You are here: Home » International » News » Companies
Business Standard

Barclays CEO steps down over Epstein report by UK regulators

C S Venkatakrishnan, head of global markets for the bank, will take over as chief executive; shares take a hit

Topics
Barclays | UK

Associated Press  |  London 

CS Venkatakrishnan
CS Venkatakrishnan

The chief executive of British bank stepped down Monday following a report by United Kingdom regulators into his past links with the late financier and sex offender Jeffrey Epstein.

Jes Staley has previously said he “deeply regrets” his relationship with Epstein, who killed himself at a federal jail in New York in August 2019 while awaiting a sex trafficking trial. There is no suggestion that the 64-year-old Staley knew anything about Epstein’s alleged crimes.

Staley said he will contest regulators’ preliminary conclusions, which were shared with him and the bank Friday. The report by the Financial Conduct Authority and the Prudential Regulation Authority examined the way Staley characterized his relationship with Epstein to when he was Epstein's private banker in his previous job at US investment bank JP Morgan.

In a statement Monday, noted that the investigation “makes no findings” that Staley saw or knew about any of Epstein's alleged crimes, which it said was "the central question” behind its decision to back its chief executive following Epstein's arrest in summer 2019.

Staley said his last contact with Epstein was in fall 2015, when he and his wife sailed to Epstein's private island for lunch. That trip occurred sho­r­tly before he joined Bar­clays. He said he had no contact with Epstein once he joi­ned the bank in December 2015.

CS Venkatakrishnan, head of global markets for the bank, will take over as chief executive. Barclays said succession planning has been in place for some time, and he had been identified as the preferred candidate more than a year ago. Shares in Barclays fell 2% following the announcement, as Staley had been widely credited with doing a good job at the bank.

"Barclays is right to pull the plug now,” said Neil Wilson, chief market analyst at Markets.com. “It probably could have done it earlier.” The bank said Staley will get a 2.5 million pound ($3.5 million) payout and receive other benefits for a year. He also may be eligible to receive repatriation costs to the US and could receive more cash.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 02 2021. 03:35 IST
RECOMMENDED FOR YOU
.