The financial industry ban on the former CEO of U.K. banking giant Barclays Bank plc over his alleged association with disgraced U.S. financier Jeffrey Epstein has been upheld by the Upper Tribunal.
In 2023, the U.K.’s Financial Conduct Authority (FCA) sanctioned former Barclays CEO James Edward “Jes” Staley for misleading the regulator about his relationship with Epstein, who died in prison in August 2019 while awaiting trial on charges of sex trafficking involving minors.
Amid reports of Epstein’s connections with prominent figures in the financial sector, the FCA began inquiries with Barclays.
In a letter to the FCA in October 2019, Staley downplayed his relationship with Epstein — yet, the FCA’s investigation later found they had a close relationship over many years. For instance, in emails between them, Staley “described Epstein as one of his ‘deepest’ and ‘most cherished’ friends,” the FCA noted.
According to the tribunal’s decision, Staley met Epstein in approximately 1999 while he was head of JP Morgan Chase’s private bank, which had Epstein as a client. In 2009, Staley became CEO of JP Morgan’s investment bank, and in 2015, he was named CEO of Barclays. Over that time, they communicated extensively and had various social interactions.
The true extent of their relationship was revealed after the FCA compelled JP Morgan to turn over emails between Epstein and Staley from his time at that firm.
As a result, in May 2023, the FCA concluded that Staley acted recklessly, without integrity, and failed to cooperate with the regulator. It banned him permanently from holding senior management positions in the financial industry.
Staley appealed the ruling to the Upper Tribunal, which has now sided with the FCA and upheld the ban.
In its decision, the tribunal found that “Staley had a clear motive for downplaying his relationship with Mr. Epstein,” and that, at the time, he had no reason to believe the full extent of their relationship would be exposed through the JP Morgan emails.
It also concluded that he knew the letter to the FCA contained misleading information, acted recklessly in approving its contents and breached the FCA’s principles — and that there was no reason to interfere with the FCA’s decision to ban him from the industry.
“Mr. Staley chose to take a calculated risk that we would take his inaccurate account of his relationship with Mr. Epstein at face value. He hoped that the truth would never come to light and that he would get away with it. Such a serious lack of integrity flies in the face of the requirements we place on those at the top,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA, in a release.
“The tribunal’s decision shows that we can and will act to protect the financial system by holding those in senior roles to the high standards required of them,” she added.
In addition to the industry ban, the FCA also proposed to fine Staley £1.8 million. The tribunal reduced the fine to £1.1 million, citing the fact that Barclays prevented Staley from receiving deferred shares that he could have been entitled to under his employment with the bank.
Staley has 14 days to appeal the tribunal’s ruling.