Andrew Bailey Accused of Destroying Jes Staley's Career Amid Epstein Investigation

Barclays chair claims FCA's actions severely impacted the former CEO's position following links to Jeffrey Epstein.

Andrew Bailey, the governor of the Bank of England, faced serious allegations made by Nigel Higgins, the chair of Barclays, during a court hearing held on Friday.

Higgins accused Bailey of having 'destroyed' Jes Staley, the former CEO of Barclays, after the Financial Conduct Authority (FCA), which Bailey led at the time, initiated an investigation into Staley's connections with convicted sex offender Jeffrey Epstein.

In a witness statement, Bailey recounted conversations with Higgins from 2019 regarding the possibility of Staley resigning from Barclays to avoid scrutiny from the FCA.

Bailey noted that they discussed the potential for Staley to step down, which might have been appealing for both Barclays and Staley himself.

However, Bailey explained that it would have been impractical to disregard a series of emails from JP Morgan, where Staley had connections, including an exchange that referred to Disney princess characters.

The infamous emails, dating back to 2010, depicted a conversation in which Staley reached out to Epstein with the message, 'say hi to Snow White.' Epstein's response asked, 'what character would you like next?' to which Staley replied, 'Beauty and the Beast.' During his testimony, Bailey highlighted the necessity of addressing the contents of these emails in the investigation.

Higgins's notes from a conversation with Bailey reportedly included the phrase, 'you have destroyed him,' referring to Staley.

Bailey affirmed his recollection of the conversation but stated that he did not perceive evidence that Staley lacked integrity.

This was revealed during Bailey's testimony at the upper tribunal.

The court proceedings continued with Bailey seated close to Staley, who was being cross-examined by Robert Smith KC. Staley is attempting to overturn a 2023 FCA decision that barred him from holding senior positions in the UK finance sector following the FCA’s conclusion that he had misled regulators regarding his relationship with Epstein.

Staley resigned from Barclays in 2021 amid preliminary findings of the investigation, which were formally communicated in 2023. Staley’s legal team contends that members of the Barclays board were fully informed of the nature and extent of his relationship with Epstein.

Jeffrey Epstein died in prison in August 2019 while awaiting trial on several serious charges, including trafficking underage girls for sex.

The FCA's investigation was reportedly initiated after JP Morgan provided over 1,200 emails exchanged between Staley and Epstein, suggesting their relationship was 'indeed close' and extended beyond a professional basis.

The regulator cited communications that included discussions about personal matters such as sex, women, and vacation excursions, as well as claims that Epstein had helped further Staley's career by facilitating contacts with influential figures.

The legal proceedings commenced on Monday and are scheduled to continue until at least 14 March, with both Higgins and Staley expected to testify in the coming week.