Barclays CEO Staley leaves due to findings of Epstein probe

[LONDON] Barclays said on Monday (Nov 1) that chief executive Jes Staley is to stand down following British regulators' investigations into his ties with convicted sex offender Jeffrey Epstein.

CS Venkatakrishnan, head of global markets, will replace him as CEO with immediate effect.

Barclays said it was made aware on Friday (Oct 29) evening of the preliminary conclusions from the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority's (PRA) investigation into Staley's characterisation to Barclays of his relationship with Epstein and the subsequent description of that relationship in Barclays' response to the regulator.

"In view of those conclusions, and Mr Staley's intention to contest them, the board and Mr Staley have agreed that he will step down from his role as group chief executive and as a director of Barclays," the bank said.

"It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein's alleged crimes, which was the central question underpinning Barclays' support for Mr Staley following the arrest of Mr Epstein in the summer of 2019."

Barclays said last year that Britain's financial regulators were probing links between Staley and Epstein, who killed himself while awaiting trial on sex trafficking offences. Staley has previously said his relationship with Epstein ended in late 2015, and that he regretted having any relationship with him.

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The FCA and PRA said in a statement they could not comment further on the Epstein investigation.

"The board is disappointed at this outcome. Mr Staley has run the Barclays Group successfully since December 2015 with real commitment and skill," the bank said in a statement.

UK regulators launched their investigations into links between Staley and Epstein after JPMorgan provided them with emails the two exchanged when Staley was the head of JPMorgan's private bank, the Financial Times reported last year.

The bank's share price has fallen 9 per cent since Staley became CEO.

Barclays fought off a campaign launched by activist investor Edward Bramson in 2018 to have Staley removed. Bramson sold his stake earlier this year.

Britain's financial regulators and Barclays fined Staley a combined £1.1 million (S$2 million) in 2018 after he tried to identify a whistleblower who sent letters criticising a Barclays employee.

REUTERS