Former Barclays chief executive Jes Staley is about to take a major risk.
Nearly two and a half years after he was banned from the City for allegedly lying about the extent of his relationship with Jeffrey Epstein, the former banking boss is hoping to convince judges to overturn the reputation-shattering ruling.
But taking the UK’s financial regulator to court could come at a personal cost. Challenging the Financial Conduct Authority (FCA) will mean dredging up potentially damaging allegations and having reams of correspondence paraded through an open courtroom for two weeks, as the regulator backs up its claims that Staley hid how close he was to the late sex offender.
Staley’s efforts to restore his credibility will also force some of the biggest names in the City to take the stand in one of the most high-profile hearings to take place at London’s Upper Tribunal in years.
Bank of England governor Andrew Bailey – who led the FCA during Staley’s tenure – and Barclays chair Nigel Higgins have been dragged into the matter, and are due to give evidence and face questioning before the media from next week.
Staley – who ultimately lost £18m in bonuses and pay as a result of the FCA ruling – will also face three and a half days of questioning during the hearing, according to the two-week court schedule.
The 68-year-old will be revisiting events that led to his resignation in 2021, when the FCA handed him a preliminary decision over its investigation into his relationship with Epstein. Epstein had died in prison two years earlier, while awaiting trial on charges of trafficking underage girls for sex.
In 2023, the regulator banned Staley from holding any senior role in the City, saying he had misled the regulator over his relationship. Staley immediately pledged to challenge the ruling.
The FCA’s legal team is expected to defend its decision strongly. On top of evidence gathered during its own multi-year investigation, the regulator will draw on documents from Epstein’s estate, as well as Staley’s former employer JP Morgan, which battled separate legal hearings related to its dealings with Epstein in the US in recent years.
That includes more than 1,200 emails and email chains, some of which the FCA is keen to stress “would not be exchanged between … individuals who were anything other than close friends”.
Correspondence between the pair shows they shared messages about sex, women, and foreign holidays, with Staley referring to Epstein as “family”.
One notorious exchange from 2010 saw the two discuss Disney princesses. Staley tells Epstein “that was fun. Say hi to Snow White.”
“What character would you like next?” Epstein asks, to which Staley replies: “Beauty and the Beast.”
The FCA will also try to prove that Epstein worked behind the scenes to help Staley’s career, liaising with UK government officials, including Lord Mandelson, as well as business leaders and royalty to support the banker.
Meanwhile, it hopes to show that Staley shared confidential business information with Epstein, including about his own salary negotiations, unreleased shareholder letters, and legal action involving Epstein, even when this raised a conflict of interest with Staley’s then employer JP Morgan.
That is in addition to allegations that Staley’s daughter Alexa was used as an “intermediary” to pass messages between the pair after Staley joined Barclays, between 2016 and 2017.
Staley has claimed he cut ties with the disgraced financier before taking the reins at Barclays in late 2015. He issued a statement in 2023, saying: “If I had known who JE [Jeffrey Epstein] really was, there is absolutely no doubt that I wouldn’t be in the position I am in today. Prior to undertaking my former role, it was known that I had had a relationship with JE.”
Other witnesses scheduled to give evidence include Sasha Wiggins, Barclays’ former chief of staff and head of public policy who now leads its private bank, and Bob Hoyt, who previously served as Barclays’ top lawyer until 2020, when he moved over to HSBC. Stephen Doherty, the bank’s former head of corporate relations, who has since moved to Aviva, is also due to face questioning.
The FCA and representatives for Staley declined to comment.
Article by:Source: Kalyeena Makortoff Banking correspondent
