US Banking Watchdogs Launch Epstein-Related Investigation
American financial regulators have confirmed they are treating allegations that senior bankers facilitated Jeffrey Epstein's criminal activities with the utmost seriousness. The investigation follows demands from prominent US senator Elizabeth Warren to examine executives including former Barclays chief Jes Staley.
The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) have both acknowledged reviewing Senator Warren's concerns about banking support for the convicted sex offender. Correspondence obtained by the Guardian reveals regulators' commitment to addressing potential misconduct within the financial sector.
Jes Staley's Controversial Connections
Senator Warren specifically highlighted Jes Staley, alleging he protected Epstein's banking access during his tenure at JP Morgan in the early 2000s. Staley has already faced consequences in the UK, receiving a banking ban for downplaying his relationship with Epstein.
Jonathan Gould, Comptroller of the Currency, assured Warren in writing: "While it would be inappropriate to comment on any specific ongoing supervisory matter, I take very seriously any allegations of wrongdoing or abuse by banks and bank executives."
The regulatory scrutiny extends to JP Morgan's extensive banking relationship with Epstein, who remained one of the bank's most profitable clients until being dropped in 2013. This occurred five years after Epstein's initial conviction for soliciting prostitution from a minor.
Regulatory Response and Potential Consequences
Travis Hill, acting FDIC chair, emphasised in his November 17th correspondence that the regulator treats "unlawful activity involving the banking sector, including possible insider involvement in illicit activity, very seriously."
The FDIC has established protocols for such investigations, including evidence collection and potential escalation to their inspector general's office, which possesses law enforcement powers. Banking executives found culpable could face substantial fines and permanent bans from working in the US financial sector.
Senator Warren maintained her scepticism about regulatory action, stating: "Regulators need to investigate and hold accountable Epstein's enablers – and I'll believe they're taking action when I see it. Americans deserve to know that their banking system isn't facilitating the disturbing crimes of the rich and powerful."
JP Morgan's Defence and Wider Implications
JP Morgan responded to the allegations by expressing regret over their association with Epstein but denied facilitating his crimes. A bank spokesperson stated: "We ended our relationship with him six years before his arrest on sex trafficking charges. The federal government had damning information about his crimes that they failed to share with us or other banks."
Warren recently used an appearance on The Late Show with Stephen Colbert to intensify pressure on JP Morgan CEO Jamie Dimon, calling for him to testify under oath about the bank's handling of Epstein's accounts. She revealed that JP Morgan processed over $1 billion in transactions for Epstein through approximately 134 different accounts.
The bank countered that Dimon never met or communicated with Epstein, and that their involvement with the financier is well-documented through millions of pages of publicly available discovery documents from litigation.
This regulatory development coincides with upcoming releases of US justice department records related to Epstein and his associate Ghislaine Maxwell, expected around December 19th following recent legislative action.
