Barclays CEO resigns following Epstein report from UK regulators

0

LONDON – The managing director of UK bank Barclays resigned on Monday following a report from UK regulators on his past ties to the late financier and sex offender Jeffrey Epstein.

Jes Staley has previously said he “deeply regrets” his relationship with Epstein, who committed suicide in a New York federal prison in August 2019 while awaiting a sex trafficking trial. There is nothing to suggest that Staley, 64, was aware of Epstein’s alleged crimes.

Staley said he would challenge regulators’ preliminary findings, which were shared with him and the bank on Friday. The Financial Conduct Authority and Prudential Regulation Authority report examined how Staley characterized his relationship with Epstein at Barclays when he was Epstein’s private banker in his previous job at US investment bank JP Morgan .

Details of the report were not released and both regulators declined to comment.

Barclays said in a statement Monday that the bank and Staley had agreed he would step down in light of the regulators’ preliminary findings and Staley’s decision to fight them.

The bank noted that the investigation “makes no conclusion” that Staley saw or was aware of any of Epstein’s alleged crimes, which it said was “the central issue” behind his decision to support his CEO after Epstein’s arrest in 2019. That wouldn’t do it. t comment further.

Staley said his last contact with Epstein was in the fall of 2015, when he and his wife traveled to Epstein’s private island for lunch. This trip took place shortly before he joined Barclays. He said he had no contact with Epstein once he joined the bank in December 2015.

CS Venkatakrishnan, head of the bank’s global markets, will take over as managing director. Barclays said succession planning has been in place for some time and he was identified as the preferred candidate more than a year ago.

Barclays shares fell 2% after the announcement, with Staley being widely credited with doing a good job at the bank.

Barclays credited him with leading the company with “commitment and skill”, helping to transform operations and improve results. He added that the regulatory process has yet to run its course and that “it is not appropriate” for the bank to comment further on the preliminary findings.

Analysts said Barclays must act because of the potential damage to its reputation.

“Barclays is right to unplug now,” said Neil Wilson, chief market analyst at Markets.com. “It probably could have done it earlier.”

The bank said Staley would get a payment of 2.5 million pounds (US $ 3.5 million) and receive other benefits for a year. He may also be eligible to receive repatriation costs to the United States and could receive more money.


Source link

Leave A Reply

Your email address will not be published.