Latest news with #JesStaley
Yahoo
an hour ago
- Business
- Yahoo
‘Overwhelming' evidence ex-Barclays CEO was ‘close' to Epstein, tribunal rules
There is 'overwhelming' evidence that former Barclays chief executive Jes Staley had a close relationship with convicted paedophile Jeffrey Epstein, a tribunal has ruled. Mr Staley was fined £1.8 million and banned from holding senior roles in the financial sector by the Financial Conduct Authority (FCA) in 2023, after it found that he misled the regulator over the nature of his relationship with the financier. The American challenged the ban and the fine at the Upper Tribunal in London, with his lawyers saying that he 'never attempted to conceal his relationship with Mr Epstein', which the banker described as 'professionally fairly close' but not 'personally close'. The FCA opposed the challenge, telling a hearing held in March and April that Mr Staley and Epstein had a 'friendship'. In a unanimous decision on Thursday, Upper Tribunal judge Tim Herrington and tribunal members Martin Fraenkel and Cathy Farquharson dismissed Mr Staley's challenge, but reduced the fine to £1,107,306.92. They said: 'We regard the distinction between a close relationship which arises out of personal friendship and one that arises out of a professional relationship as being fallacious.' They continued: 'In our view, the evidence that Mr Staley had a close relationship with Mr Epstein is overwhelming and there was no evidence before us to suggest that many others had a relationship which was similar in nature to that we have found existed between Mr Staley and Mr Epstein.' They added: 'In our view, there is no basis on which Mr Staley could have drawn the conclusion that inclusion of the 'no close relationship language' was accurate.' Mr Staley acted as a private banker to Epstein during his time at JP Morgan, where he worked for more than 30 years before joining Barclays in 2015. In 2019, Epstein was arrested again after being jailed for child sex offences in 2008. He died in prison later that year while awaiting trial for sex trafficking offences. Leigh-Ann Mulcahy KC, for the FCA, told the tribunal in written submissions that the watchdog contacted Barclays in August 2019 for an 'assurance' that the bank's board had 'informed itself of and was comfortable regarding any association of Mr Staley or Barclays with Mr Epstein'. In a letter written to the FCA, approved by Mr Staley, Barclays chairman Nigel Higgins said 'Jes has confirmed to us that he did not have a close relationship with Mr Epstein' and that 'Jes' last contact with Mr Epstein was well before he joined Barclays' in 2015. The authority found that the letter was misleading and that Mr Staley acted 'recklessly and without integrity' by allowing it to be sent, with Ms Mulcahy telling the hearing that the pair maintained contact through Mr Staley's daughter up to at least February 2017. The barrister said emails showed Mr Staley describing Epstein as like 'family' and one of his 'deepest' and 'most cherished' friends, and that between March 2016 and February 2017, Mr Staley's daughter, Alexa Staley, was used as an intermediary. In a witness statement, Mr Staley told the tribunal that he would describe his relationship with Epstein as 'professionally fairly close' and that his reputation had been 'irretrievably damaged'. He said: 'It was a professional relationship which was predicated upon business. We were not personal friends, nor were we personally close.' Giving evidence in person at the tribunal, Mr Staley said he 'was not aware' of Epstein's abuse. He said: 'I think it was important to emphasise that it was a professional relationship because I think somebody with a very close personal relationship more than likely would have been aware.' In written submissions, Robert Smith KC, for Mr Staley, said that it would be 'entirely illogical' to conclude that Mr Staley would have approved the letter if he believed it was inaccurate or would mislead the regulator. But in their 93-page ruling, Judge Herrington, Mr Fraenkel and Ms Farquharson said it was 'not credible that Mr Staley did not think that the letter would mislead' the FCA. They continued that they 'would have expected Mr Staley to have been particularly careful' in ensuring the letter was accurate, and that his breaches of FCA rules were 'a serious failure of judgment'. The judges concluded that they saw 'no basis on which we should interfere' with the decision to ban Mr Staley, who they said had 'shown no remorse for his conduct'. But they reduced Mr Staley's fine to reflect the fact that, after the FCA published its decision in 2023, Barclays prevented him from deferring shares to which he could have been entitled. Following the ruling, Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: 'Mr Staley chose to take a calculated risk that we would take his inaccurate account of his relationship with Mr Epstein at face value. 'He hoped that the truth would never come to light and that he would get away with it. Such a serious lack of integrity flies in the face of the requirements we place on those at the top. 'The tribunal's decision shows that we can and will act to protect the financial system by holding those in senior roles to the high standards required of them.' The FCA added that Mr Staley has 14 days in which to appeal against the ruling. Sign in to access your portfolio
The Guardian
3 hours ago
- Business
- The Guardian
High flyer to pariah: the saga of Epstein-linked banker Jes Staley
In 1999, the future Barclays chief executive Jes Staley was gearing up for his biggest job yet. As head of JP Morgan's private bank, he would be in charge of a sprawling team that managed money and investments for some of the world's richest people. Among them was the mysterious but well-connected billionaire Jeffrey Epstein, with whom he would quickly develop a 'fairly close professional relationship'. Staley was soon holidaying on Epstein's private island, flying on his private plane, and gaining access to an impressive portfolio of ministers, entrepreneurs and royalty. The relationship ended up bolstering Staley's profile on Wall Street and even connecting his daughter to senior figures at Ivy League universities. But it would also help to end his career. In July 2019 Epstein was arrested on child sex trafficking charges, accused of sexually exploiting and abusing dozens of girls at homes in Manhattan and Palm Beach, Florida. Some victims were as young as 14, US prosecutors alleged. Epstein, who was in jail as he awaited trial, was found dead in his prison cell weeks later. The revelations about Epstein led to a media storm, bringing renewed attention to his former friends and business associates, including Staley. Barclays told the Financial Conduct Authority in October 2019 that the pair 'did not have a close relationship' and were last in contact 'well before' Staley took over as CEO four years earlier. But a subsequent FCA investigation, involving a cache of 1,200 emails from JP Morgan, convinced the regulator that it had been misled. The regulator alleged that the pair were indeed close friends and stayed in touch via Staley's daughter for years after he joined Barclays. It was not Staley's first run-in with the FCA, having been fined £642,000 for trying to unmask a whistleblower in 2018. But it was the final straw: he was banned from the holding senior management roles in the City in 2023, leading to him lose about £18m worth of pay. The 68-year-old fought back in an appeal this spring, arguing that he had always been transparent with Barclays and had followed internal legal advice on the letter's phrasing, which was meant to emphasise that he had no knowledge of Epstein's crimes. Judges on Thursday ruled in the FCA's favour, upholding the lifetime City ban. March's two-week tribunal hearing in London also gave the first public account of Epstein's role in Staley's life. This is what the court heard. The pair did not meet by chance, but on the recommendation of JP Morgan's then chief executive, Douglas 'Sandy' Warner, who felt that Epstein – already a client – was someone the newly appointed head of the private bank should know. The two men 'got on well', according to Staley's lawyers, and Epstein's career-boosting potential quickly became clear. He would refer wealthy friends to Staley, many of whom turned into JP Morgan clients. The pair occasionally socialised, Staley said, explaining that he would sometimes swing by Epstein's home in Manhattan for a drink or dinner. And, from 2005, he took his family on the first of a handful of trips to Epstein's private Caribbean island, Little St James. But Staley was adamant that Epstein was never part of his inner circle, was never invited to the family home, any 'milestone birthdays', or 'personal meals in restaurants'. Staley said he had few personal friends and remains a loner. 'From what I recall, Jes didn't have very many friends,' his former chief of staff Sasha Wiggins told the court in March. And Staley said parts of Epstein's life always remained a mystery. 'I really didn't know how much money he had,' Staley said. 'What his background was, was always sort of shrouded.' But by 2006, the mask started to slip when Epstein was arrested after Florida police were tipped off that he was recruiting young girls for massages and sexual encounters. He pleaded guilty to soliciting prostitution from a minor and in 2008 he was sentenced to 18 months in jail. Staley stayed in contact, though, and visited Epstein after his indictment. He said Epstein did not deny that he solicited a prostitute, but maintained that he thought the girls were over 18. 'Obviously he lied to me,' Staley told the court in March. He again visited Epstein in around 2009, when he was on a prison work release programme in Florida. Staley said he reported the visit to JP Morgan, which was reviewing whether to keep Epstein as a client. But emails suggest he had been leaning on the imprisoned Epstein for advice throughout the financial crisis, writing in October 2008: 'I am dealing with the Fed on an idea to solve things. I need a smart friend to help me think through this stuff. Can I get you out for a weekend to help me (are they listening?)' The court heard that Staley turned to Epstein to help connect his daughter – a burgeoning physics major – with scientists and senior professors at Ivy League universities. The financier, who Staley referred to as 'Uncle Jeffrey', would later be invited to her graduation in 2015. Staley stressed that he did not then know of Epstein's crimes. 'Mr Staley said to me once: 'Why would I have introduced my wife and daughters to Mr Epstein if I thought he was a paedophile?'' Wiggins told the court. When Epstein was released on house arrest in July 2009, Staley was one of the four people he emailed to say: 'Free and home.' Staley replied: 'I toast your courage !!!!!' But more cryptic messages between the two stirred the most controversy, including an exchange about Disney princesses in July 2010. 'That was fun. Say hi to Snow White,' Staley wrote. 'What character would you like next?' Epstein asked, to which Staley replied: 'Beauty and the Beast.' 'Well one side is available,' Epstein responded. Staley told the court he was not able to explain the exchange. Months earlier, in September 2009, Epstein emailed a woman to say: 'Jes staley is staying at the berkeley hotel in London tonight.' Staley said he could not recall the reason behind the message. That year Staley's career took another leap, with his promotion to lead JP Morgan's investment bank. Even the chief executive, Jamie Dimon, was singing his praises, telling Fortune magazine: 'Jes has impeccable character and integrity.' The new gig meant Epstein was no longer a direct client. But that did not end their relationship, or Staley's effusive messages. In November 2009, Staley detoured from a work trip to visit Epstein's ranch in New Mexico, replete with a 26,700-square-foot mansion, private airstrip, and seven-bay heated garage. He emailed Epstein in thanks: 'So when all hell breaks lose [sic], and the world is crumbling, I will come here, and be at peace. Presently, I'm in the hot tub with a glass of white wine. This is an amazing place … I owe you much. And I deeply appreciate our friendship. I have few so profound.' In December, months after Epstein's release, the pair finally found time to meet in person. 'I realize the danger in sending this email. But is [sic] was great to be able, today, to give you, in New York City, a long heartfelt hug. To my friend, Thanks. Jes.' At times, their emails were more explicit: discussing sex scandals and lovers. One message, sent from a debutante ball that Staley attended in November 2010, told Epstein that Staley had seen a woman – 'your lover,' Staley said, 'she says u slept with her!!' Epstein separately sent photos, one of which was of a woman in a low-cut ballgown. 'You were with Larry, and i had to put up with …' Epstein wrote. When FCA lawyers suggested that this interaction was a sign that he and Epstein were 'personally close', Staley suggested that such behaviour was not uncommon between people who were 'professionally close – you know, if you've ever worked on a trading floor on Wall Street'. Staley said there were also parts of his life he kept from Epstein, including having sex with a member of Epstein's staff. 'Oftentimes I would go to Epstein's apartment and he would be late, and she and I got the chance to know each other.' This led to sexual intercourse, he said, 'much to my embarrassment today'. The former banker, who has a wife and two daughters, said the confession came at a personal cost. 'I have been honest such that I have put my marriage at risk … I have never shied away from telling the truth about all of this.' The date of the encounter was not disclosed in court, but the FCA revealed that Epstein's former employee had 'carved' Staley out of a settlement she had reached with Epstein's estate. 'I was not aware of that,' Staley told the court. Despite the allegedly secret encounter, Epstein and Staley would send messages declaring their close ties, referring to each other as family. In one exchange in March 2011, Epstein writes: 'Told you −−−− family.' Staley replied with one word: 'Family'. Behind the scenes, Epstein's banking relationship with JP Morgan was starting to unravel. The bank was considering dumping Epstein as a client but was careful about breaching the issue with Staley, saying they were friends. 'He needs to understand the potential backlash to the firm given all the work done to root out clients involved in human trafficking,' an internal memo said. Staley tried to convince the bank's top lawyer to 'hear [Epstein] out', according to a JP Morgan meeting note. He also revealed to Epstein that his transactions were under review. Staley admitted to sharing internal information with Epstein but denied having pushed the bank to keep him as a client. Panic set in by September 2009, when Epstein told Staley that a 'family meeting was required'. Epstein was concerned about an 'abusive reporter', and instructed Staley on how to respond: 'I think your response should be [that] all of the incidents that they raise happened a decade ago, I paid my debt and like everyone else should be given another chance.' Epstein said he had been 'unaware of the full heat that you have taken as a result of our friendship', adding: 'I'm sorry.' The financier hired a London lobbyist for a 2012 campaign to make Staley Barclay's chief executive, dubbed 'Project Jes'. In emails the lobbyist claimed he hoped to convince top-level policymakers, including George Osborne, who was chancellor, and Mervyn King, the Bank of England governor, to support the US banker. Staley said he never knew about the push. Barclays ultimately installed its own head of retail and business banking, Antony Jenkins, whose ousting three years later led to Staley's leadership. In early 2013 Staley left JP Morgan, moving to the hedge fund Blue Mountain Capital. At this point, Staley claimed, his relationship with Epstein started to decline. But the FCA alleged that their communication did not wither, pointing to a string of emails in early 2013 in which the pair discussed dinner plans, new work numbers and planned meet-ups. Staley also kept up an annual tradition of emailing Epstein on New Year's Eve. The declarations of friendship continued in January 2015, when Staley told Epstein: 'The strength of a Greek army was that its core held shoulder to shoulder, and would not flee or break, no matter the threat. That is us.' That year, Epstein was back in the media's crosshairs. An anonymous woman had filed a lawsuit alleging she was repeatedly sexually abused by Epstein between 1999 and 2002, and that he had loaned her out to rich and influential men. By that April, Staley had what he says was his last in-person meeting with Epstein, having again taken his family to visit the financier's private island. 'Thanks for the flight and thanks for the lunch. Your place is crazy, and special … I count u as a deep friend. The girls seemed to enjoy the sail. All the best Jes.' Within months, Staley was taking another stab at the Barclays job, and kept Epstein abreast of developments. Weeks before the appointment, Staley emailed: 'Cross your toes !!!' Staley was back in touch days before receiving his Barclays contract: 'We're very close.' The British tabloids, however, were circling, pouncing on another prominent figure with ties to a convicted sex offender. News of Prince Andrew's relationship with Epstein had caused a media frenzy as early as 2011, years before a disaster BBC interview that led to the prince being forced to step back from public duties in 2019. Days before Staley was confirmed as Barclays' new boss, the Mail on Sunday was chasing up claims that Epstein lobbied Barclays to hire Staley in both 2012 and 2015. Epstein forwarded the newspaper's queries to Staley, who later replied: 'Ok. I'm going to play is [sic] simple. I've known you as a client. I will tell B tomorrow. Let me know if they say something else. But stay away from them. I'm fine.' The article was published with the headline: 'Andrew's billionaire paedophile friend secretly backed new Barclays boss for job'. Staley said he cut contact with Epstein days later, following 'strong advice' from Barclays. 'I telephoned Mr Epstein and told him that we could not ever again have communication, which he accepted. The relationship ended there. I have had no communication with him since then,' Staley told the court. There is no evidence of direct contact between the two men after October 2015, but the FCA alleged they stayed in touch via Staley's daughter until at least February 2017. Emails show that Epstein asked Staley's daughter to ask the newly installed chief executive's opinion on other bankers, tried to connect Staley with royalty in the Middle East, and to ask whether Staley was interested in a post with the US Treasury. Staley said he did not recall any of those conversations, and he did not realise at the time that his daughter and Epstein were still corresponding. The tribunal on Thursday raised concerns in its judgment about Staley's evidence, saying he 'could be inconsistent in his answers when he felt that it would suit his case', adding that he had 'shown no remorse for his conduct'. Judges have sided with the FCA, upholding its City ban and scuppering efforts to restore his reputation. And while the tribunal reduced his penalty by £1.8m to £1.1m, it reflected pay he lost from Barclays as a result of the FCA ruling. It is not clear how much Staley has paid in legal costs trying to challenge the UK regulator. Staley said in a statement: 'I am disappointed by the outcome and the time it took for this process to play out – that was entirely beyond my control. As the tribunal accepted, I was never dishonest. It took years of arguing with the authority and until November 2024 to establish that fact and it took more time for the financial penalty to be reduced by 40%. 'I have worked tirelessly for my prior employers for the entirety of my career. I am proud of the support I gave to many individuals during that career and the strategy I developed to help Barclays when it faced immense challenges. The tribunal recognised what they described as 'my long and distinguished career'.'
Bloomberg
3 hours ago
- Business
- Bloomberg
The Judgment of Jes Staley
'He hoped that the truth would never come to light.' The ex-Barclays CEO's doomed bid to rescue his reputation has laid bare the damning details of his close relationship with Jeffrey Epstein. At the dining table in Jeffrey Epstein 's palatial Manhattan townhouse, Sandy Warner was becoming increasingly wary. It would be a few years before reports of Epstein's crimes emerged, but something about him felt odd to Warner — as did the parade of young women walking around the property. One of them even tried to rub Warner's shoulders, which creeped him out some more. However, Epstein was clearly rich, and claimed to be influential. As CEO of JPMorgan Chase & Co. it was Warner's job to get to know such people. 'I thought he was very well-connected because he told me he was,' Warner said, recalling the dinner that took place more than two decades ago, in or around the year 2000. 'He had all sorts of war stories about people's money who he said he managed.' Returning to his office, Warner gave his staff an instruction: he never wanted to see Epstein again. But, despite his misgivings, Warner didn't completely bar his colleagues from working with the secretive financier. 'I think I said something like: 'Look, you guys in the private bank can deal with him if you want, but I don't want to,'' Warner said. So it was that the newly-installed — and ambitious — head of JPMorgan's private bank, Jes Staley, went to meet Epstein, beginning a professional and personal relationship that endured for more than a decade, even after Epstein was jailed for solicitation of an underage girl and placed on a sex offenders' register. Staley has now been banned for life from working in financial services in the UK, with his reputation indelibly marked by his friendship with Epstein, the details of which have now been revealed in open court in a hearing that Staley himself initiated. A huge trove of emails, documents and regulatory investigations, released during legal proceedings over the past few years, have shown that Staley and Epstein met and corresponded regularly between the early 2000s and 2015, when the former was appointed CEO of Barclays. Staley visited Epstein's Caribbean island and consulted him repeatedly for career advice and business dealings. Such was the apparent closeness of their relationship that the two men referred to each other as 'family.' Staley's attempts to downplay his dealings with Epstein — a prolific pedophile and sex trafficker with dozens of victims, many of them young and vulnerable women — ended his career at Barclays. In 2023, after a four-year-long investigation, the Financial Conduct Authority ruled that Staley had 'recklessly misled' it by minimizing his ties to Epstein. Staley was fined £1.8 million ($2.4 million) and banned from holding senior roles in the financial services industry. That could have been the end of the affair. Staley, 68, could have retired to his yacht, Bequia, with millions of dollars in the bank. Instead, he launched an attempt to salvage his reputation and career via a highly-publicized appeal. Over 12 days in a London courtroom this spring, Staley sat through hours of testimony and cross-examination, including detailed explorations of the well-documented communications between him and Epstein — and a public admission of infidelity. Ultimately, the case was an argument over a technicality: whether or not Staley acted recklessly by not fully disclosing his relationship with Epstein to Barclays, and hence to the regulator. The judgment, released Thursday, reduced Staley's fine to £1.1 million, but affirmed the lifetime ban. The judge presiding over the case, Timothy Herrington, delivered a scathing assessment as he explained his decision to bar Staley from working in the industry. 'We have noted Mr Staley's achievements as chief executive of Barclays, but in our view these do not diminish the seriousness of the misconduct,' Herrington wrote. 'The loss of his longstanding career is an inevitable consequence of that conduct.' But for those who advocate for Epstein's victims, the information that has come out during the case against Staley shows that there is still a long way to go before the institutions and individuals that they feel enabled Epstein's crimes are fully held to account. 'Jeffrey Epstein's massive and monstrous sex trafficking enterprise damaged the lives of countless girls and young women. Though the story of how he operated with impunity for decades has yet to be told fully, we know he did not act alone,' said Sigrid McCawley, managing partner at law firm Boies Schiller Flexner, who represented several of Epstein's victims in a lawsuit against JPMorgan. 'Epstein's enterprise was enabled by many in the ranks of the privileged and powerful, including people in the world of finance and banking like Jes Staley.' A representative for Staley did not respond to requests for comment. Staley has previously denied having any knowledge of or involvement in Epstein's crimes. Q: When was the last time you spoke with Jeffrey Epstein? A: I want to say October, November 2015. Q: Why was that the last time that you spoke with Jeffrey Epstein? A: I became CEO of Barclays. Q: And what about your position as CEO of Barclays had anything to do with you no longer meeting with or communicating with Jeffrey Epstein? A: Being CEO of a major British bank is a very, very visible job, and I thought it was not appropriate to deal at all with Epstein in that role. Q: By that point in time, did you realize that Jeffrey Epstein had lied to you in the past about his lack of understanding of the ages of some of the victims that had accused him? A: Yes. Q: And did that have anything to do with your making a decision to stop talking with him? A: Yeah. I think it became increasingly—that he had a very, very terrible past, and I didn't want to be associated with him. Jes Staley, testifying in June 2023 deposition in Jane Doe 1 and USVI legal cases against JPMorgan. Origin Story Staley's relationship with Epstein began not long after the dinner that Warner attended. In his testimony at the London tribunal in 2025, Staley said it was Warner who had 'advised me that it was important for me to get to know Mr Epstein, and it was clear that he was considered to be a particularly valued client of the bank.' Speaking in an interview for the first time about Staley and Epstein, Warner remembers the interaction differently. 'I don't remember telling Jes to meet him, but Jes would've been the logical person for me to call,' he said. 'I think I'd have said something like he'd be a good guy to meet, but just understand that I grew uncomfortable with him and you should be wary, too.' Email records for the first years of the relationship are scant, but those that do exist shows that as early as December 2001, Staley's colleagues at JPMorgan were consulting him on how to deal with Epstein. Then, in March 2004, Staley wrote a memo to senior executives at JPMorgan: a proposal for an investment in Highbridge Capital Management LLC, a hedge fund that was at the time one of the world's most successful alternative asset managers, having generated double-digit returns consistently since its founding in the early 1990s. The opportunity, Staley said in a memo, cited in a May 2023 deposition, had come to JPMorgan because of the bank's relationship with Highbridge's founders and a 'founding investor': Epstein, who held a central role in the talks between the two firms. Six months after Staley's memo, JPMorgan announced the purchase of a controlling stake in Highbridge. For Staley, the deal showed that Epstein could be a catalyst for his career. The Highbridge takeover was, Staley said during his testimony in London, 'one of the most important transactions in the financial industry in our generation.' Jamie Dimon, who had been appointed CEO of JPMorgan in 2006, was less impressed. Asked in a 2023 deposition about whether the Highbridge takeover had been a good deal for the bank, his reply was blunt: 'Not really.' Over the next few years, documents and emails released in successive court and regulatory filings, show that Staley's relationship with Epstein deepened. In February 2005, Staley asked his colleagues at JPMorgan private bank to onboard a new client, Epstein's sometime girlfriend, Ghislaine Maxwell. In 2005 or 2006, according to the FCA's final submission to the London tribunal, Staley took his first flight on Epstein's plane, and spent a night — along with his family — on the financier's Caribbean island. Epstein seemed to be good for business, referring other clients to the bank, and putting Staley in front of the rich and powerful. Over this period, Staley would later tell the London tribunal, 'Epstein had introduced me to I think at that time probably three of the five wealthiest people in the world.' Then, in May 2006, Palm Beach Police filed a probable cause affidavit stating that Epstein should be charged with unlawful sex with minors and sexual abuse. The year before, the force had received an accusation that the financier had paid a 14-year-old girl for a massage and molested her. Local police and the Federal Bureau of Investigation began an investigation, searching his home and hearing testimony from multiple victims alleging that Epstein had assaulted them. In July 2006, Epstein was arrested on charges of procuring a minor for prostitution and solicitation of a prostitute. The day after Epstein was charged, Staley met him at his New York office, later writing to colleagues in an email disclosed as part of a court case brought by the US Virgin Islands against JPMorgan, that 'I've never seen him so shaken. He also adamently denies the ages.' This email, along with the others released during the court proceedings and used in Bloomberg's reporting, is quoted verbatim in this account, including errors in spelling and grammar. In September 2007, Epstein agreed to a plea deal with prosecutors in Florida. In June 2008, he pleaded guilty to procuring sex from a minor, and was sentenced to 18 months in prison. 'Just thinking about you,' Staley wrote in an email to Epstein days after he had begun his sentence. Weeks later he wrote again: 'I will miss stopping by your office for advice.' 'I miss you. The world is in a tough place. Hang in there.' Between June 30 2008 and July 22, 2009, Jeffrey Epstein was incarcerated in the Palm Beach County Stockade in Florida. Throughout that time, he was in regular contact with Staley, as well as numerous political and business leaders. Against the backdrop of the global financial crisis, Epstein and Staley talked about deals, bailouts and Staley's remuneration. 'Jamie wants me to tell him how much I should make this year, given the expected bank results and my results. To put it in context, my business will be down 15% this year. What do you think? I hope you're managing. I miss our calls. Its boring without you around? Do you have any books yet? Jes' July 18 email from Staley to Epstein, from JPM internal report released by USVI June 2023. In October 2008, Staley told Epstein JPMorgan was working with the US Federal Reserve on ways to help stabilize the financial system, and said he needed 'a smart friend to help me think through this stuff. Can I get you out for a weekend to help me.' Days later Staley forwarded Epstein sensitive details of the government's plans, including the term sheet for a new vehicle called Micawber, which would have borrowed money from the Fed to purchase the short-term debt of banks. Epstein didn't like the name. When, in December 2008, an investment fund run by Bernard Madoff was revealed to be a Ponzi scheme, leading to significant losses for several JPMorgan clients, Staley's colleague Mary Erdoes wondered if Epstein might be able to offer some advice. 'Jes-I know you are travelling but glenn and I have been going back and forth all night. This is terrible. Just terrible. [Redacted] has over 1b. Nicole has another client with 1b. We have HUNDREDS of clients with some. The ny/palm beach community will be in shock. Can you call JE to get scoop from down there?' Dec 12 email from Erdoes to Staley, from JPM internal report released by USVI June 2023. On or around Jan 15, 2009, Staley visited Epstein in prison. Over the course of the next six months, emails show Epstein attempting to broker meetings for Staley with business and political leaders, including Peter Mandelson, then a senior minister in the British government, and DP World CEO Sultan Ahmed bin Sulayem. Mandelson did not respond to requests for comment. A spokesperson for Sulayem declined to comment. On July 22, 2009, Epstein was released from prison to serve the rest of his sentence on home detention. 'Free and home,' Epstein wrote to Staley. 'I toast your courage!!!!!' Staley replied. Page Six As soon as the charges against Epstein were made public, Staley's colleagues at JPMorgan began to worry about the bank's exposure. On Sept. 20, 2007, days before Epstein made his plea deal, Mary Erdoes, then a senior executive in the private bank and now the bank's global head of asset management, sent Staley an email with the subject line 'NY Post', writing: 'Page Six'. 'What's on Six?' replied Staley. 'It's actually on page 14 in the 'page six' column. Epstein. Rumored 15 months jail with 15 months home confinement. Then a few details of one of the nights - yuck.' In July 2008, executives, including Staley, met to discuss 'concerns about the risks that Epstein posed,' according to documents disclosed during the US Virgin Islands' lawsuit. Some in the bank wanted to cut ties with Epstein after he began his sentence, but emails from the time suggest that Staley stood in their way. 'He [Staley] wants to keep his [Epstein's] accounts,' wrote one of the bank's staffers in a mid-July email. Epstein remained a so-called 'reactive' client whereby JPMorgan would not seek new business from him, but equally would do nothing to push him out. A few months after Epstein was released from prison, Staley was promoted to become head of JPMorgan's investment bank, one of the most prestigious positions on Wall Street. Staley first found out about his new role not from his bosses, but from Epstein, who had somehow got advance notice of his friend's promotion. Epstein immediately began advising Staley on how he should approach his new role, writing in October: 'my suggestion Your first Great move, should be a new CHina, initiative. first it was alternative investments now china.' Staley replied: 'Brilliant!' Soon, Epstein was once again helping Staley meet people who could further his career. JPMorgan was at the time trying to buy the Sempra commodities trading business from the Royal Bank of Scotland PLC, which had been bailed out by the UK government in 2008. With RBS in public hands, JPMorgan needed political support for the deal, so, in January 2010, Epstein helped broker meetings for Staley at Davos with Peter Mandelson, then a UK cabinet minister with responsibility for Britain's business department, now the British ambassador to the US, and with the chancellor of the time, Alistair Darling. 'My view Sempra is an asset that comes up once every ten years,' Epstein wrote to Staley. He followed up later asking 'was Petie helpful?' before adding: 'You can always portray the purchase as done by the investment bank, it should be the primary buyer.' In February 2010, RBS agreed to sell Sempra to JPMorgan for $1.7 billion. 'You are a great friend,' wrote Staley to Epstein a couple of days after the deal was announced, according to emails disclosed in March 2025 during the tribunal in London. Epstein was allowed to return to New York in 2011, where he was forced to register as a level three sex offender, a designation by the state that he had a 'high risk' of reoffending. His notoriety and regular presence in the media apparently alarmed JPMorgan's compliance team. In February 2011, the crime drama Law & Order: Special Victims Unit ran an episode about a wealthy and powerful defense contractor who had used an ex-girlfriend to force an underage girl to give him an 'inappropriate massage' — which some at JPMorgan assumed was inspired by reports of Epstein and Maxwell. That prompted one compliance staffer to email a colleague: 'Wanted to catch up on Epstein as he was the featured ripped from the headlines on Law and Order SVU this week,' they wrote, in an email disclosed in the US Virgin Islands' case. 'I also read that the state of ny in conjunction with Manhattan DA just two weeks ago ruled him a level 3 which is the highest you can be in ny.' In February and March 2011 there was a flurry of news coverage around Epstein, much of it related to his alleged relationship with the British royal, Prince Andrew. In March, Vanity Fair published an article about Prince Andrew and Epstein, which Epstein sent to Staley. Staley forwarded the message to Jonathan Schwartz, general counsel of the investment bank, who in turn sent it on to Stephen Cutler, the group's general counsel, and to JPMorgan's head of compliance. 'It is all very unseemly (to say the least),' Schwartz replied, 'and doesn't exactly make me think of the statement from JPM on many an executive's wall' — a reference to the motto of the bank's eponymous founder that it should do 'first-class business in a first-class way.' Cutler declined to comment. Over the next few weeks, according to email traffic disclosed during the US Virgin Islands lawsuit, JPMorgan's legal team worked the phones to try to establish whether, as press reports had suggested, the FBI was investigating new charges against Epstein. 'Kenny, Steve Cutler at JPM, says he has left a number of messages for you.. I would really appreciate it if you could call him . As I had mentioned to you, -He is the lead counsel for Morgan, and needs to be reassured that I am a good egg -Steve's cell: 1 917░░░░░░. Thanks in advance, and can't wait to see you face to face.' Email from Jeffrey Epstein to lawyer Kenneth Starr, Feb. 7 2011, from JPM internal report released by USVI June 2023. As the bank staff fretted over the risks that Epstein posed, Staley was concerned for his friend. In March 2011, less than a week after the UK's Daily Mail newspaper published a story about Epstein — including a photo of Prince Andrew with one of Epstein's accusers, Virginia Giuffre — Staley wrote to Epstein: 'Deby and I were talking tonight about what you have meant to me and to Alexa,' he wrote, referring to his wife, Debora, and eldest daughter, Alexa. 'You have paid a price for what has been accused. But we know what u have done for us. And we count you as one of our deepest friends. And most honest people.' Epstein replied with one word: 'family.' JPMorgan's Cutler and Schwartz discussed whether a new investigation would be enough to kick Epstein out. 'He's settled 16 private lawsuits on this stuff!?' wrote Cutler. 'Is that a rhetorical question? :-)' replied Schwartz. Staley was no longer head of the private bank, but emails and legal documents show he continued to involve himself in discussions about Epstein's accounts at JPMorgan. Although in April, Staley appeared to have agreed to step back and let his colleagues handle the issue, that didn't seem to stick. 'I don't believe that he was in any way sort of walled off from that decision or recused himself from that decision-making process,' Cutler said in a 2023 deposition. 'And indeed... I was asked by Mr Staley to hear Mr Epstein out.' In December 2011, according to his testimony during the deposition, Cutler was uncomfortable about the bank's relationship with Epstein, but couldn't convince Staley. 'I couldn't say to Mr Staley: 'I think what you're doing is illegal,' and I didn't think it was at the time,' Cutler said during his testimony. 'I understood he could have a different view, and he did.' 'So when all hell breaks lose, and the world is crumbling, I will come here, and be at peace. Presently, I'm in the hot tub with a glass of white wine. This is an amazing place. Truly amazing. Next time, we're here together. I owe you much. And I deeply appreciate our friendship. I have few so profound.' 'People Rarely Go to Albuquerque on Business' While Epstein was in jail in 2008, his correspondence with Staley revealed a shared interest in one-percenter luxuries Epstein's real estate and Staley's yacht, Bequia, which was still under construction at the time. The boat, Staley said in a July 2008 email released by the FCA in 2023, was coming along and 'wouldn't be there without your encouragement. 18 months until she is anchored in front of St Jeff' — the nickname the two men used for Epstein's private island, Little Saint James Island in the US Virgin Islands. During their friendship, Staley was a regular user of Epstein's extensive real estate portfolio, which included St Jeff, a spacious New York townhouse and the largest ranch in New Mexico, which Staley visited in 2009, sending a message from the hot tub extolling their friendship. At the London tribunal, Staley played down the significance of the visit. 'I wasn't there because of the ranch itself,' he said. 'I was there because I was in Albuquerque on business, and people rarely go to Albuquerque on business.' Epstein's staff appeared to have been instructed to make sure Staley was comfortable. There were sometimes frenetic email exchanges to ensure his New York mansion had Staley's favorite Stephen Vincent sauvignon blanc on hand whenever he was visiting, according to messages released by the FCA. On one occasion Epstein's assistants apologetically messaged Staley's office to let them know they had run dry of the mid-priced Californian white wine he usually drank, and that even efforts to call the winery directly had failed to source a fresh supply. 'Is there perhaps another sauvignon blanc that we could keep on hand for Jes?' wrote one of Epstein's assistants. Asked at the tribunal about the incident, Staley said that he 'occasionally' would have a glass of wine when he was at Epstein's townhouse, but couldn't remember the specifics. Staley's defense at the tribunal was that, while he and his family enjoyed Epstein's hospitality on several occasions, Epstein had never actually visited any of Staley's own properties. Staley owned a restaurant in New York, but he and Epstein had never dined there together. 'All my close friends have gone to that restaurant,' said Staley. 'He was never there… he was never at my home.' It was a persuasive line. However, the famously fastidious Epstein rarely dined out with anyone and did almost all of his entertaining at his own properties. The men's closeness went beyond their shared love of luxuries. Alexa, wanted to pursue an academic career in theoretical physics. In an April 2009 email, Epstein rattled off a list of some of the world's leading string theorists, offering to arrange time for her to sit down with them, as well as saying he could get Alexa a private tour of the Large Hadron Collider in Switzerland. Staley forwarded the message on to Alexa. 'This is from Uncle Jeffrey,' he wrote. Alexa Staley did not respond to a request for comment via her father's lawyers. Gates JS: '…What a paradise. When I retire, I'm going to put a mooring in front of your dock for my boat. Amazing place. I think Larry is sad... Jes." JE: 'do you want to join a gates dinner in davos on wed.?' January 22, 2011 It is unclear from available records if Jes Staley met with Bill Gates at the World Economic Forum in Davos in 2011, but soon afterwards, the then-richest man in the world visited Epstein in New York, emails show. 'I have gates alone for two days.. any input?' wrote Epstein. In early February 2011, Epstein presented Staley with an audacious idea. 'Donor advised fund,' wrote Epstein in a February 2011 email, proposing the creation of 'the largest foundation in the world,' originally tied to the Gates Foundation, but ultimately including donations from other wealthy people. 'Done right it's 100 billion dollars in 2 years,' Epstein wrote. The pitch to Staley was that JPMorgan would be 'an an integral part,' administering and investing the foundation's money. It was the type of deal that would ensure years worth of fees for the bank, and would be a massive coup for those involved. But to get the deal, JPMorgan would seemingly have to work with Epstein. 'I'm not a sexual predator, I'm an 'offender… It's the difference between a murderer and a person who steals a bagel.' Jeffrey Epstein in an interview with the New York Post, February 2011. 'Opportunities like the [donor advised fund] idea, originates with me. I cook it slowly, adding various ingredients almost fully cook it, and then want to turn it over to you.' Jeffrey Epstein in an email to Jes Staley and Mary Erdoes, August 26, 2011. Epstein's suggested cut for his work on the fund was 10% of JPMorgan's profits from the deal. But by October 2011 it was clear that the project was faltering. 'JES, the DAF is dying due to cross purpose,' wrote Epstein in an October 2 email. 'We need to speak.' Epstein's increasingly fraught emails to Erdoes over the Gates fund even led Staley to issue a rare rebuke to his friend. 'Stop pushing,' he wrote. By then the project was pretty much dead. A spokesperson for Gates said: 'Mr. Gates had no business partnership or friendship with Epstein and never met with him alone. Mr. Gates has consistently reiterated that he deeply regrets ever meeting with Epstein.' Project Jes July 2012 began well for Staley. His yacht Bequia came third in a prestigious regatta, the Pendennis Cup at the Royal Cornwall Yacht Club. As head of JPMorgan's investment bank, he was seen in some circles as the heir apparent for Jamie Dimon. And it seemed he might soon have a shot at the top job. On July 13, JPMorgan shocked Wall Street with the announcement of a $5.8 billion loss on a credit portfolio managed by its London-based CIO team. By the end of the year the loss from the 'London Whale' would be calculated at $6.2 billion. The scandal put pressure on Dimon, which Staley, allegedly, was ready to exploit. 'He thought I'd lose my job and that he could be the guy,' said Dimon, speaking in a 2023 deposition. Dimon said there was 'some evidence' Staley had attempted to replace him over his handling of the Whale situation, approaching board members to say that if they needed a new CEO, he was ready to step up. 'The board would never have put him in the job,' added Dimon. In the background, others were maneuvering on Staley's behalf. Working with a London-based consultant, Ian Osborne, Epstein was planning something the pair called 'Project Jes,' an attempt to get Staley appointed as CEO of Barclays. They discussed getting press coverage to 'float a trial balloon' linking Staley with the job. 'There is no downside for him at JPM to know that he is sufficiently good that the Barclays board are considering him for CEO,' Osborne wrote in a July email to Epstein. There was. By the end of the month Staley had been stripped of his management responsibilities and given a vague assignment to develop a 'view of what global banking will look like in the years ahead.' Weeks later, Barclays opted against hiring him, promoting an internal candidate, the British retail banker and former Citigroup Inc. executive Antony Jenkins, as its next CEO. Osborne declined to comment. At the age of 55 it appeared that Staley, who had joined JPMorgan in its personnel department more than three decades earlier, had overplayed his hand. Epstein, though, had not given up on Project Jes. With the writing on the wall for Staley at JPMorgan, Epstein and Osborne brought Staley together with Andrew Feldstein, the co-founder of New York hedge fund Blue Mountain, according to an itinerary included in the FCA's statement of case at the 2025 tribunal. Within weeks of the meeting, Staley had secured a job at Blue Mountain. Feldstein did not respond to a request for comment. In his traditional New Year's message to Epstein, Staley was effusive. 'Thanks for all the friendship this year,' he wrote. 'You were enormously kind and supportive. All looks good for next year. More freedom, more deals, more building, more things we can do together.' 'I'm in Hong Kong on my way to Singapore. All is good here with Jamie and I being best of friends… Feeling better about Blue.' Email from Jes Staley to Jeffrey Epstein, Oct. 30 2012 Eight days into 2013, Staley's career at JPMorgan came to a close. In a statement at the time, Dimon described Staley as 'an extraordinary leader and a valued partner.' Giving evidence in his deposition a decade on, the CEO had a more scathing take. 'Jes wasn't up to running the investment bank,' he said. 'He had all the senior people complaining.' With Staley gone from JPMorgan, Epstein's accounts at the bank came under scrutiny again. Bank staff, including the then-head of JPMorgan's private bank, John Duffy, had become concerned the previous year about seemingly odd cash transactions that the convicted pedophile had been making. Epstein had been withdrawing money, often tens of thousands of dollars at a time. Epstein argued that they were used to pay for jet fuel, since some airports would only accept cash. On July 19, 2013, Duffy emailed Erdoes with a message, outlining draft talking points for a conversation that Erdoes was to have with Epstein. It amounted to a list of reasons to remove him as a client, top of which was 'the repetitive nature of your cash transactions is a problem for us and our relationship with you.' The final message was blunt: 'Remediation is required and we need to ask you — in an orderly manner — to find another bank for your needs.' Some time in July 2013, the message was delivered to Epstein. Discarded by JPMorgan, Epstein quickly found a new home for his money at Deutsche Bank, a decision the German bank would come to regret, after it became a subject of a regulatory investigation, as well as the focus of a victims' lawsuit. Deutsche Bank declined to comment. Epstein seemed keen to widen his banking options. In December 2014, the Swiss bank UBS announced Staley's appointment as a non-executive director. On May 7, 2015, Staley formally joined the Swiss bank's board. Within weeks, Epstein was already looking for a way in. 'I would like a new investment person. Anyone at UBS?' he wrote. Staley would later say at the London tribunal that he had no memory of these exchanges. A month later, Epstein was back. Would it 'be possible to set up an account with UBS. Do not want to cause any problem for you, id start with 100 million,' wrote Epstein. 'I am getting closer to people here,' replied Staley. 'I'm in a board meeting. Let's talk about it.' But as Epstein attempted to insinuate his way into UBS using Staley's directorial clout, an even bigger prize came back into view for his old friend. 'Thanks for the flight and thanks for the lunch. Your place is crazy, and special. It has a warmth and silliness that makes it yours. I count u as a deep friend.' On July 8, 2015, Barclays deputy chairman Michael Rake announced that Jenkins would leave the bank. 'Notwithstanding Antony's significant achievements, it became clear to all of us that a new set of skills were required for the period ahead,' Rake said. The leading candidate to replace him was clear — the man they'd come so close to hiring three years before. Two days after Jenkins had walked out of the doors of the Barclays head office for the final time, Reuben Jeffrey, one of the bank's directors, emailed Staley with the subject line 'Developments' and suggested they meet in New York. A day later, Staley messaged Epstein with the news. 'A member of the board just reached out,' wrote Staley. Hours later he messaged Epstein again, forwarding information from the Barclays board nominations committee. 'Here we go,' he wrote. The pair seemed aware that their relationship could be a liability. 'Better if you not email me. Phone only,' wrote Epstein on July 24. Staley obliged, only sending emails to Epstein with the subject line 'Call my cell' or 'Call me'. By the fall, the short search process seemed to be at an end, and Staley once again emailed Epstein directly. 'You never wavered in our friendship these last three years,' he wrote. 'That means a lot too me... cross your toes!!!' Epstein replied: 'More than 10 years.' On Oct. 13, 2015, the news of Staley's appointment was leaked to the Financial Times. Three days later, Epstein forwarded Staley an email he had received from a Daily Mail journalist, asking him about their relationship. 'Don't worry,' wrote Staley the next day. 'We will be fine.' 'Ok. I'm going to play is simple. I've known you as a client. I will tell B tomorrow.' Email from Jes Staley to Jeffrey Epstein, Oct. 17, 2015. On Oct. 24 2015, the Mail on Sunday published a story on Staley's links to Epstein. To the relief of Barclays' communications staff — who had spent the past few days trying to limit the damage, according to people familiar with the situation — the piece didn't make the front page. The article alleged that Epstein had 'secretly backed' Staley for the Barclays job in 2012, which the bank and Staley disputed. It made no mention of the pair's long friendship, which the bank had denied in a legal letter, saying that Epstein was 'at best an acquaintance' of Staley. Staley did suggest removing the 'acquaintance' line and replacing it with a statement saying that he knew Epstein from his time at JPMorgan, but that 'they are certainly not close friends as your allegations might imply.' However, by the time his suggestions came in, the letter had already been sent. Two days after the story was published, Barclays chairman John McFarlane emailed Staley to warn that the British press 'is much more aggressive than anywhere else' and warned him to be careful. The bank's head of communications, Stephen Doherty, who had handled the Mail story, told Staley that he would have to cut ties with Epstein to avoid the bank being drawn into a scandal. On Oct. 28, McFarlane announced Staley's appointment, saying: 'He is a man of enormous integrity, and someone who both understands the business, but also the importance of cultural reform and the need to conduct our business in a way that we can all be proud of.' According to Staley's opening testimony, Barclays' new CEO called Epstein to tell him there would be no more communication between them. A Barclays spokesperson said via email that 'Mr Staley was appointed following a thorough hiring process which included customary diligence, background checks and references. At the time, there was no reason to believe he was not an appropriate candidate.' They declined to comment further, other than to confirm that the bank is not funding Staley's appeal against the FCA. The Intermediary Jes Staley said that his final communication with Jeffrey Epstein came in October or November of 2015. However, fragments of evidence have since emerged that questions whether their relationship had completely ended. Over the next few years, Epstein corresponded on several occasions with Alexa, Staley's eldest daughter. 'What did you decide to do? How's Dad doing,' wrote Epstein in a March 16, 2016 email. 'My dad has been doing well overall, but it's been very busy,' she replied. After Donald Trump was elected president of the US in 2016, Epstein floated a major opportunity, again via Alexa. Jeffrey Epstein: 'Could you ask your dad if he would like to considered for treasury' Alexa Staley: 'Will do. He's on a plane to London right now but I'll reach him after. Hope all is well.' JE: 'great' AS: 'Spoke with him. He said not yet, but thanks.' Correspondence between Jeffrey Epstein and Alexa Staley, November 27, 2016; Exhibit 109 in USVI disclosure, Sept 8 2023; names and details of conversants unredacted during FCA skeleton argument March 3 2025. Epstein sent a third message to Alexa three months later, this time asking for the older Staley's advice on whether a former JPMorgan colleague of his would be a good fit for a senior job at Rothschild. 'He thinks she is great and is big fan of hers. Good recommendation for Rothschild,' Alexa wrote back. A fourth and final message from Epstein to Alexa came a couple of weeks later as Epstein appeared to be involved in helping a senior Middle Eastern contact get in contact with her father. 'Just called him. They've been connected and have a meeting. Thanks!' Alexa replied. The Fall On July 6, 2019, Epstein was arrested as he disembarked from his private jet at Teterboro Airport in New Jersey. Two days later, he was charged with sex trafficking and conspiracy to traffic minors for sex. A grand jury indictment alleged that 'dozens' of underage girls had been brought to his properties for Epstein to abuse. A later trial of Epstein's former girlfriend Ghislaine Maxwell heard evidence that young women and girls, often from vulnerable backgrounds, were enticed by money or promises of education or employment into Epstein's household and abused, often repeatedly. In December 2021, Maxwell was convicted of conspiracy to entice minors to travel to engage in illegal sex acts, conspiracy to transport minors with intent to engage in criminal sexual activity, transportation of a minor with intent to engage in criminal sexual activity, conspiracy to commit sex trafficking and sex trafficking of minors. Epstein was found dead in his cell at the Metropolitan Correction Center in New York on Aug. 10, 2019. The New York City medical examiner declared the death a suicide. After Epstein's death, prosecutors and victims started to look for others who could be held accountable for his crimes. That included the institutions that had worked with the convicted sex offender. In the US Virgin Islands, where Epstein had his island estate, Attorney General Denise George issued subpoenas to some of the most powerful institutions and individuals on Wall Street, including JPMorgan. After collecting reams of documentation, she filed a lawsuit against JPMorgan in December 2022, accusing it of playing a role in enabling Epstein to finance and run his sex-trafficking empire — although she was fired shortly afterwards. By then, in November 2022, lawyers for Epstein's victims had filed their own lawsuit against JPMorgan. The bank took the unusual step of enjoining Staley to the case, saying that if it ended up losing in court, it intended to pursue its former employees for all the costs it faced. JPMorgan paid $290 million to settle the victims' lawsuit, and $75 million to settle the US Virgin Islands case, without admitting wrongdoing. George did not respond to a request for comment. Thanks to the lawsuits from the US Virgin Islands and the victims, huge volumes of evidence, including emails between Epstein and Staley, were put into the public domain. 'This is an urgent personal matter, I would appreciate receiving a call from you or your attorney later today.' Email to Jes Staley from Brad Edwards, a Florida-based attorney who had represented many of Epstein's victims, six days after Epstein's arrest. Staley did not reply. Weeks after Epstein's arrest in July 2019, reports of his relationship with Jes Staley were published in the New York Times, Wall Street Journal and Bloomberg News. In the UK, the Financial Conduct Authority became concerned about the revelations. In mid-August 2019, the FCA asked Barclays chairman Nigel Higgins to write a letter to the regulator explaining how the bank had satisfied itself that there was no 'impropriety' in the relationship between Staley and Epstein. By October, the letter was ready. Staley had told his colleagues that, while he had known Epstein, he had no knowledge of his crimes, and had had no contact with him since joining Barclays. The bank's letter to the FCA claimed that Staley did not have a close relationship to Epstein, and the pair had not been in contact for some time before Staley's appointment as CEO. On November 22, JPMorgan contacted the FCA. After Epstein's arrest, the bank had begun reviewing Staley's communications with Epstein. They unearthed more than 1,200 emails and other contacts. JPMorgan told the UK regulator that its investigation had uncovered information pointing to a personal relationship between Staley and Epstein, and that they would be prepared to share their files, if compelled to do so by the FCA. 'I did not have a presumption of guilt, not until I read the emails.' Then-Bank of England Governor Mark Carney, according to testimony from then-FCA head Andrew Bailey. On February 13 2020, the day Barclays was due to report full-year results, the bank revealed that Staley was being investigated over his links to Epstein. 'I have full support from the chairman and from the board,' Staley said, speaking to Bloomberg Television that day. 'But there is a regulatory process that is ongoing and we'll let that run its course.' In late October 2021 the FCA finally informed Barclays of the preliminary results of its investigation. On November 1, Staley announced his resignation. Endgame The Upper Tribunal is not a typical London court. In the Rolls Building of London's Royal Courts of Justice, the judge sits flanked by a pair of experts seconded from the financial services industry to hear the most controversial and high-profile legal cases between the FCA and those it seeks to punish. On March 10, 2025, tanned and in a dark suit, Staley took his seat in the witness box. When he testified, he spoke quietly and at times seemed to struggle with the proceedings. At one point, his lawyer asked if Staley could have a notebook to help him respond to questions. The main thrust of his case was that the letter sent from Barclays to the FCA was a collective response from the bank, with multiple drafts and multiple people involved. The FCA, Staley's team said, had never been clear about what information it was seeking. Whenever he was directly asked about his ties with Epstein, Staley answered using a stock phrase: 'I had a close professional relationship.' But the court case was also a challenge to the FCA to relitigate its case, meaning that it once again delved into the evidence against Staley. On the eighth day of the trial, it became clear just what Staley had opened himself up to. The FCA's lead lawyer Leigh-Ann Mulcahy asked for bundles of papers to be distributed around the court, the information being too sensitive to be shown on the screens visible from the public seating at the back of the room. After waiting for Staley to read the documents, Mulcahy began her questioning. 'I am going to put some questions to you based on what we understand based on the evidence you gave in your deposition on oath in the US proceedings arising out of the passages that you have looked at,' she said. Then came the bombshell. 'You accept, do you, that you had sexual intercourse with a woman at Mr Epstein's apartment on East 66th Street, or Mr Epstein's brother's apartment on East 66th Street?' said Mulcahy. 'Yes,' replied Staley. 'She was someone connected with Mr Epstein wasn't she?' Mulcahy continued. 'Yes,' replied Staley. 'And you met this woman through Mr Epstein?' said Mulcahy. 'She was part of his staff as I recall,' said Staley. In a 2023 court filing, lawyers for some of Epstein's victims described the apartment on East 66th Street as a 'stash house,' where trafficked women were kept. The filing also alleged that Staley had 'personally observed' the sexual abuse of young women at the apartment. Staley has previously denied any knowledge of Epstein's crimes, and any involvement in them. Here, in court, Staley himself was confirming that not only had he gone to the apartment, but he'd done so to have sex with a member of Epstein's staff. During an earlier cross-examination, which discussed his daughter Alexa, Staley had been visibly angry. But as he faced questions about his marital infidelity, he remained composed, keeping his answers short. Speaking after the hearing had concluded, but before the judgment Warner, Staley's old boss at JPMorgan, shook his head at what Staley had brought upon himself. 'It's just incredible to me that Jes would think it's the right idea to raise this in a London court,' said Warner. 'Involving his kids, his wife, talking about it all, it boggles my mind.' If Staley had hoped the appeal would rehabilitate his reputation, the judgment did the opposite. In Herrington's decision — his last before retirement — he noted that the tribunal found that Staley's evidence 'lacked credibility' and 'could be inconsistent… when he felt that it would suit his case.' 'Mr Staley chose to take a calculated risk that we would take his inaccurate account of his relationship with Mr Epstein at face value,' Therese Chambers, the FCA's joint executive director of enforcement and market oversight, said in a statement on Thursday. 'He hoped that the truth would never come to light and that he would get away with it. Such a serious lack of integrity flies in the face of the requirements we place on those at the top.' Staley has 14 days to appeal the ruling. Speaking immediately after the judgment, Brad Edwards, a lawyer for several of Epstein's victims, said that while his clients want to see more than just fines for people who were connected to Epstein, they would likely welcome the outcome of Staley's appeal. 'To the extent there has been any accountability, I know my clients well enough that they will be happy to hear about this, and about anything where the truth comes out,' he said. The case against Staley, and the huge volumes of messages between Epstein and other influential figures in global finance that are now in the public domain, speak to wider issues of judgment and ethics in the banking sector. The documents and messages released over the past two years show that Epstein was allowed to remain a client of JPMorgan for years despite a conviction for sex crimes, and that he continued to operate within the highest echelons of the industry. But so far, there has been scant reckoning for the sector. Instead, when big scandals break, 'it is treated as a reputation issue,' said Louise Ashley, an associate professor at Queen Mary University. 'The changes that are made are quite cosmetic. There isn't really a commitment to fundamental structural change.' Ashley said that means the FCA needs to show that it has teeth if it wants to drive deeper behavioral change in the City of London. 'It obviously has a certain power, but is working in a sector where the institutions that it regulates are also powerful,' she said. 'The whole thing about this which is so depressing is that it's a reminder that powerful men tend to get protected by each other. And yet it still comes as a bit of a shock when you see it in plain sight.' During the hearings, Staley did find some sympathy. On the ninth day of the hearing, he had a supporter in the gallery: Crispin Odey, a London-based hedge fund manager, who, was accused of sexual misconduct in a civil case brought by two women in 2023 and of rape in a separate civil case in 2024. Odey denies the charges and is suing the Financial Times, which in 2023 published a report on his alleged sexual misconduct, for libel. Odey is also facing a ban by the FCA. Odey did not respond to requests for comment. After Staley had finished giving evidence that day, he was seen engaged in conversation with Odey at the top of the flight of stairs on the first floor of the court. 'It's f**king terrible what we are being put through at the moment,' said Odey to Staley as a Bloomberg reporter walked between the men. Opener video illustration by 731. Video: Bloomberg Editors: Peter Guest and Edward Evans More On Bloomberg Terms of Service Do Not Sell or Share My Personal Information Trademarks Privacy Policy Careers Made in NYC Advertise Ad Choices Help ©2025 Bloomberg L.P. All Rights Reserved.
Yahoo
5 hours ago
- Business
- Yahoo
Barclays, ex-CEO Staley must face US shareholder lawsuit over Jeffrey Epstein ties
By Jonathan Stempel NEW YORK (Reuters) -Barclays and former Chief Executive Jes Staley must face a lawsuit in Los Angeles claiming they defrauded shareholders about Staley's close ties to the disgraced late financier Jeffrey Epstein. U.S. District Judge Maame Ewusi-Mensah Frimpong ruled on Wednesday that holders of Barclays' American Depositary Receipts plausibly alleged the defendants intended to mislead them to protect the bank's reputation and prop up its stock price. Investors said the fraud ran from July 22, 2019, about two weeks after Epstein's arrest, through October 12, 2023, and continued even after Barclays learned about an email cache showing Staley viewed Epstein as "family." They cited public statements suggesting the relationship was purely professional, and that an inquiry by Britain's Financial Conduct Authority concerned mainly whether Staley was aware of Epstein's alleged sex crimes, not whether he witnessed some. Frimpong narrowed two claims against a third defendant, Barclays Group Chairman Nigel Higgins. Pension funds in New York and St. Louis lead the proposed class action, which seeks unspecified damages. Staley's lawyers did not immediately respond to requests for comment on Thursday. Lawyers for Barclays and Higgins did not immediately respond to similar requests. The shareholders' lawyers also did not immediately respond to such requests. Epstein was arrested on July 6, 2019, on federal sex trafficking charges, and killed himself in a Manhattan jail cell five weeks later. Staley was Barclays' chief executive from 2015 to 2021. He was previously a top banker and JPMorgan Chase, where he also had a close relationship with Epstein. Staley lost his appeal in London on Thursday against a proposed financial industry ban announced by the FCA in 2023 for misleading the regulator about Epstein. Staley maintained that he didn't know about Epstein's "monstrous activities" and did not remember embarrassing emails. He said he was disappointed with Thursday's decision. The U.S. shareholder case is Merritt v Barclays Plc et al, U.S. District Court, Central District of California, No. 23-09217. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 hours ago
- Business
- Reuters
Barclays, ex-CEO Staley must face US shareholder lawsuit over Jeffrey Epstein ties
NEW YORK, June 26 (Reuters) - Barclays (BARC.L), opens new tab and former Chief Executive Jes Staley must face a lawsuit in Los Angeles claiming they defrauded shareholders about Staley's close ties to the disgraced late financier Jeffrey Epstein. U.S. District Judge Maame Ewusi-Mensah Frimpong ruled on Wednesday that holders of Barclays' American Depositary Receipts plausibly alleged the defendants intended to mislead them to protect the bank's reputation and prop up its stock price. Investors said the fraud ran from July 22, 2019, about two weeks after Epstein's arrest, through October 12, 2023, and continued even after Barclays learned about an email cache showing Staley viewed Epstein as "family." They cited public statements suggesting the relationship was purely professional, and that an inquiry by Britain's Financial Conduct Authority concerned mainly whether Staley was aware of Epstein's alleged sex crimes, not whether he witnessed some. Frimpong narrowed two claims against a third defendant, Barclays Group Chairman Nigel Higgins. Pension funds in New York and St. Louis lead the proposed class action, which seeks unspecified damages. Staley's lawyers did not immediately respond to requests for comment on Thursday. Lawyers for Barclays and Higgins did not immediately respond to similar requests. The shareholders' lawyers also did not immediately respond to such requests. Epstein was arrested on July 6, 2019, on federal sex trafficking charges, and killed himself in a Manhattan jail cell five weeks later. Staley was Barclays' chief executive from 2015 to 2021. He was previously a top banker and JPMorgan Chase (JPM.N), opens new tab, where he also had a close relationship with Epstein. Staley lost his appeal in London on Thursday against a proposed financial industry ban announced by the FCA in 2023 for misleading the regulator about Epstein. Staley maintained that he didn't know about Epstein's "monstrous activities" and did not remember embarrassing emails. He said he was disappointed with Thursday's decision. The U.S. shareholder case is Merritt v Barclays Plc et al, U.S. District Court, Central District of California, No. 23-09217.
