Jes Staley, who ran Barclays between 2015 and 2021, is making an attempt to overturn a lifetime ban from the Metropolis – Andy Rain/EPA-EFE/Shutterstock
Barclays’ former chief government sought to defend his relationship with Jeffery Epstein by claiming he was a “loner”, a courtroom has heard.
Jes Staley instructed the Metropolis watchdog in 2019 that he had solely a small circle of buddies and Epstein couldn’t be classed amongst them. Throughout an interview with the Monetary Conduct Authority (FCA), he stated most people he related to have been his spouse’s buddies, not his.
Leigh-Ann Mulcahy KC, representing the FCA, instructed a listening to on Monday that Mr Staley had stated “a private friendship could be far broader” than his relationship with Epstein.
Mr Staley stated in 2019: “He and I by no means went out for dinner at a restaurant … we by no means went for a drink … we by no means went to soccer video games collectively.
“It was not a private friendship within the sense he by no means got here to my home.”
Mr Staley, who ran Barclays between 2015 and 2021, is making an attempt to overturn a lifetime ban from the Metropolis over claims he misled the watchdog over the character of his relationship with Epstein, the paedophile financier.
Mr Staley acted as a non-public banker to Epstein throughout his time at JP Morgan, the place he labored for greater than 30 years earlier than becoming a member of Barclays. Epstein was jailed for baby intercourse offences in 2008 and was arrested once more in 2019. He died in jail that 12 months whereas awaiting trial for intercourse trafficking offences.
The 2019 FCA interview transcript varieties a key piece of proof in Mr Staley’s try and overturn his ban and a £1.8m advantageous imposed by the watchdog in 2023.
In a letter to the FCA in 2019, reviewed by Mr Staley, Barclays claimed that its chief government didn’t have a “shut relationship” with Epstein and their final contact was “nicely earlier than” he joined the financial institution in December 2015.
Nevertheless, the FCA concluded the letter was deceptive and that Mr Staley acted “recklessly and with out integrity” by permitting it to be despatched. The watchdog’s attorneys instructed a tribunal on Monday that he and Epstein had a “friendship” and maintained contact by means of Mr Staley’s daughter as much as at the very least February 2017.
Ms Mulcahy KC instructed the courtroom: “Whereas the origin of the connection was skilled it developed into a private relationship.”
Mr Staley is difficult the FCA’s findings and the ban on the Higher Tribunal in London. A listening to was instructed that there was “inherent improbability” that he would have tried to mislead the watchdog.
In written submissions, Robert Smith KC, performing for Mr Staley, stated that his consumer “has by no means tried to hide his relationship with Mr Epstein” and insisted the 2019 letter aimed solely to “guarantee the authority that neither Barclays nor Mr Staley had had any data of or involvement in” Epstein’s prison actions.
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He stated: “In stating, because the letter did, that Mr Staley’s relationship with Mr Epstein had not been ‘shut’, its function was to convey the truth that the character of the connection was not one which might have resulted in Mr Staley changing into conscious of Mr Epstein’s misconduct.”
Jes Staley has beforehand stated he ‘deeply regrets’ his relationship with Jeffrey Epstein (pictured) – New York State Intercourse Offender Registry by way of AP
Whereas Mr Staley visited Epstein’s Caribbean island on a crusing vacation in April 2015, Mr Smith stated these weren’t “circumstances through which Mr Staley would have turn out to be conscious of what was now being alleged in opposition to Mr Epstein”.
Mr Smith additionally stated that Mr Staley “doesn’t settle for that the e-mail correspondence passing between Mr Epstein and his daughter constituted contact between himself and Mr Epstein”. The pair’s relationship was “professionally shut” and “firmly grounded in enterprise”, Mr Staley’s lawyer insisted.
The courtroom submission acknowledged: “Anybody studying the e-mail correspondence in its entirety ought to attain the clear opinion that the vary of his contacts and affect just isn’t solely astonishing however might be with out precedent. The worth of Mr Epstein to Mr Staley is apparent, given Mr Staley’s personal distinguished place in banking and the monetary sector.”
The FCA opposes Mr Staley’s case, with its barristers calling the advantageous “acceptable”.
In written submissions, Ms Mulcahy KC, stated emails confirmed Mr Staley describing Epstein as like “household” and considered one of his “deepest” and “most cherished” buddies. Between March 2016 and February 2017, Mr Staley’s daughter, Alexa Staley, was used as an middleman, the FCA asserts.
In March 2016, Epstein emailed Ms Staley asking: “how’s dad doing?”, and after the US presidential election in November 2016, requested: “Might you ask your dad if he want to be thought of for treasury.”
She replied: “Spoke with him. He stated not but, however thanks. Alexa.”
Ms Mulcahy instructed the courtroom that the FCA didn’t “search to criticise Mr Staley for his selection of friendship” with Epstein and “just isn’t looking for to ascertain any type of guilt by affiliation”.
Nevertheless, she stated Mr Staley had “repeatedly mis-stated the extent of the connection” and “allowed an inaccurate image to be introduced”.
She stated: “What he was not entitled to do was make false statements to the authority about his friendship when requested about it.”
Mr Staley, who beforehand stated he “deeply regrets” his relationship with the disgraced financier, appeared on the tribunal on Monday and can give proof later this month.
Excessive-profile Metropolis figures are additionally set to offer proof, together with Financial institution of England Governor Andrew Bailey, who was the chief government of the FCA between 2016 and 2020.
The listening to earlier than Tim Herrington, Higher Tribunal choose, and Martin Fraenkel and Cathy Farquharson, each Higher Tribunal members, is because of conclude in April.