Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
Jess Staley failed to overturn a decision by the Financial Conduct Authority that he “recklessly” misinterpreted the regulator about his relationship with convicted sex offender Jeffrey Epstein in a major setback to Barclays’ former CEO.
In a ruling taken over by the Superior Court on Thursday, Judge Timothy Herrington said Staley’s actions represented a “serious failure in judgment” and “acted in good faith” by approving a misleading letter from the bank to the regulator.
However, the judge ordered a 40% reduction in the £1.8 million fine imposed on Staley by regulators to reflect the fact that Barclays does not allow him to receive the deferred shares he has been entitled.
The former Barclays boss challenged the ban imposed on him by the FCA in 2023, and a famous trial took place in March.
Herrington said he approved Barclays’ letter to the regulator, which he knew Staley contained inaccuracies regarding the nature of his relationship with Epstein, and that “it could bring confidence that the financial system is being negatively affected.”
The verdict also found that Staley “does not show repentance for his actions.”
At the heart of the conflict were two statements made by Barclays in October 2019 in a letter sent to regulators by the bank.
The FCA began investigating Staley two months later. His former employer, JP Morgan Chase, said the regulator had a flock of documents relating to his relationship with Epstein.
“We look at Staley’s performance as Barclays’ CEO, but in our view, these do not reduce the severity of the fraud,” the ruling states. “The loss of his long-standing career is an inevitable consequence of that act.”
Requests to Staley’s attorneys were not immediately returned. Barclays declined to comment.
Therese Chambers, co-executive director of enforcement and market surveillance at the FCA, said Staley had acquired a “calculated risk” and “hoping the truth would be revealed and he would escape it.” She added:
