US senator demands urgent answers from Barclays over Staley's Epstein ties
Sen. Elizabeth Warren accuses Barclays of failing to investigate former CEO Jes Staley's decades-long relationship with convicted sex offender Jeffrey Epstein. She gives the bank two weeks to answer questions.
Senator Elizabeth Warren, the leading Democrat on the US Senate banking committee, has demanded urgent answers from Barclays over what she described as the bank's apparent failure to meaningfully investigate ties between its former chief executive, Jes Staley, and the late sex offender Jeffrey Epstein. In a letter sent to Barclays chairman Nigel Higgins, Warren, along with Congress members Ro Khanna and Raja Krishnamoorthi, gave the bank two weeks to respond to a series of questions about how it handled information on Staley's relationship with Epstein.
The letter's key allegations
The lawmakers expressed deep concern over information that emerged from a UK court hearing last year, in which Staley unsuccessfully challenged a regulatory decision to ban him from the British banking industry. The letter highlighted Higgins' admission that he had not asked Staley about his last contact with Epstein before telling the Financial Conduct Authority that the last contact had been 'well before' Staley joined Barclays in 2015. 'It appears that neither you nor any other member of the board conducted any deeper due diligence to verify Staley's claims and simply took him at his word,' the letter stated.
Questions over Barclays' governance
The US lawmakers questioned how Barclays' hiring process allowed the board to appoint a CEO who had extensive professional and personal ties to a convicted sex offender. They asked whether the bank had reviewed any deficiencies in its executive hiring process. 'Barclays's apparent failure to meaningfully investigate or address Staley's relationship with Epstein raises significant governance questions regarding the bank's ability to hold senior executives accountable for wrongdoing,' the letter said.
Staley's history with Epstein
Staley first met Epstein in 2000 while heading JP Morgan's private bank, where Epstein was a client. He became Barclays CEO in 2015 but was forced to step down in 2021 after UK regulators launched an investigation into his ties with Epstein. Staley was later banned from working in the UK financial sector for downplaying the nature of that relationship. Barclays had previously vouched for Staley's claims in its own letter to the Financial Conduct Authority.
US operations under scrutiny
The letter warned that the privilege of holding US banking licences and operating in the country, where Barclays holds about $200bn in assets, depends on the ongoing character and fitness of management. The signatories emphasised that the bank must conduct its operations in a safe and sound manner. The letter was sent just hours before Staley was due to testify behind closed doors before the House Oversight Committee, on which Khanna and Krishnamoorthi sit.
This development adds to the mounting scrutiny over Epstein's network and the institutions that enabled him. It remains to be seen how Barclays will respond to the senators' demands and whether further investigations will follow.