Jes Staley is stepping down as chief executive of Barclays following a regulatory investigation into the way he described his relationship with disgraced financier and sex offender Jeffrey Epstein.
In a statement yesterday, the bank said it was made aware of the results of the probe by the Financial Conduct Authority and Prudential Regulation Authority on Friday.
“In view of those conclusions, and Mr Staley’s intention to contest them, the board and Mr Staley have agreed that he will step down from his role as group chief executive and as a director of Barclays.”
It added: “It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein’s alleged crimes, which was the central question underpinning Barclays’ support for Mr Staley following the arrest of Mr Epstein in the summer of 2019.”
Epstein was until 2013 a key client of JPMorgan’s private bank, which Staley used to run. Staley developed a relationship with Epstein and visited the sex offender’s island on his yacht in 2015.
Emails between the two men — handed over to US regulators by JPMorgan and then shared with UK regulators — suggested their relationship was friendlier than claimed by Staley, who had categorised the association as professional.
Epstein took his own life in 2019 while awaiting trial on charges that he sex-trafficked underage girls.
Staley will be replaced by CS Venkatakrishnan, the head of global markets at Barclays and a former chief risk officer.
Opinion: Why Staley’s departure from Barclays still leaves questions for the bank, writes Helen Thomas.
Thanks for reading FirstFT Asia. Here’s the rest of today’s news — Emily
Five more stories in the news
1. Japanese stocks rise on Kishida election victory Markets in Japan crept up, after a weekend election in the country ensured the ruling Liberal Democratic party retained an outright majority, paving the way for further fiscal stimulus measures. The Nikkei 225 saw a 2.61 per cent gain, closing at 29,647.08 yesterday. (FT, CNBC)
Go deeper: Fumio Kishida defied the naysayers to quash Japan’s opposition.
2. Biden’s climate pledges undermined by holdout senator Joe Biden’s hopes of gaining congressional approval for his sweeping domestic agenda, including climate proposals he is touting in Glasgow, were dealt another setback after Democratic senator Joe Manchin said he had lingering “concerns” about the $1.75tn spending package.
3. Indonesia gives Novavax’s Covid vaccine first approval Novavax and its partner the Serum Institute of India have received authorisation for their Covid-19 vaccine in Indonesia, marking the first such global approval for a jab that could boost immunisation efforts in the developing world.
4. HNA’s $170bn restructuring plan approved A Chinese court has approved the $170bn restructuring of HNA Group, formerly China’s most aggressive offshore dealmaker. The victory for the conglomerate’s state controllers could prove instructive for how Beijing deals with the heavily indebted property group Evergrande.
5. Legislation on stablecoins needed ‘urgently’, say US regulators The President’s Working Group on Financial Markets, comprising the secretary of the Treasury and the heads of all the key US financial regulators, said stablecoin issuers should become “insured depository institutions”, on a par with banks that offer saving accounts for customers.
COP26 digest
With world leaders gathering in the Scottish city of Glasgow for the UN climate conference we will be keeping you up to date with developments in a daily news digest. Moral Money, our sustainable finance newsletter, will be publishing every weekday throughout the summit. Sign up here to receive it.
Prime minister Narendra Modi vowed to cut India’s emissions to net zero by 2070, a major turnround for the world’s third-largest polluter.
President Xi Jinping did not make progress on China’s climate policies. He used his statement to call on rich nations to do more to help developing countries.
A group of the world’s largest asset managers pledged to cut carbon emissions by between 30 and 65 per cent in the next eight years.
Boris Johnson compared the impact of climate change to a James Bond “doomsday device”, but his fresh pledge of an extra £1bn towards international climate finance by 2025 comes with a catch.
The day ahead
Australia interest rate decision Traders last week expected that the Reserve Bank of Australia would keep its benchmark rate on hold at .10 per cent when they announce their decision today. (Yahoo Finance)
Earnings Air Canada, BP, Pfizer and Standard Chartered report third-quarter earnings today.
US election day Voters will go to the polls across the US today. Notable races include the neck and neck Virginia governor’s race and the New York mayoral race, where Democrat Eric Adams is on track to be the city’s next leader.
What else we’re reading
China’s most sought-after staff: data officers The introduction of sweeping data protection laws by Beijing has transformed what was unglamorous compliance work into a critical role for companies of all sizes. Salaries are soaring as companies scramble to hire up.
Apple has too much power over its rivals Users have welcomed the Apple’s privacy changes, but the company should not have so much sway over competitors, writes Brooke Masters. It is disturbing that a business decision by one company can crush the revenues of so many others.
Scientists warn of ‘near-unlivable’ conditions Up to 3bn of a projected world population of 9bn could be exposed to temperatures on par with the hottest parts of the Sahara by 2070, according to scientists from China, the US and Europe.
Fed’s trading clampdown turns spotlight on other central banks By tightening the rules on personal investments by its top officials, the US Federal Reserve has highlighted how staff at several other major central banks hold financial assets, triggering questions about the possibility of conflicts of interest.
Will ailing Turkish economy bring down Erdogan? Opposition parties are becoming bullish about defeating Recep Tayyip Erdogan, a leader who appears unwilling to change his idiosyncratic approach to running Turkey’s $765bn economy.
Your feedback
Thanks to readers who sent their thoughts on global efforts to address climate change:
“It stands to reason that the (rich) world will have to pay to reduce CO2 emissions more rapidly in China and India — and elsewhere in the developing world. This is also logical from a pure economics point of view. If you look at the cost abatement curve globally for CO2, it makes no sense to subsidise electric driving in my country, the Netherlands, while the impact per dollar could be increased tenfold or more by replacing coal-fired plants in China and India . . . So yes: massive wealth transfer from rich to poorer countries is on the cards and rationally the right thing to do — even if politically impalatable. ” — Douwe Riegstra, The Hague, the Netherlands
“Clearly there is a case for businesses and governments to help fund green energy transformation around the world. But all large countries should be involved, with no opt-outs for China or India. On the other hand, if the west bought less from Chinese factories, there would by definition be less coal and pollution generated in China. The UK and the EU can be leaders in such efforts because if America pushes something like that, the important messaging will be hidden in broader superpower rivalry.” — Spencer Dodington, London, England
Source: Economy - ft.com
