Barclays boss Jes Staley is being investigated by the UK's financial regulator over the details he provided about his professional relationship with convicted sex offender Jeffrey Epstein during his time at JP Morgan.
Mr Staley was introduced to Epstein while running JP Morgan’s private bank division – and reports about the relationship have arisen in the past six months.
In a statement to the stock market, Barclays said: “As has been widely reported, earlier in his career Mr Staley developed a professional relationship with Mr Epstein.
“In the summer of 2019, in light of the renewed media interest in the relationship, Mr Staley volunteered and gave to certain executives, and the chairman, an explanation of his relationship with Mr Epstein.”
Barclays added that the boss said he had had no contact with Epstein since joining his current employer in December 2015.
FULL YEAR RESULTS: Group CEO Jes Staley on Barclays’ 2019 performance. #BarclaysResults— Barclays Bank (@Barclays) February 13, 2020
The bank added: “The relationship between Mr Staley and Mr Epstein was the subject of an inquiry from the Financial Conduct Authority, to which the company responded.
“The FCA and the Prudential Regulation Authority subsequently commenced an investigation, which is ongoing, into Mr Staley’s characterisation to the company of his relationship with Mr Epstein and the subsequent description of that relationship in the company’s response to the FCA.”
The revelation comes as the bank said pre-tax profits for the year jumped 25% to £4.4 billion, with its preferred measure of “return on tangible equity” up 9%.
Barclays annual report was also published, showing that Mr Staley took home a pay packet of £5.93 million – up from £3.86 million a year earlier.