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LONDON: Barclays chief govt Jes Staley is to step down following a probe by British regulators into his ties with convicted intercourse offender Jeffrey Epstein, ending a controversial six 12 months reign on the lender marked by his profitable backing of its funding financial institution in opposition to an activist investor.
Staley shall be changed as CEO by the financial institution’s head of world markets CS Venkatakrishnan, who on Monday pledged to proceed his predecessor’s technique.
Barclays mentioned it was made conscious on Friday night of the preliminary conclusions from the Monetary Conduct Authority and the Prudential Regulatory Authority’s investigation into Staley’s characterisation to Barclays of his relationship with Epstein and the following description of that relationship in Barclays’ response to the regulator.
“In view of these conclusions, and Mr Staley’s intention to contest them, the Board and Mr Staley have agreed that he’ll step down from his position as Group Chief Govt and as a director of Barclays,” the financial institution mentioned.
“It must be famous that the investigation makes no findings that Mr Staley noticed, or was conscious of, any of Mr Epstein’s alleged crimes, which was the central query underpinning Barclays’ assist for Mr Staley following the arrest of Mr Epstein in the summertime of 2019.”
Barclays shares fell 2% following the announcement.
Barclays mentioned final 12 months that Britain’s monetary regulators have been probing hyperlinks between Staley and Epstein, who killed himself whereas awaiting trial on intercourse trafficking offences. Staley has beforehand mentioned his relationship with Epstein, which he now regrets, resulted in late 2015.
The FCA and PRA mentioned in a press release they might not remark additional on the Epstein investigation.
Staley instructed employees in an inner memo seen by Reuters that he didn’t need his ‘private response’ to the investigations to be a distraction.
“Though I can’t be with you for the subsequent chapter of Barclays’ story, know that I shall be cheering your success from the sidelines,” he mentioned.
In a separate inner memo additionally seen by Reuters, Venkatakrishnan, generally known as Venkat, instructed employees the technique put in place by Staley at Barclays was the “proper one”, though he added that he would announce adjustments to the organisation of the company and funding financial institution within the coming days.
UK regulators launched their investigations into hyperlinks between Staley and Epstein after JPMorgan offered them with emails the 2 exchanged when Staley was the pinnacle of JPMorgan’s non-public financial institution, the Monetary Instances reported final 12 months.
The financial institution’s share worth has fallen 9% since Staley turned CEO in December 2015.
Barclays fought off a marketing campaign launched by activist investor Edward Bramson in 2018 to have Staley eliminated. Bramson bought his stake earlier this 12 months.
Britain’s monetary regulators and Barclays fined Staley a mixed 1.1 million kilos ($1.50 million) in 2018 after he tried to establish a whistleblower who despatched letters criticising a Barclays worker.
Staley shall be changed as CEO by the financial institution’s head of world markets CS Venkatakrishnan, who on Monday pledged to proceed his predecessor’s technique.
Barclays mentioned it was made conscious on Friday night of the preliminary conclusions from the Monetary Conduct Authority and the Prudential Regulatory Authority’s investigation into Staley’s characterisation to Barclays of his relationship with Epstein and the following description of that relationship in Barclays’ response to the regulator.
“In view of these conclusions, and Mr Staley’s intention to contest them, the Board and Mr Staley have agreed that he’ll step down from his position as Group Chief Govt and as a director of Barclays,” the financial institution mentioned.
“It must be famous that the investigation makes no findings that Mr Staley noticed, or was conscious of, any of Mr Epstein’s alleged crimes, which was the central query underpinning Barclays’ assist for Mr Staley following the arrest of Mr Epstein in the summertime of 2019.”
Barclays shares fell 2% following the announcement.
Barclays mentioned final 12 months that Britain’s monetary regulators have been probing hyperlinks between Staley and Epstein, who killed himself whereas awaiting trial on intercourse trafficking offences. Staley has beforehand mentioned his relationship with Epstein, which he now regrets, resulted in late 2015.
The FCA and PRA mentioned in a press release they might not remark additional on the Epstein investigation.
Staley instructed employees in an inner memo seen by Reuters that he didn’t need his ‘private response’ to the investigations to be a distraction.
“Though I can’t be with you for the subsequent chapter of Barclays’ story, know that I shall be cheering your success from the sidelines,” he mentioned.
In a separate inner memo additionally seen by Reuters, Venkatakrishnan, generally known as Venkat, instructed employees the technique put in place by Staley at Barclays was the “proper one”, though he added that he would announce adjustments to the organisation of the company and funding financial institution within the coming days.
UK regulators launched their investigations into hyperlinks between Staley and Epstein after JPMorgan offered them with emails the 2 exchanged when Staley was the pinnacle of JPMorgan’s non-public financial institution, the Monetary Instances reported final 12 months.
The financial institution’s share worth has fallen 9% since Staley turned CEO in December 2015.
Barclays fought off a marketing campaign launched by activist investor Edward Bramson in 2018 to have Staley eliminated. Bramson bought his stake earlier this 12 months.
Britain’s monetary regulators and Barclays fined Staley a mixed 1.1 million kilos ($1.50 million) in 2018 after he tried to establish a whistleblower who despatched letters criticising a Barclays worker.
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