Barclays CEO Jes Staley to step down after Epstein probe

Jes Staley, CEO, Barclays Plc

Christopher Goodney | Bloomberg | Getty Pictures

LONDON — Barclays CEO Jes Staley will stand down following an investigation into his relationship with Jeffrey Epstein, the financial institution stated in a press release Monday.

C.S. Venkatakrishnan (generally known as Venkat) will take over as chief govt with fast impact, topic to regulatory approval, it added.

Barclays and Staley “have been made conscious on Friday night of the preliminary conclusions” of a probe by the U.Okay.’s Monetary Conduct Authority and the Prudential Regulation Authority, Barclays stated.

It added that the investigation was into “Mr Staley’s characterisation to Barclays of his relationship with the late Mr Jeffrey Epstein and the next description of that relationship in Barclays’ response to the FCA.”

“In view of these conclusions, and Mr Staley’s intention to contest them, the Board and Mr Staley have agreed that he’ll step down from his position as Group Chief Govt and as a director of Barclays,” the financial institution stated.

Shares of Barclays financial institution have been buying and selling 1.2% decrease Monday morning after the announcement

The financial institution stated the investigation “makes no findings that Mr Staley noticed, or was conscious of, any of Mr Epstein’s alleged crimes, which was the central query underpinning Barclays’ assist for Mr Staley following the arrest of Mr Epstein in the summertime of 2019.”

Billionaire financier Epstein was arrested in July 2019 on youngster sex-trafficking expenses but hanged himself a month later in a Manhattan federal jail.

Staley’s hyperlinks to the useless financier have been the topic of an investigation by the U.Okay.’s monetary watchdog and Financial institution of England’s regulatory authority. Barclays stated that the “regulatory course of nonetheless has to run its full course and it’s not applicable for Barclays to remark additional on the preliminary conclusions” of the investigation.

Venkat as CEO

Relating to the appointment of Venkat, Barclays stated its board “has had succession planning in hand for a while, together with reviewing potential exterior appointees, and recognized Venkat as its most popular candidate for this position over a 12 months in the past, on account of which he moved from the place of Group Chief Threat Officer to Head of World Markets.”

Barclays stated it was assured that underneath his management, the financial institution “will proceed its strategic path and enhance efficiency consistent with the progress of latest years.”

Previous to becoming a member of Barclays in 2016, Staley labored at JP Morgan Chase from 1994, holding senior roles in asset administration and funding banking.

Epstein’s contacts

Any former affiliation with Epstein is now proving poisonous for quite a lot of high-profile folks.

Epstein’s shut affiliate and former girlfriend, British socialite Ghislaine Maxwell, is herself awaiting trial on expenses that she recruited underage women to be sexually abused by Epstein. She denies the fees.

One in every of Epstein’s accusers, Virginia Giuffre, has claimed that Prince Andrew, the Duke of York, had sex with her when she was underage and within the clutches of Epstein and Maxwell. Prince Andrew denies the allegations.

Epstein can also be recognized to have socialized with former U.S. presidents Donald Trump and Bill Clinton, each of whom have sought to distance themselves from Epstein, insisting they knew nothing of his crimes.

Susannah Streeter, senior funding and markets analyst at Hargreaves Lansdown, commented on Monday that “‘the repercussions from the Jeffrey Epstein scandal stretch far and broad, and now Barclays finds itself on the centre of the storm.”

“Whereas the probe didn’t centre on Mr Staley’s position at Barclays however what he disclosed about his earlier place at JP Morgan, what was underneath query was how he characterised his former relationship with the disgraced financier,” she stated in a be aware.

“It is understood Mr Staley will contest the conclusions, and clearly the board need to distance Barclays from what might be an extended drawn out course of.”

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