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The investigation by the Monetary Conduct Authority (FCA) and the Financial institution of Englandโs Prudential Regulation Authority (PRA) was disclosed by Barclays in early 2020 and centered on how Staley had characterised the connection to his employer.
Barclays and Staley had been made conscious on Friday night by the FCA and the PRA of the preliminary conclusions of their investigation.
โIn view of these conclusions, and Mr Staleyโs intention to contest them, the board [of Barclays] and Mr Staley have agreed that heโll step down from his function as group chief govt and as a director of Barclays,โ Barclays stated in its assertion on Monday.
โIt needs to be famous that the investigation makes no findings that Mr Staley noticed, or was conscious of, any of Mr Epsteinโs alleged crimes, which was the central query underpinning Barclaysโ assist for Mr Staley following the arrest of Mr Epstein in the summertime of 2019,โ the financial institution added, saying it was not applicable for it to remark additional.
A spokesperson for the FCA and PRA stated the regulators โdonโt touch upon ongoing investigations or regulatory proceedingsโ past confirming the actions detailed within the assertion from Barclays.
Relationship started at JPMorgan
โHe was already a shopper. The connection was maintained throughout my time at JPMorgan, however as I left Morgan it tapered off fairly considerably,โ Staley advised reporters on a name in February 2020.
Requested then whether or not he regretted his relationship with Epstein, Staley stated: โClearly I believed I knew him nicely and I did not. And for positive with hindsight of what everyone knows now I deeply remorse having had any relationship with Jeffrey Epstein.โ
Staley had advised the Barclays board that he had no contact with Epstein since turning into Barclays CEO in December 2015.
โThough element is proscribed, it seems regulators imagine there was a definite lack of transparency over this relationship,โ stated Susannah Streeter, senior funding and markets analyst at UK dealer Hargreaves Lansdown. โIt is understood Mr Staley will contest the conclusions, and clearly the board wish to distance Barclays from what may very well be an extended drawn out course of.โ
The Wall Avenue veteran had run into bother with UK regulators beforehand. In 2018, the FCA fined him about $870,000 after it emerged that he had tried to establish a whistleblower on the financial institution. Staley had tried to search out out who had authored an nameless letter that raised issues a few senior Barclays worker.
He apologized for his conduct and admitted that he had โmade a mistake.โ Barclays clawed again about $680,000 of his 2016 pay over the incident.
Barclays shares drop
However his loss is a giant blow to one of many few European corporations nonetheless dedicated to competing with the most important American funding banks.
Barclays shares fell by as a lot as 3.7% in London and had been final buying and selling down 1.5%. Theyโve jumped 35% to date this yr, a part of a broader rally in financial institution shares fueled by the financial restoration.
โThe [Barclays] board is disenchanted at this end result,โ the financial institution stated in its assertion. โMr Staley has run the Barclays Group efficiently since December 2015 with actual dedication and talent. Supported by the senior workforce which he largely helped construct and on whom the Barclays Group might be relying for the longer term, Mr Staley clarified the Barclays Groupโs technique, reworked its operations and materially improved its outcomes. โ
With impact from November 1, 2021, C.S. Venkatakrishnan will take over as Barclays CEO, topic to regulatory approval. Venkat, as heโs identified on the financial institution, beforehand served as head of world markets at Barclays from October 2020 and as group chief threat officer from 2016 to 2020. Previous to becoming a member of Barclays in 2016, he labored at JPMorgan Chase from 1994.
Staley will obtain his annual mounted pay price ยฃ2.4 million ($3.3 million) in money and shares, plus a pension allowance of ยฃ120,000 ($164,000) and different advantages till October 31, 2022. He can even be eligible for the prices of relocating to america.
โNo choices have but been made in respect of any additional remuneration funds to be made to Mr Staley,โ Barclays added.
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