Key facts
- Senator Elizabeth Warren, joined by Representatives Ro Khanna and Raja Krishnamoorthi, has written to Barclays demanding answers about its investigation into former CEO Jes Staley's relationship with Jeffrey Epstein.
- The lawmakers questioned the bank's due diligence in hiring Staley and its handling of information regarding his ties to the convicted sex offender.
- Barclays stated that Staley misled the bank and that new information has emerged demonstrating the nature of his relationship with Epstein.
- Staley, who was previously banned from the UK financial sector, is set to be questioned by the House Oversight Committee.
US Senator Elizabeth Warren, along with Representatives Ro Khanna and Raja Krishnamoorthi, has sent a letter to Barclays demanding answers regarding the bank's investigation into its former CEO Jes Staley's relationship with the late sex offender Jeffrey Epstein. The lawmakers expressed concern over what they described as Barclays's "apparent failure to meaningfully investigate" the decades-long ties.
In the letter, sent to Barclays Chair Nigel Higgins, Warren stated it was "deeply unclear" how the bank failed to uncover the extent of Staley's connection to Epstein. The US representatives gave Barclays two weeks to respond to a series of questions about its handling of information concerning the relationship. They specifically questioned whether the bank reviewed deficiencies in its executive hiring process that allowed Staley, who had extensive professional and personal ties to Epstein, to be hired.
The concerns were raised following information from a UK court hearing where Staley unsuccessfully attempted to overturn a ban from the British banking industry. The letter highlighted that Higgins admitted he had not asked Staley about his last contact with Epstein before stating it occurred "well before" Staley joined Barclays, suggesting the board "simply took him at his word."
The lawmakers emphasized that Barclays's handling of the situation raises significant governance questions about the bank's ability to hold senior executives accountable. They also reminded the bank that its privilege to operate in the US, where it holds approximately $200 billion in assets, is contingent on the character and fitness of its management.
The letter was sent shortly before Staley was scheduled to be questioned by the House Oversight Committee. Staley, who first met Epstein in 2000 while at JP Morgan, was forced to step down as Barclays CEO in 2021 after regulators investigated his relationship with Epstein. He was subsequently banned from the UK financial sector for downplaying these ties, a claim Barclays had supported in a 2019 letter to the Financial Conduct Authority.
A spokesperson for Barclays stated that the UK regulator concluded Staley had misled the bank and that new information, not available at the time of Barclays's own investigation, demonstrates Staley misled many regarding his relationship with Epstein, particularly concerning activities predating his employment at Barclays.