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In 1999, the aboriginal Barclays main enforcement Jes Staley was gearing up for his biggest occupation yet. As caput of JP Morgan’s backstage bank, helium would beryllium successful complaint of a sprawling squad that managed wealth and investments for immoderate of the world’s richest people.
Among them was the mysterious but well-connected billionaire Jeffrey Epstein, with whom helium would rapidly make a “fairly adjacent nonrecreational relationship”.
Staley was soon holidaying connected Epstein’s backstage island, flying connected his backstage plane, and gaining entree to an awesome portfolio of ministers, entrepreneurs and royalty. The narration ended up bolstering Staley’s illustration connected Wall Street and adjacent connecting his girl to elder figures astatine Ivy League universities.
It besides helped to extremity his career.
In July 2019, Epstein was arrested connected kid enactment trafficking charges, accused of sexually exploiting and abusing dozens of girls astatine homes successful Manhattan and Palm Beach, Florida. Some victims were arsenic young arsenic 14, US prosecutors alleged. Epstein, who was successful jailhouse arsenic helium awaited trial, was recovered dormant successful his situation cell weeks later.
The revelations astir Epstein led to a media storm, bringing renewed attraction to his erstwhile friends and concern associates, including Staley. Barclays told the Financial Conduct Authority successful October 2019 that the brace “did not person a adjacent relationship” and were past successful interaction “well before” Staley took implicit arsenic main enforcement 4 years earlier.
But a consequent FCA investigation, involving a cache of 1,200 emails from JP Morgan, convinced the regulator it had been misled. It alleged that the brace were so adjacent friends and stayed successful interaction via Staley’s girl for years aft helium joined Barclays.
It was not Staley’s archetypal run-in with the FCA, having been fined £642,000 for trying to unmask a whistleblower successful 2018. It was, however, the last straw: helium was issued a good of £1.8m and banned from holding elder absorption roles successful the City successful 2023, starring to him losing astir £18m worthy of pay.
The 68-year-old fought backmost successful an entreaty this spring, arguing that helium had ever been transparent with Barclays and had followed interior ineligible proposal connected the letter’s phrasing, which was meant to emphasise that helium had nary cognition of Epstein’s crimes. Judges on Thursday ruled successful the FCA’s favour, upholding the beingness City ban.
March’s two-week tribunal proceeding successful London besides gave the archetypal nationalist relationship of Epstein’s relation successful Staley’s life. This is what the tribunal heard.
The brace did not conscionable by chance, but connected the proposal of JP Morgan’s past main executive, Douglas “Sandy” Warner, who felt that Epstein – already a lawsuit – was idiosyncratic the recently appointed caput of the backstage slope should know.
The brace “got connected well”, according to Staley’s lawyers, and Epstein’s career-boosting imaginable rapidly became clear. He would notation affluent friends to Staley, galore of whom turned into JP Morgan clients.
The 2 men occasionally socialised, Staley said, explaining that helium would sometimes plaything by Epstein’s location successful Manhattan for a portion oregon dinner. And, from 2005, helium took his household connected the archetypal of a fistful of trips to Epstein’s Caribbean island, Little St James.
Staley was adamant that Epstein was ne'er portion of his interior circle, was ne'er invited to the household home, immoderate “milestone birthdays”, oregon “personal meals successful restaurants”. Staley said helium had fewer idiosyncratic friends and remains a loner. “From what I recall, Jes didn’t person precise galore friends,” his erstwhile main of unit Sasha Wiggins told the tribunal successful March.
And Staley said parts of Epstein’s beingness ever remained a mystery. “I truly didn’t cognize however overmuch wealth helium had,” Staley said. “What his inheritance was, was ever benignant of shrouded.”
By 2006, the disguise started to slip. Epstein was arrested aft constabulary successful Florida were tipped disconnected that helium was recruiting young girls for massages and intersexual encounters. He pleaded blameworthy to soliciting prostitution from a insignificant and successful 2008 helium was sentenced to 18 months successful jail.
Staley stayed successful contact, though, and visited Epstein aft his indictment. He said Epstein did not contradict that helium solicited a prostitute, but maintained that helium thought the girls were implicit 18. “Obviously helium lied to me,” Staley told the tribunal successful March.
He visited Epstein again successful astir 2009, erstwhile helium was connected a situation enactment merchandise programme successful Florida. Staley said helium reported the sojourn to JP Morgan, which was reviewing whether to support Epstein arsenic a client.
But emails suggest helium had been leaning connected the imprisoned Epstein for proposal passim the fiscal crisis, penning successful October 2008: “I americium dealing with the Fed connected an thought to lick things. I request a astute person to assistance maine deliberation done this stuff. Can I get you retired for a play to assistance maine (are they listening?).”
The tribunal heard that Staley turned to Epstein to assistance link his girl – a physics large – with scientists and elder professors astatine Ivy League universities. The financier, who Staley referred to arsenic “Uncle Jeffrey”, would aboriginal beryllium invited to her graduation successful 2015. Staley stressed that helium did not past cognize of Epstein’s crimes.
Wiggins told the court: “Mr Staley said to maine once: ‘Why would I person introduced my woman and daughters to Mr Epstein if I thought helium was a paedophile?’”
When Epstein was released connected location apprehension successful July 2009, Staley was 1 of the 4 radical helium emailed to say: “Free and home.” Staley replied: “I toast your courageousness !!!!!”
But much cryptic messages betwixt the 2 stirred the astir controversy, including an speech astir Disney princesses successful July 2010. “That was fun. Say hullo to Snow White,” Staley wrote. “What quality would you similar next?” Epstein asked, to which Staley replied: “Beauty and the Beast.” “Well 1 broadside is available,” Epstein responded. Staley told the tribunal helium was not capable to explicate the exchange.
Months earlier, successful September 2009, Epstein emailed a pistillate to say: “Jes staley is staying astatine the berkeley edifice successful London tonight.” Staley said helium could not callback the crushed down the message.
That twelvemonth Staley’s vocation took different leap, with his promotion to pb JP Morgan’s concern bank. Even the main executive, Jamie Dimon, was singing his praises, telling Fortune magazine: “Jes has impeccable quality and integrity.”
The caller relation meant Epstein was nary longer a nonstop client. But that did not extremity their relationship, oregon Staley’s effusive messages.
In November 2009, Staley detoured from a enactment travel to sojourn Epstein’s ranch successful New Mexico, replete with a 26,700sq ft mansion, backstage airstrip, and seven-bay heated garage. He emailed Epstein successful thanks: “So erstwhile each hellhole breaks suffer [sic], and the satellite is crumbling, I volition travel here, and beryllium astatine peace. Presently, I’m successful the blistery tub with a solid of achromatic wine. This is an astonishing spot … I beryllium you much. And I profoundly admit our friendship. I person fewer truthful profound.”
In December, months aft Epstein’s release, the brace yet recovered clip to conscionable successful person. “I recognize the information successful sending this email. But is [sic] was large to beryllium able, today, to springiness you, successful New York City, a agelong heartfelt hug. To my friend, Thanks. Jes.”
At times, their emails were much explicit: discussing enactment scandals and lovers. One message, sent from a debutante shot that Staley attended successful November 2010, told Epstein that Staley had seen “your person … she says u slept with her!!”
Epstein separately sent photos, 1 of which was of a pistillate successful a low-cut ballgown. “You were with Larry, and one had to enactment up with …,” Epstein wrote.
When FCA lawyers suggested this enactment was a motion that helium and Epstein were “personally close”, Staley said specified behaviour was not uncommon betwixt radical who were “professionally adjacent – you know, if you’ve ever worked connected a trading level connected Wall Street”.
Staley said determination were parts of his beingness helium kept from Epstein, including having enactment with a subordinate of Epstein’s staff. “Oftentimes I would spell to Epstein’s flat and helium would beryllium late, and she and I got the accidental to cognize each other.” This led to intersexual intercourse, helium said, “much to my embarrassment today”.
The erstwhile banker, who has a woman and 2 daughters, said the confession came astatine a idiosyncratic cost. “I person been honorable specified that I person enactment my matrimony astatine hazard … I person ne'er shied distant from telling the information astir each of this.”
The day of the brushwood was not disclosed successful court, but the FCA revealed that Epstein’s erstwhile worker had “carved” Staley retired of a colony she had reached with Epstein’s estate. “I was not alert of that,” Staley told the court.
Despite the allegedly concealed encounter, Epstein and Staley would nonstop messages declaring their adjacent ties, referring to each different arsenic family. In 1 speech successful March 2011, Epstein writes: “Told you −−−− family.” Staley replied with 1 word: “Family”.
Behind the scenes, Epstein’s banking narration with JP Morgan was starting to unravel.
The slope was considering dumping Epstein arsenic a lawsuit but was cautious astir broaching the contented with Staley, saying they were friends. “He needs to recognize the imaginable backlash to the steadfast fixed each the enactment done to basal retired clients progressive successful quality trafficking,” an interior memo said.
Staley tried to person the bank’s apical lawyer to “hear [Epstein] out”, according to a JP Morgan gathering note. He besides revealed to Epstein that his transactions were nether review. Staley admitted to sharing interior accusation with Epstein but denied having pushed the slope to support him arsenic a client.
Panic had acceptable successful by September 2009, erstwhile Epstein told Staley a “family gathering was required”. Epstein was acrophobic astir an “abusive reporter”, and instructed Staley connected however to respond: “I deliberation your effect should beryllium [that] each of the incidents that they rise happened a decennary ago, I paid my indebtedness and similar everyone other should beryllium fixed different chance.”
Epstein said helium had been “unaware of the afloat vigor that you person taken arsenic a effect of our friendship”, adding: “I’m sorry.”
Epstein hired a London lobbyist for a 2012 run to marque Staley Barclay’s main executive, dubbed “Project Jes”. In emails, the lobbyist claimed helium hoped to person top-level policymakers, including George Osborne, who was the past chancellor, and Mervyn King, the Bank of England governor, to enactment Staley. The banker said helium ne'er knew astir the push.
Barclays yet installed its ain head of retail and concern banking, Antony Jenkins, whose ousting 3 years aboriginal led to Staley’s leadership.
In aboriginal 2013, Staley near JP Morgan, moving to the hedge money Blue Mountain Capital. At this point, Staley claimed, his narration with Epstein started to decline.
But the FCA alleged that their connection did not wither, pointing to a drawstring of emails successful aboriginal 2013 successful which the brace discussed meal plans, caller enactment telephone numbers and planned meet-ups. Staley besides kept up an yearly contented of emailing Epstein connected New Year’s Eve.
The declarations of relationship continued successful January 2015, erstwhile Staley told Epstein: “The spot of a Greek service was that its halfway held enarthrosis to shoulder, and would not fly oregon break, nary substance the threat. That is us.”
That year, Epstein was backmost successful the media’s crosshairs. An anonymous pistillate had filed a suit alleging she was repeatedly sexually abused by Epstein betwixt 1999 and 2002, and that helium had loaned her retired to affluent and influential men.
By April that year, Staley had what helium says was his past in-person gathering with Epstein, having again taken his household to sojourn the financier’s backstage island. “Thanks for the formation and acknowledgment for the lunch. Your spot is crazy, and peculiar … I number u arsenic a heavy friend. The girls seemed to bask the sail. All the champion Jes.”
Within months, Staley was taking different stab astatine the Barclays job, and kept Epstein abreast of developments. Weeks earlier the appointment, Staley emailed: “Cross your toes !!!”
Staley was backmost successful interaction days earlier receiving his Barclays contract: “We’re precise close.”
The British tabloids, however, were circling, having already pounced connected different salient fig with ties to the convicted enactment offender.
News of Prince Andrew’s narration with Epstein had caused a media frenzy as aboriginal arsenic 2011, years earlier a disastrous BBC interrogation that led to the prince being forced to measurement backmost from nationalist duties successful 2019.
Days earlier Staley was confirmed arsenic Barclays’ caller boss, the Mail connected Sunday was chasing up claims that Epstein lobbied Barclays to prosecute Staley successful some 2012 and 2015. Epstein forwarded the newspaper’s queries to Staley, who aboriginal replied: “Ok. I’m going to play is [sic] simple. I’ve known you arsenic a client. I volition archer B tomorrow. Let maine cognize if they accidental thing else. But enactment distant from them. I’m fine.”
The nonfiction was published with the headline: “Andrew’s billionaire paedophile person secretly backed caller Barclays brag for job”.
Staley said helium chopped interaction with Epstein days later, pursuing “strong advice” from Barclays. “I telephoned Mr Epstein and told him that we could not ever again person communication, which helium accepted. The narration ended there. I person had nary connection with him since then,” Staley told the court.
There is nary grounds of nonstop interaction betwixt the 2 men aft October 2015, but the FCA alleged they stayed successful interaction via Staley’s girl until astatine slightest February 2017.
Emails amusement that Epstein asked Staley’s girl to inquire the recently installed main executive’s sentiment connected different bankers, to effort to link Staley with royalty successful the Middle East, and to inquire whether Staley was funny successful a station with the US Treasury. Staley said helium did not callback immoderate of those conversations, and helium did not realise astatine the clip that his girl and Epstein were inactive corresponding.
The tribunal connected Thursday raised concerns successful its judgement astir Staley’s evidence, saying helium “could beryllium inconsistent successful his answers erstwhile helium felt that it would suit his case”, adding that helium had “shown nary remorse for his conduct”.
Judges person sided with the FCA, upholding its City prohibition and scuppering efforts to reconstruct his reputation.
And portion the tribunal reduced his good from £1.8m to £1.1m, this was to bespeak wage helium mislaid from Barclays arsenic a effect of the FCA ruling. It is not wide however overmuch Staley has paid successful ineligible costs trying to situation the UK regulator.
Staley said successful a statement: “I americium disappointed by the result and the clip it took for this process to play retired – that was wholly beyond my control. As the tribunal accepted, I was ne'er dishonest. It took years of arguing with the authorization and until November 2024 to found that fact, and it took much clip for the fiscal punishment to beryllium reduced by 40%.
“I person worked tirelessly for my anterior employers for the entirety of my career. I americium arrogant of the enactment I gave to galore individuals during that vocation and the strategy I developed to assistance Barclays erstwhile it faced immense challenges. The tribunal recognised what they described arsenic ‘my agelong and distinguished career’.”
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