“The relationship between Mr Staley and Mr Epstein was the subject of an enquiry from the Financial Conduct Authority to which the Company responded,” Barclays said. “The FCA … subsequently commenced an investigation, which is ongoing, into Mr Staley’s characterization to the company of his relationship with Mr Epstein and the subsequent description of that relationship in the company’s response to the FCA.”
The FCA and another UK regulator, the Bank of England’s Prudential Regulation Authority, confirmed in a statement that they are investigating the Barclays CEO.
Staley has been running the bank since late 2015. Prior to that he worked for more than 30 years at JPMorgan (JPM
), where he served as head of its investment banking division.
In its statement, Barclays said Staley had developed a professional relationship earlier in his career with Epstein, who died in jail last year while awaiting trial on sex trafficking charges. The bank said Staley had told the board that he had had no contact with Epstein since becoming Barclays CEO in December 2015.
“Based on a review, conducted with the support of external counsel, of the information available to us and representations made by Mr Staley, the board … believes that Mr Staley has been sufficiently transparent with the company as regards the nature and extent of his relationship with Mr Epstein. Accordingly, Mr Staley retains the full confidence of the board, and is being unanimously recommended for re-election at the Annual General Meeting.”