Assurances from Barclays Chairman Postponed Investigation into CEO's Connections with Jeffrey Epstein

Recent tribunal findings reveal that Nigel Higgins' remarks to the FCA in 2019 delayed an inquiry into Jes Staley's association with Epstein.

In August 2019, amid heightened media scrutiny regarding Jes Staley's links to Jeffrey Epstein, Barclays Chairman Nigel Higgins reassured the UK's Financial Conduct Authority (FCA) that there was no significant connection between the bank’s CEO and the disgraced financier.

This reassurance prompted the FCA to postpone further investigation into the issue, as revealed during a recent tribunal hearing.

Jonathan Davidson, the FCA’s then-director responsible for major banks, testified that Higgins' remarks on August 15, 2019, indicated that Staley and Epstein did not have a close relationship.

As a result, the FCA saw no urgent necessity for additional inquiry.

In October 2019, Barclays sent a letter to the FCA asserting that Staley "did not have a close relationship with Mr. Epstein" and that their last interaction occurred well before Staley’s arrival at Barclays in 2015.

However, later, the FCA discovered over 1,200 emails and messages from Staley's time at JPMorgan, which revealed a closer relationship with Epstein than had been portrayed.

These communications implied that Staley and Epstein had a personal relationship, with Epstein allegedly playing a role in Staley's career by connecting him with government officials, business leaders, and royalty.

In December 2019, the FCA launched a formal investigation, dubbed "Operation Downey." Initial findings led to Staley’s resignation from Barclays in 2021. By 2023, the FCA concluded that Staley had acted dishonestly by providing misleading information about his relationship with Epstein, resulting in a £1.8 million fine and a prohibition from holding senior roles in the UK financial sector.

Staley is currently contesting the FCA’s ruling, claiming that his relationship with Epstein was professional and that he did not mislead the regulator.

The tribunal is ongoing, examining evidence that includes testimonies from Barclays executives and FCA officials to evaluate the nature of Staley's connection with Epstein and the accuracy of his disclosures to the FCA.