LONDON Barclays CEO Jes STALEY will resign following an investigation into Jeffrey Epstein's relationship, the bank announced Monday.
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Barclays and Staley were "made aware of Friday evening the preliminary conclusions" from a probe by the U.K's Financial Conduct Authority and Prudential Regulation Authority, Barclays stated.
The investigation also included Mr Staley's description to Barclays about his relationship to Mr Jeffrey Epstein, and Barclays' subsequent description of that relationship.
The bank stated that "In light of these conclusions and Mr Staley’s intent to contest them", the Board and Mr Staley had agreed to Mr Staley's resignation from his position as Group Chief Executive Officer and director of Barclays.
Barclays Bank shares were 1.2% lower Monday morning following the announcement
According to the bank, the investigation did not reveal that Mr Staley was aware or saw any of Mr Epstein’s alleged crimes. This was the key question behind Barclays' support of Mr Staley after Mr Epstein was arrested in the summer 2019.
Epstein, a billionaire financier, was charged with child sex trafficking in July 2019. He then hanged himself in Manhattan federal prison a month later.
The U.K.'s financial watchdog as well as the Bank of England's regulatory authority have begun an investigation into Staley's connections to the deceased financier. Barclays stated that the "regulatory process" is still in its fullness and that it was inappropriate for Barclays's to comment on the preliminary findings of the investigation.
In October 2015, Barclays' CEO was named as Staley. Reuters reported that he previously stated that he had ended his relationship with Epstein in late 2015.
