LONDON, March 3 (Reuters) - Former Barclays
boss Jes Staley will on Monday mount a high-profile appeal
against his proposed ban from Britain's finance industry, which
will once again highlight his relationship with disgraced
financier Jeffrey Epstein.
Staley - also a former executive at JPMorgan ( JPM ), where
Epstein was once a major private banking client - has been
battling to clear his name since 2021, when he left Barclays ( JJCTF )
under a cloud caused by his past association with Epstein.
Britain's Financial Conduct Authority (FCA) said in 2023
that it intended to ban Staley from senior roles over a letter
sent by Barclays ( JJCTF ) to the financial watchdog in 2019, two months
after Epstein died in jail awaiting trial for sex trafficking.
The FCA alleges Staley approved the letter which contained
two misleading statements about how close he was to Epstein and
that his last contact with the financier was "well before he
joined Barclays ( JJCTF ) in 2015".
Staley denies the allegations. In court filings, Staley says
the FCA's decision - which also includes a 1.8 million-pound
($2.3 million) fine - was made unfairly as it did not give him
or Barclays ( JJCTF ) an opportunity to explain how the key letter was
approved.
His three-week appeal will hear evidence from high-profile
figures from the world of finance, including Bank of England
Governor Andrew Bailey, who was FCA chief executive between 2016
and 2020, and Barclays Chair Nigel Higgins.
It will also feature references to some of Epstein's other
well-known associates, such as Britain's Prince Andrew and Peter
Mandleson, now British ambassador in Washington.
Staley will be cross-examined over the course of four days
from March 11 while JPMorgan ( JPM ), which in 2023 settled with Staley
in the U.S. Virgin Islands, is likely to be represented.
The bank's lawyers said at a hearing in January that it
wished to attend as some of Staley's evidence "relates to
JPMorgan ( JPM ) individuals and employees".
The FCA's case will rely on around 1,200 emails between
Staley and Epstein, in which Staley described their friendship
as "profound" and referred to Epstein as "family".
The watchdog is also using emails it received from Epstein's
estate, which it says show Staley remained in contact with
Epstein until at least 2017 through Staley's daughter.
But Staley's lawyers say in court filings that those
communications were all initiated by Epstein and had not led to
further contact between the men.
($1 = 0.7942 pounds)