In a significant development on Thursday, former Barclays (LON:BARC) CEO James Staley was fined £1.8 million ($2.21 million) by the UK's Financial Conduct Authority (FCA) and barred from holding senior roles in the finance sector. This decision was made due to Staley's misleading claims regarding his association with financier Jeffrey Epstein, who faced sex trafficking charges and committed suicide in jail in 2019.
The FCA found that Staley had recklessly endorsed a deceptive letter from Barclays about his relationship with Epstein and their last interaction, misleading both the FCA and Barclays Board. Contrary to the contents of the letter, subsequent emails revealed Staley referring to Epstein as one of his "deepest" and "most cherished" friends. Furthermore, it was disclosed that Staley had contact with Epstein on October 28, 2015, before joining Barclays in December 2015.
The investigation into Staley's ties with Epstein began in August 2019, leading to his resignation in November 2021. The letter under scrutiny contained false information about their relationship and final contact. As a consequence of these findings, Barclays' Remuneration Committee ordered Staley to forfeit bonuses and long-term incentives worth £17.8 million ($21.89 million).
Staley disputed these findings at the Upper Tribunal, rendering them provisional subject to further legal action. The Bank of England supported the FCA's decision, with Therese Chambers, FCA executive director of enforcement and market oversight, condemning Staley's lack of judgment.
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