- Barclays says its CEO is being probed by UK regulators over his relationship to Jeffrey Epstein.
- The board is backing Staley in the meantime, stating the CEO has actually been “adequately transparent with the company.”
- ” Like Teflon: that’s one way to describe CEO Jes Staley,” stated Neil Wilson at Markets.com. “Others may be less kind.”
- Check Out Organisation Expert for more stories.
Barclays provided a bombshell on Thursday, stating that UK financial authorities are investigating its CEO Jes Staley over his relationship to sex transgressor Jeffrey Epstein.
Britain’s Financial Conduct Authority, in addition to the regulative guard dog, Prudential Policy Authority are checking out ” Mr. Staley’s characterisation to the business of his relationship with Mr. Epstein, and the subsequent description of that relationship, in the company’s action to the FCA,” Barclays said in a declaration on Thursday while reporting 4th quarter earnings.
Because he has actually been “sufficiently transparent with the business as concerns the nature and level of his relationship with Mr. Epstein,” the bank stated, “Mr. Staley maintains the complete confidence of the board.”
” Like Teflon: that’s one way to describe CEO Jes Staley,” said Neil Wilson at Markets.com. “Others may be less kind.”
Staley has had wobbles before. In 2018, Staley was slapped with a fine of more than ₤600,000($778,000) by the same UK regulators following his attempts to unmask a whistleblower at the bank in 2016.
” Coming after the whistleblowing fine, it’s appearing like the cat might be running out of lives,” Wilson said. “I wonder if he can survive this.”
While “Staley has actually steered the ship through some choppy waters for European banking,” Wilson stated, incomes missed consensus targets. The bank, blaming macro uncertainty and low rate of interest, backed down from its objective of a more than 10%return on concrete equity in2020
That “takes the shine off things,” Wilson stated, and pressed the shares 3%lower in London trading. “Cost-cutting needs to go beyond trimming benefits.”
The Barclays statement read: “Earlier in his profession Mr. Staley developed a professional relationship with Mr. Epstein,” as has actually been reported by numerous media outlets.
” In the summertime of 2019, because of the restored media interest in the relationship, Mr. Staley volunteered and gave to certain executives, and the Chairman, a description of his relationship with Mr. Epstein. Mr. Staley also verified to the Board that he has had no contact whatsoever with Mr. Epstein at any time given that taking up his role as Barclays Group CEO in December 2015.
The relationship in between Mr. Staley and Mr. Epstein was the topic of a query from the Financial Conduct Authority (” FCA”), to which the Company responded..
The Board will continue to cooperate completely with the regulative investigation, and will supply a further upgrade as and when it is appropriate to do so.”