- US lawmakers questioned former Barclays chief Jes Staley over his long-standing ties to Jeffrey Epstein.
- House Oversight Committee chair James Comer said Staley appeared to have defended keeping Epstein as a JPMorgan client.
- The inquiry follows years of regulatory action, lawsuits and settlements linked to Epstein's banking relationships.
Former Barclays chief Jes Staley is facing fresh questions over his relationship with Jeffrey Epstein after US lawmakers claimed he encouraged JPMorgan Chase to retain the convicted sex offender as a client despite internal concerns.
Speaking after Staley's closed-door interview with the House Oversight Committee, committee chair James Comer said evidence appeared to show there were "red flags" within JPMorgan about Epstein, but that Staley defended the relationship and urged the bank to continue banking him, as quoted in a news report.
Staley spent more than three decades at JPMorgan, where he served as Epstein's private banker and developed a close personal relationship with him before becoming chief executive of Barclays in 2015. A transcript of his testimony is expected to be released later.
A friendship that ended a banking career
Staley's links to Epstein have been under scrutiny for several years. British regulators previously reviewed more than 1,000 emails exchanged between the two men, including messages in which Staley reportedly described their friendship as "profound" and referred to Epstein as "family", according to regulatory findings.
The investigation concluded that Staley had misled regulators about the nature of his relationship with Epstein. He resigned as Barclays chief executive in 2021 after the Financial Conduct Authority launched its investigation and later lost his appeal against a ban preventing him from working in the UK's financial services industry.
Barclays has said regulators concluded the bank had also been misled by Staley and that its own internal review relied on the information available at the time.
Court proceedings linked to Staley's appeal also revealed further details about his relationship with Epstein. During the hearing, Staley admitted having a consensual sexual relationship with a member of Epstein's staff in New York. He has consistently denied any criminal wrongdoing and has never been charged with an offence connected to Epstein.
Staley has previously expressed regret over the relationship, saying in 2020 that he believed he knew Epstein well but later realised he did not, adding that he deeply regretted having any association with him, as quoted in a news report.
Pressure grows over JPMorgan's handling of Epstein
The latest congressional inquiry comes as JPMorgan continues to face questions over its historic relationship with Epstein, who remained a client even after pleading guilty in Florida in 2008 to offences involving the solicitation of prostitution, including from a minor.
In 2023, JPMorgan agreed to pay £214 million (about $290 million) to settle claims brought by Epstein's victims and £55 million (about $75 million) to resolve a separate lawsuit filed by the US Virgin Islands. The bank admitted no wrongdoing. It later reached a confidential settlement with Staley after seeking to hold him financially responsible for legal claims linked to Epstein.
Recent documents released by the US Department of Justice have also renewed attention on Staley's ties to Epstein, including allegations that prosecutors reviewed claims of rape and serious bodily harm made against him by a woman. There is no indication prosecutors pursued those allegations, and Staley has denied any wrongdoing.
With lawmakers continuing to examine who knew what about Epstein's financial relationships, Staley's testimony is expected to add another chapter to a case that continues to raise difficult questions for some of the world's biggest financial institutions.
