Barclays CEO Jes Staley steps down over probe into links with Jeffrey Epstein

Chief Executive Officer Jes Staley of British bank Barclays had decided to step down from the position on Monday following a probe into links with convicted sex offender Jeffrey Epstein, the bank said in a statement, as per CNBC. The UK's Financial Conduct Authority and the Prudential Regulation Authority investigated Staley's connection to Epstein after JP Morgan Chase provided the officials with emails between the two men. For the time being, C.S. Venkatakrishnan will replace Staley as the CEO with immediate effect, subject to regulatory approval.

Following the beginning of the probe, Barclays claimed that it was unaware of the same until Friday and asserted that Staley would contest the findings as he was "not aware of any crimes committed," CNBC reported. "Mr. Staley’s characterisation to Barclays of his relationship with the late Mr. Jeffrey Epstein and the subsequent description of that relationship in Barclays’ response to the FCA," Barclays said in a statement, as quoted by CNBC. Shares of Barclay witnessed a steep drop of 9% and traded at 1.2% after the announcement made on Monday morning.

Reportedly, Staley was a private banker to Epstein in his previous job. Epstein was arrested in July 2019 for abusing dozens of underage girls in his New York and Palm Beach mansions between 2002 and 2005. Epstein was remanded to Manhattan Federal jail after he was convicted of sex trafficking in 2019. Epstein was in judicial custody as cases against him were pending to be heard, however, in August 2019 he committed suicide in his cell by hanging.

Board disappointed with "regulatory process" against Staley

Staley's links to Epstein had remained subject of an investigation by UK financial regulators after two years of the latter's death has "disappointed" senior members of the bank. "It should be noted that the investigation makes no findings that Mr. Staley saw, or was aware of, any of Mr. Epstein's alleged crimes, which was the central question underpinning Barclays' support for Mr. Staley following the arrest of Mr. Epstein in the summer of 2019, the bank said in a statement, as per ABC. The bank also refused to comment further. The British financial watchdogs also fined Staley a combined $1.82 million in 2018 after he tried to identify a whistleblower.

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