall him from holding a senior place within the monetary companies business if we can not depend on him to behave with integrity by disclosing uncomfortable truths about his shut private relationship with Mr Epstein.”
Epstein was convicted in a US in 2008 of procuring a toddler for prostitution and of soliciting prostitutes as a part of a controversial plea deal regardless of the very fact investigators linked him to 36 victims, some as younger as 14.
He was later rearrested on intercourse trafficking of youngsters costs in 2019 however died in jail cell in New York earlier than he may stand trial.
The watchdog requested Barclays in 2019 to clarify what it had executed to fulfill itself that there was no impropriety within the relationship between Mr Staley and Mr Epstein. In its response, Barclays relied on info equipped by Mr Staley. Mr Staley confirmed the letter was truthful and correct.
The letter claimed that Mr Staley didn’t have an in depth relationship with Mr Epstein however emails emerged between the 2 by which Mr Staley described Mr Epstein as considered one of his “deepest” and “most cherished” associates.
The letter from Barclays additionally claimed Mr Staley ceased contact with Mr Epstein effectively earlier than he joined Barclays however it was additionally revealed that Mr Staley was involved with Mr Epstein within the days main as much as his appointment as chief govt being introduced on 28 October 2015. Mr Staley joined Barclays in December 2015.
The FCA stated that whereas Mr Staley didn’t draft the letter “there was no excuse for his failure to right the deceptive statements when he was the one individual at Barclays who knew the total extent of his private relationship with Mr Epstein and the particular timings of his contact with him”.
The watchdog concluded the chief was conscious “of the chance his affiliation with Mr Epstein posed to his profession.”
It discovered that “in failing to right the deceptive statements within the letter, Mr Staley recklessly misled the FCA and acted with a scarcity of integrity.
The FCA stated James Staley was interesting the FCA resolution “the place he’ll current his case.”
In a press release, the Financial institution of England stated: ““We assist the FCA’s resolution introduced right this moment in opposition to Jes Staley. It’s crucial that senior managers act with integrity and are open and cooperative with the regulators.”
Barclays stated after the FCA’s resolution, it determined Mr Staley was ineligible for, or would forfeit, bonuses and share awards totalling £17.8m.
The banking large had already suspended all of Mr Staley’s deferred bonuses and long-term share awards whereas the watchdog investigated