LONDON — Barclays CEO Jes Staley will stand down following an investigation into his relationship with Jeffrey Epstein, the bank said in a statement Monday.
C.S. Venkatakrishnan (known as Venkat) will take over as chief executive with immediate effect, subject to regulatory approval.
Barclays and Staley “were made aware on Friday evening of the preliminary conclusions” of a probe by the U.K.’s Financial Conduct Authority and the Prudential Regulation Authority, Barclays said.
It added that the investigation was into “Mr. Staley’s characterization to Barclays of his relationship with the late Mr. Jeffrey Epstein and the subsequent description of that relationship in Barclays’ response to the FCA.”
Barclays CEO Jes Staley to step down following Jeffrey Epstein probe
“In view of those conclusions, and Mr. Staley’s intention to contest them, the Board and Mr Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays,” the bank said.
Shares of Barclays were trading 1.2% lower Monday morning after the announcement.
The bank said the investigation “makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein’s alleged crimes, which was the central question underpinning Barclays’ support for Mr Staley following the arrest of Mr Epstein in the summer of 2019.”
Wealthy financier Epstein was arrested in July 2019 on child sex trafficking charges but hanged himself a month later in a Manhattan federal jail.