Excessive flyer to pariah: the saga of Epstein-linked banker Jes Staley

[ad_1] I n 1999, the long run Barclays chief govt Jes Staley was gearing up for his largest job but. As head of JP Morgan’s personal financial institution, he could be in command of a sprawling crew that managed cash and investments for a number of the world’s richest folks.

Amongst them was the mysterious however well-connected billionaire Jeffrey Epstein, with whom he would rapidly develop a “pretty shut skilled relationship”.

Staley was quickly holidaying on Epstein’s personal island, flying on his personal aircraft, and getting access to a powerful portfolio of ministers, entrepreneurs and royalty. The connection ended up bolstering Staley’s profile on Wall Avenue and even connecting his daughter to senior figures at Ivy League universities.

It additionally helped to finish his profession.

In July 2019, Epstein was arrested on little one intercourse trafficking prices, accused of sexually exploiting and abusing dozens of ladies at houses in Manhattan and Palm Seaside, Florida. Some victims had been as younger as 14, US prosecutors alleged. Epstein, who was in jail as he awaited trial, was discovered lifeless in his jail cell weeks later.

The revelations about Epstein led to a media storm, bringing renewed consideration to his former buddies and enterprise associates, together with Staley. Barclays advised the Monetary Conduct Authority in October 2019 that the pair “didn't have an in depth relationship” and had been final involved “effectively earlier than” Staley took over as chief govt 4 years earlier.

However a subsequent FCA investigation, involving a cache of 1,200 emails from JP Morgan, satisfied the regulator it had been misled. It alleged that the pair had been certainly shut buddies and stayed in contact through Staley’s daughter for years after he joined Barclays.

Jes Staley arrives at 10 Downing Avenue in January 2018. {Photograph}: Peter Nicholls/Reuters It was not Staley’s first run-in with the FCA, having been fined £642,000 for making an attempt to unmask a whistleblower in 2018. It was, nonetheless, the ultimate straw: he was issued a effective of £1.8m and banned from holding senior administration roles within the Metropolis in 2023, resulting in him dropping about £18m value of pay.

The 68-year-old fought again in an enchantment this spring, arguing that he had all the time been clear with Barclays and had adopted inner authorized recommendation on the letter’s phrasing, which was meant to stress that he had no data of Epstein’s crimes. Judges on Thursday dominated within the FCA’s favour, upholding the lifetime Metropolis ban.

March’s two-week tribunal listening to in London additionally gave the primary public account of Epstein’s function in Staley’s life. That is what the court docket heard.

The pair didn't meet by probability, however on the advice of JP Morgan’s then chief govt, Douglas “Sandy” Warner, who felt that Epstein – already a shopper – was somebody the newly appointed head of the personal financial institution ought to know.

The pair “obtained on effectively”, in accordance with Staley’s attorneys, and Epstein’s career-boosting potential rapidly turned clear. He would refer rich buddies to Staley, lots of whom became JP Morgan shoppers.

The 2 males sometimes socialised, Staley mentioned, explaining that he would typically swing by Epstein’s house in Manhattan for a drink or dinner. And, from 2005, he took his household on the primary of a handful of journeys to Epstein’s Caribbean island, Little St James.

Staley was adamant that Epstein was by no means a part of his inside circle, was by no means invited to the household house, any “milestone birthdays”, or “private meals in eating places”. Staley mentioned he had few private buddies and stays a loner. “From what I recall, Jes didn’t have very many buddies,” his former chief of employees Sasha Wiggins advised the court docket in March.

And Staley mentioned elements of Epstein’s life all the time remained a thriller. “I actually didn’t know the way a lot cash he had,” Staley mentioned. “What his background was, was all the time kind of shrouded.”

Certainly one of Jeffrey Epstein’s properties on his personal island, Little St James, US Virgin Islands. {Photograph}: Marco Bello/Reuters By 2006, the masks began to slide. Epstein was arrested after police in Florida had been tipped off that he was recruiting younger women for massages and sexual encounters. He pleaded responsible to soliciting prostitution from a minor and in 2008 he was sentenced to 18 months in jail.

Staley stayed involved, although, and visited Epstein after his indictment. He mentioned Epstein didn't deny that he solicited a prostitute, however maintained that he thought the women had been over 18. “Clearly he lied to me,” Staley advised the court docket in March.

He visited Epstein once more in round 2009, when he was on a jail work launch programme in Florida. Staley mentioned he reported the go to to JP Morgan, which was reviewing whether or not to maintain Epstein as a shopper.

However emails recommend he had been leaning on the imprisoned Epstein for recommendation all through the monetary disaster, writing in October 2008: “I'm coping with the Consumed an thought to resolve issues. I would like a wise buddy to assist me assume by these items. Can I get you out for a weekend to assist me (are they listening?).”

Jeffrey Epstein in a photograph taken in 2017 for the intercourse offender registry in New York. The court docket heard that Staley turned to Epstein to assist join his daughter – a physics main – with scientists and senior professors at Ivy League universities. The financier, who Staley known as “Uncle Jeffrey”, would later be invited to her commencement in 2015. Staley harassed that he didn't then know of Epstein’s crimes.

Wiggins advised the court docket: “Mr Staley mentioned to me as soon as: ‘Why would I've launched my spouse and daughters to Mr Epstein if I assumed he was a paedophile?’”

When Epstein was launched on home arrest in July 2009, Staley was one of many 4 folks he emailed to say: “Free and residential.” Staley replied: “I toast your braveness !!!!!”

However extra cryptic messages between the 2 stirred essentially the most controversy, together with an alternate about Disney princesses in July 2010. “That was enjoyable. Say hello to Snow White,” Staley wrote. “What character would you want subsequent?” Epstein requested, to which Staley replied: “Magnificence and the Beast.” “Nicely one aspect is offered,” Epstein responded. Staley advised the court docket he was not in a position to clarify the alternate.

Months earlier, in September 2009, Epstein emailed a lady to say: “Jes staley is staying on the berkeley lodge in London tonight.” Staley mentioned he couldn't recall the rationale behind the message.

That 12 months Staley’s profession took one other leap, together with his promotion to steer JP Morgan’s funding financial institution. Even the chief govt, Jamie Dimon, was singing his praises, telling Fortune journal: “Jes has impeccable character and integrity.”

Jeffrey Epstein with the British socialite Ghislaine Maxwell. {Photograph}: Zuma Press/Alamy The brand new function meant Epstein was now not a direct shopper. However that didn't finish their relationship, or Staley’s effusive messages.

In November 2009, Staley detoured from a piece journey to go to Epstein’s ranch in New Mexico, replete with a 26,700sq ft mansion, personal airstrip, and seven-bay heated storage. He emailed Epstein in thanks: “So when all hell breaks lose [sic], and the world is crumbling, I'll come right here, and be at peace. Presently, I’m within the sizzling tub with a glass of white wine. That is a tremendous place … I owe you a lot. And I deeply admire our friendship. I've few so profound.”

In December, months after Epstein’s launch, the pair lastly discovered time to fulfill in individual. “I notice the hazard in sending this e-mail. However is [sic] was nice to find a way, at the moment, to offer you, in New York Metropolis, an extended heartfelt hug. To my buddy, Thanks. Jes.”

At occasions, their emails had been extra express: discussing intercourse scandals and lovers. One message, despatched from a debutante ball that Staley attended in November 2010, advised Epstein that Staley had seen “your lover … she says u slept together with her!!”

Epstein individually despatched pictures, considered one of which was of a lady in a low-cut ballgown. “You had been with Larry, and that i needed to put up with …,” Epstein wrote.

When FCA attorneys recommended this interplay was an indication that he and Epstein had been “personally shut”, Staley mentioned such behaviour was not unusual between individuals who had been “professionally shut – you recognize, should you’ve ever labored on a buying and selling ground on Wall Avenue”.

Staley mentioned there have been elements of his life he stored from Epstein, together with having intercourse with a member of Epstein’s employees. “Oftentimes I might go to Epstein’s house and he could be late, and he or she and I obtained the prospect to know one another.” This led to sexual activity, he mentioned, “a lot to my embarrassment at the moment”.

The previous banker, who has a spouse and two daughters, mentioned the confession got here at a private value. “I've been sincere such that I've put my marriage in danger … I've by no means shied away from telling the reality about all of this.”

The date of the encounter was not disclosed in court docket, however the FCA revealed that Epstein’s former worker had “carved” Staley out of a settlement she had reached with Epstein’s property. “I used to be not conscious of that,” Staley advised the court docket.

Regardless of the allegedly secret encounter, Epstein and Staley would ship messages declaring their shut ties, referring to one another as household. In a single alternate in March 2011, Epstein writes: “Advised you −−−− household.” Staley replied with one phrase: “Household”.

Behind the scenes, Epstein’s banking relationship with JP Morgan was beginning to unravel.

The financial institution was contemplating dumping Epstein as a shopper however was cautious about broaching the problem with Staley, saying they had been buddies. “He wants to know the potential backlash to the agency given all of the work achieved to root out shoppers concerned in human trafficking,” an inner memo mentioned.

Jes Staley leaving court docket in March 2025 following the primary day of his tribunal enchantment. {Photograph}: Isabel Infantes/Reuters Staley tried to persuade the financial institution’s high lawyer to “hear [Epstein] out”, in accordance with a JP Morgan assembly notice. He additionally revealed to Epstein that his transactions had been beneath assessment. Staley admitted to sharing inner info with Epstein however denied having pushed the financial institution to maintain him as a shopper.

Panic had set in by September 2009, when Epstein advised Staley a “household assembly was required”. Epstein was involved about an “abusive reporter”, and instructed Staley on how one can reply: “I believe your response needs to be [that] all the incidents that they elevate occurred a decade in the past, I paid my debt and like everybody else needs to be given one other probability.”

Epstein mentioned he had been “unaware of the complete warmth that you've taken on account of our friendship”, including: “I’m sorry.”

Epstein employed a London lobbyist for a 2012 marketing campaign to make Staley Barclay’s chief govt, dubbed “Undertaking Jes”. In emails, the lobbyist claimed he hoped to persuade top-level policymakers, together with George Osborne, who was the then chancellor, and Mervyn King, the Financial institution of England governor, to assist Staley. The banker mentioned he by no means knew in regards to the push.

Barclays finally put in its personal head of retail and enterprise banking, Antony Jenkins, whose ousting three years later led to Staley’s management.

In early 2013, Staley left JP Morgan, shifting to the hedge fund Blue Mountain Capital. At this level, Staley claimed, his relationship with Epstein began to say no.

However the FCA alleged that their communication didn't wither, pointing to a string of emails in early 2013 during which the pair mentioned dinner plans, new work cellphone numbers and deliberate meet-ups. Staley additionally stored up an annual custom of emailing Epstein on New 12 months’s Eve.

The declarations of friendship continued in January 2015, when Staley advised Epstein: “The energy of a Greek military was that its core held shoulder to shoulder, and wouldn't flee or break, irrespective of the menace. That's us.”

That 12 months, Epstein was again within the media’s crosshairs. An nameless girl had filed a lawsuit alleging she was repeatedly sexually abused by Epstein between 1999 and 2002, and that he had loaned her out to wealthy and influential males.

By April that 12 months, Staley had what he says was his final in-person assembly with Epstein, having once more taken his household to go to the financier’s personal island. “Thanks for the flight and thanks for the lunch. Your house is loopy, and particular … I rely u as a deep buddy. The women appeared to benefit from the sail. All the perfect Jes.”

Inside months, Staley was taking one other stab on the Barclays job, and stored Epstein abreast of developments. Weeks earlier than the appointment, Staley emailed: “Cross your toes !!!”

Staley was again in contact days earlier than receiving his Barclays contract: “We’re very shut.”

The British tabloids, nonetheless, had been circling, having already pounced on one other outstanding determine with ties to the convicted intercourse offender.

Information of Prince Andrew’s relationship with Epstein had triggered a media frenzy as early as 2011, years earlier than a disastrous BBC interview that led to the prince being compelled to step again from public duties in 2019.

Days earlier than Staley was confirmed as Barclays’ new boss, the Mail on Sunday was chasing up claims that Epstein lobbied Barclays to rent Staley in each 2012 and 2015. Epstein forwarded the newspaper’s queries to Staley, who later replied: “Okay. I’m going to play is [sic] easy. I’ve identified you as a shopper. I'll inform B tomorrow. Let me know if they are saying one thing else. However keep away from them. I’m effective.”

The article was revealed with the headline: “Andrew’s billionaire paedophile buddy secretly backed new Barclays boss for job”.

Staley mentioned he minimize contact with Epstein days later, following “sturdy recommendation” from Barclays. “I telephoned Mr Epstein and advised him that we couldn't ever once more have communication, which he accepted. The connection ended there. I've had no communication with him since then,” Staley advised the court docket.

There is no such thing as a proof of direct contact between the 2 males after October 2015, however the FCA alleged they stayed in contact through Staley’s daughter till at the very least February 2017.

Emails present that Epstein requested Staley’s daughter to ask the newly put in chief govt’s opinion on different bankers, to attempt to join Staley with royalty within the Center East, and to ask whether or not Staley was enthusiastic about a submit with the US Treasury. Staley mentioned he didn't recall any of these conversations, and he didn't realise on the time that his daughter and Epstein had been nonetheless corresponding.

The tribunal on Thursday raised considerations in its judgment about Staley’s proof, saying he “could possibly be inconsistent in his solutions when he felt that it will swimsuit his case”, including that he had “proven no regret for his conduct”.

Judges have sided with the FCA, upholding its Metropolis ban and scuppering efforts to revive his status.

And whereas the tribunal lowered his effective from £1.8m to £1.1m, this was to replicate pay he misplaced from Barclays on account of the FCA ruling. It's not clear how a lot Staley has paid in authorized prices making an attempt to problem the UK regulator.

Staley mentioned in an announcement: “I'm upset by the result and the time it took for this course of to play out – that was completely past my management. Because the tribunal accepted, I used to be by no means dishonest. It took years of arguing with the authority and till November 2024 to determine that truth, and it took extra time for the monetary penalty to be lowered by 40%.

“I've labored tirelessly for my prior employers for the whole lot of my profession. I'm happy with the assist I gave to many people throughout that profession and the technique I developed to assist Barclays when it confronted immense challenges. The tribunal recognised what they described as ‘my lengthy and distinguished profession’.”