Former Barclays Plc boss Jes Staley has been fined £1.8 million ($2.2 million) and banned from the U.K. financial services industry after "recklessly" misleading regulators and the bank about his relationship with the late financier and sex offender Jeffrey Epstein.
The Financial Conduct Authority said Staley privately described Epstein as one of his "deepest" and "most cherished" friends. Yet he allowed Barclays to send a letter to the watchdog that distanced him from the financier, incorrectly stating that he'd ceased contact before joining the bank in 2015, according to the FCA.
"While Mr. Staley did not draft the letter there was no excuse for his failure to correct the misleading statements," the regulator said in a statement. "Mr. Staley recklessly misled the FCA and acted with a lack of integrity."
Barclays said in a separate statement that Staley should forfeit a number of awards including his bonus for 2021. Lapsed awards under the long-term incentive plan and forfeited deferred compensation were worth a total of £17.8 million, based on Monday's share price, it said.
Staley, who resigned from the British lender in 2021 over the probe, is appealing the regulators' findings at a tribunal.
"If I had known who JE really was, there is absolutely no doubt that I wouldn't be in the position I am in today," Staley said in a statement provided by his lawyers. "I am very disappointed by the FCA's decision and I will continue to challenge it."
'Uncomfortable Truths'
The FCA's decision comes after years of scrutiny over Staley's ties to Epstein when he worked for JPMorgan Chase & Co. and what he told Barclays about the relationship when he joined.
The regulator published a report detailing the ties between the pair, including:
