Jes Staley, the former chief executive of Barclays Bank, has lost a legal challenge against a decision by the UK’s Financial Conduct Authority (FCA) to bar him from holding senior roles in the country’s financial services sector, ABC News reports.
The ruling upholds the regulator’s 2023 finding that Staley misled authorities about the nature of his relationship with the late financier and convicted sex offender Jeffrey Epstein.
The case focused on a 2019 letter sent by Barclays to the FCA, asserting that Staley did not have a close relationship with Epstein and that their last contact occurred before Staley joined the bank in December 2015. The FCA concluded that this letter was misleading and that Staley had acted “recklessly and without integrity” by permitting it to be sent.
A tribunal convened to hear the appeal ruled on Thursday that Staley’s actions demonstrated “a serious failure of judgment.” The panel found that he failed to ensure the accuracy of the bank’s communication with the regulator and showed “no remorse” for his conduct. The tribunal also noted that contact between Staley and Epstein continued via Staley’s daughter as recently as February 2017.
Staley, 68, had been fined £1.8 million ($2.5 million) by the FCA. The tribunal reduced the fine to approximately £1.1 million, but affirmed the decision to prohibit him from holding senior positions in UK financial institutions.
Staley’s legal team argued that he had not attempted to conceal his ties to Epstein and maintained that their relationship was professional rather than personal. The tribunal rejected this defense, stating that the evidence supported the regulator’s conclusion that the two maintained a “friendship.”
Staley stepped down from Barclays in 2021 amid growing scrutiny over his ties to Epstein, who died in custody in 2019 while awaiting trial on sex trafficking charges. Barclays subsequently withheld bonuses and long-term share awards worth £17.8 million.
In a related matter, JPMorgan Chase, where Staley previously worked and managed Epstein’s accounts, agreed to a $75 million settlement with the US Virgin Islands over allegations the bank enabled Epstein’s criminal activities. JPMorgan also reached a confidential resolution with Staley, whom the bank had sued for allegedly failing to disclose the true nature of his relationship with Epstein.
