Barclays said today chief executive Jes Staley must step down following inquiries by UK regulators into his relationship with Jeffrey Epstein.
The bank said it was briefed on Friday of the preliminary findings of the Financial Conduct Authority and Prudential Regulatory Authority investigation into Barclays’ characterization of Staley of his relationship with Epstein.
He said he was also made aware of the later description of this relationship in Barclays’ response to the regulator.
“In view of these findings and Mr. Staley’s intention to challenge them, the Board of Directors and Mr. Staley have agreed that he will step down as Group Managing Director and a Director of Barclays,” the bank said.
Barclays said last year that UK financial regulators were investigating links between Staley and Epstein, who committed suicide while awaiting trial on sex trafficking offenses.
Staley has previously said his relationship with Epstein ended in late 2015 and that he regrets having had a relationship with him.
The FCA and PRA said in a statement they could not comment further on the Epstein investigation.
Barclays said CS Venkatakrishnan will take over as chief executive.
“The board of directors is disappointed with this result. Mr. Staley has successfully led the Barclays group since December 2015 with real commitment and competence,” the bank said in a statement.