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(Alliance News) - Barclays PLC on Monday announced Jes Staley has stepped down as chief executive following a probe by UK regulators into his relationship with disgraced late financier Jeffery Epstein.
Barclays shares were 1.2% lower at 199.88 pence each in London on Monday morning.
The London-based bank said Staley is stepping down as CEO in order to contest findings into his description of his relationship with Epstein.
In light of the UK Financial Conduct Authority and Prudential Regulation Authority's conclusions, and Staley's intention to contest them, he has agreed to part ways with the lender, Barclays said. The bank said it and Staley were made aware of the preliminary conclusions from the FCA and PRA on Friday evening.
Barclays said: "The board is disappointed at this outcome. Mr Staley has run the Barclays group successfully since December 2015 with real commitment and skill. Supported by the senior team which he largely helped build and on whom the Barclays group will be relying for the future, Mr Staley clarified the Barclays group's strategy, transformed its operations and materially improved its results. The regulatory process still has to run its full course and it is not appropriate for Barclays to comment further on the preliminary conclusions."
Barclays noted that the probe has made "no findings that Mr Staley saw, or was aware of, any of Mr Epstein's alleged crimes". The lender said that was the basis of its support for Staley following Epstein's arrest in the summer of 2019.
Back in February of last year, Barclays said Staley was "sufficiently transparent" about the nature of his relationship with Epstein, who killed himself in a New York jail in August 2019 while awaiting trial on sex-trafficking charges.
Barclays has appointed CS Venkatakrishnan, known as Venkat, as its new CEO, effective Monday.
Barclays said it has had succession planning in hand "for some time" and identified Venkatakrishnan, head of Global Markets and co-president of Barclays Bank PLC, as its preferred candidate over a year ago.
Venkatakrishnan joined Barclays in 2016 and held senior roles in JP Morgan Chase & Co's asset management arm.
By Eric Cunha; ericcunha@alliancenews.com
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