Former Barclays chief executive Jes Staley has accused the UK’s financial regulator of trying to destroy his decades-long career. He argued that the Financial Conduct Authority (FCA) made no effort to understand his relationship with convicted sex offender Jeffrey Epstein.
Staley, 68, took the witness stand in London on Monday, marking his first detailed public account of the matter. He is challenging the FCA’s decision to ban him from the financial sector for life. The regulator claims he misrepresented the depth of his ties with Epstein, who died in 2019 while awaiting trial on charges related to trafficking underage girls.
The FCA investigation stemmed from an October 2019 letter from Barclays’ chair to the regulator. The letter stated that Staley had assured the bank he did not have a close relationship with Epstein. However, the FCA alleges their interactions went beyond professional, including discussions about women, sex, and vacations.
In his testimony, Staley insisted the FCA had failed to grasp the context of his relationship with Epstein, who was a client of JP Morgan’s private bank when Staley led the division. He described their interactions as “professionally fairly close” but maintained he was transparent about them with Barclays’ leadership.
“No attempt has been made to understand the true nature of the relationship between a bank like JP Morgan and a man of Epstein’s then reputation and contacts,” Staley said. He also accused the FCA of unfairly targeting him, stating, “The FCA seeks to destroy my reputation as a banker with 43 years’ experience.”
Although he admitted he once liked Epstein and found him useful for business connections, Staley expressed deep regret over their association. He acknowledged that Epstein was “instrumental” in introducing him to influential figures, including former UK business secretary Peter Mandelson.
However, Barclays chair Nigel Higgins testified that he was unaware Staley remained in contact with Epstein until shortly before becoming Barclays CEO in 2015. The bank had previously told the FCA that Staley’s last contact with Epstein was “well before” he joined Barclays.
Staley countered that he had never tried to hide his ties to Epstein. He said he called Epstein after his Barclays appointment in 2015 to end contact, following the bank’s advice. However, prior to that, they had discussed his candidacy for the chief executive role.
“If I had known he was a prolific sex offender, I would not have had a relationship with him at all,” Staley insisted.
The legal proceedings are set to continue through Friday.
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