The former Barclays chief executive Jes Staley has accused the UK’s financial regulator of seeking to “destroy” his reputation built up over a 43-year career in banking and making “no attempt” to understand his relationship with child sex offender Jeffrey Epstein.
Staley took the witness box for the first time on a Monday at the start of the second week of a high-profile legal challenge in London. It marked the first time the former UK banking boss has given any detailed public account of his experience with Epstein or the Financial Conduct Authority’s (FCA) investigation.
The 68-year-old is trying to overturn the FCA’s decision to issue him with a lifetime ban from the City, alleging he lied about the depth of his ties with Epstein, who died in August 2019 while awaiting trial over charges on trafficking underage girls for sex. The FCA had been investigating claims in a letter sent by the Barclays chair to the regulator in October 2019 stating: “Jes has confirmed to us that he did not have a close relationship with Mr Epstein.”
Staley, who appeared in court in a dark grey suit and pink tie, hit out at the regulator, saying he was not given the opportunity to properly account for his side of the story, particularly how the relationship with the late financier developed after Staley became head of JP Morgan’s (JPM) private bank – where Epstein was a client – in the early 2000s. He described their relationship as “professionally fairly close”.
Staley said in a witness statement submitted to the upper tribunal: “No attempt has been made understand the true nature of the relationship between the bank such as JPM [JP Morgan] and a man of Mr Epstein’s then reputation and contacts.
“The context in which the letter of 8 October 2019 was drafted and approved has carried no weight with the FCA despite the fact that it was obvious to all concerned that it was intended to be construed with any degree of precision.
“Despite this and the facts to which I have referred in this statement, the FCA seeks to destroy my reputation as a banker with 43 years’ experience and with a significant record of achievement for Barclays.”
He also claimed his reputation had been “irretrievably damaged”. Staley resigned over the FCA’s investigation in 2021.
The FCA is alleging the pair had a relationship that “went beyond one that was professional in nature”, in which Epstein messaged Staley about sex, women and foreign holidays, and worked behind the scenes to bolster Staley’s career by liaising with government officials, business leaders and royalty.
Staley added that he deeply regrets associating with Epstein, given “there is now clear evidence that he was a serial sex offender”. But the former Barclays chief admitted that he previously “liked him” and that Epstein was “instrumental” in introducing him to influential people, including Peter Mandelson, during his time as the business secretary under the previous Labour government.
Staley is arguing that he was always transparent about his ties to Epstein, including with members of the bank’s board.
However, the Barclays chair, Nigel Higgins – who has been in post since 2019 – said he never knew the two men were still in phone and email contact up to Staley’s appointment as chief executive in October 2015. That is despite having declared to the FCA that the last contact between the ex-boss and the child sex offender was “well before” Staley joined Barclays.
“I was not aware of that at the time the response to the FCA’s question was being drafted,” he said, but admitted in a witness statement: “I did not ask Mr Staley the date of his last contact with Mr Epstein.” Higgins appeared in court to give evidence earlier on Monday.
Staley said he called Epstein after his appointment to Barclays in October 2015 to say the pair could no longer be in contact – following the bank’s advice – but had previously been speaking to Epstein about his application to become chief executive.
“I have never attempted to conceal my relationship with Jeffrey Epstein nor have I ever been evasive about it,” Staley said in his witness statement. “If I had known it was to be found that he was a prolific sex offender, I would not have had a relationship with him at all.”
The hearing is due to continue until at least Friday.
