Jes Staley, the former chief executive of Barclays, appeared before US lawmakers on Thursday for a closed-door interview regarding his past connections with convicted child sex offender Jeffrey Epstein. The session was conducted by the House Committee on Oversight and Reform as part of its ongoing investigation into Epstein, who died in prison in August 2019 while awaiting trial on child sex-trafficking charges.
Staley Joins List of High-Profile Witnesses
Staley, who spent over 30 years at JPMorgan Chase before leading Barclays from 2015, is the latest prominent figure to testify before the panel. The committee has previously released transcripts or videos of interviews with Bill and Hillary Clinton, Bill Gates, and former Goldman Sachs top lawyer Kathyrn Ruemmler. A transcript of Staley's interview is expected to be released later.
Career-Ending Ties
Staley's association with Epstein ultimately ended his banking career. He resigned as Barclays CEO in November 2021 after UK regulators launched an investigation into his ties to Epstein. Initially, Barclays stated the pair “did not have a close relationship.” However, the Financial Conduct Authority (FCA) investigation, triggered by 1,200 emails from Staley's time at JPMorgan, concluded they were “indeed close” and had a relationship “that went beyond one that was professional in nature.” The FCA subsequently banned Staley from any financial sector role in the UK for downplaying those ties.
Legal Challenges and Penalties
Staley unsuccessfully challenged the FCA's ruling in court. During the hearing, he admitted to having sex with a member of Epstein's staff in New York, describing it as “consensual.” The court upheld the ban, and Staley lost £18 million ($24 million) in pay and bonuses from Barclays. After the ruling, Staley expressed disappointment but maintained he was “never dishonest.” He previously stated in 2020, “obviously I thought I knew him well, and I didn't” and “with hindsight of what we all know now, I deeply regret having had any relationship with Jeffrey Epstein.”
Background of the Relationship
Staley first met Epstein in 2000 when he became head of JPMorgan's private bank, where Epstein was a client. They remained in contact even after Epstein pleaded guilty in Florida to solicitation of prostitution and solicitation of prostitution with a minor. Staley visited Epstein while he was serving his sentence and on work release. Staley claims their relationship tapered off after he left JPMorgan, with their final meeting in 2015 when Staley took his yacht, the Bequia, to Epstein's private island.
Legal Fallout and Ongoing Scrutiny
In March 2023, JPMorgan Chase sued Staley, arguing he should be liable for penalties from lawsuits accusing the bank of facilitating Epstein's sex trafficking. The parties reached a confidential settlement later that year. Recently, documents from the US Department of Justice, reported by the Guardian, revealed that prosecutors reviewed allegations of rape and serious bodily harm against a woman by Staley, though no charges were filed. Staley has denied any wrongdoing and has never been charged. Barclays stated the FCA concluded the bank was “misled by Jes Staley,” and its own internal investigation was based on available information at the time.
