(Adds background, share price performance)
By Rachel Armstrong and Carolyn Cohn
LONDON, Nov 1 (Reuters) - Barclays said on Monday
that chief executive Jes Staley is to stand down following
British regulators' investigations into his ties with convicted
sex offender Jeffrey Epstein.
C.S. Venkatakrishnan, head of global markets, will replace
him as CEO with immediate effect.
Barclays said it was made aware on Friday evening of the
preliminary conclusions from the Financial Conduct Authority and
the Prudential Regulatory Authority's investigation into
Staley's characterisation to Barclays of his relationship with
Epstein and the subsequent description of that relationship in
Barclays' response to the regulator.
"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.
"It should be noted that 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."
Barclays said last year that Britain's financial regulators
were probing links between Staley and Epstein, who killed
himself while awaiting trial on sex trafficking offences. Staley
has previously said his relationship with Epstein ended in late
2015, and that he regretted having any relationship with him.
The FCA and PRA said in a statement they could not comment
further on the Epstein investigation.
"The board is disappointed at this outcome. Mr Staley has
run the Barclays Group successfully since December 2015 with
real commitment and skill," the bank said in a statement.
UK regulators launched their investigations https://www.reuters.com/article/us-barclays-results-idUSKBN2070NF
into links between Staley and Epstein after JPMorgan
provided them with emails the two exchanged when Staley was the
head of JPMorgan’s private bank, the Financial Times reported
last year.
The bank's share price has fallen 9% since Staley became
CEO.
Barclays fought off a campaign launched by activist investor
Edward Bramson in 2018 to have Staley removed. Bramson sold his
stake earlier this year.
Britain's financial regulators and Barclays fined Staley a
combined 1.1 million pounds ($1.50 million) in 2018 after he
tried to identify a whistleblower who sent letters criticising a
Barclays employee.
(Reporting by Rachel Armstrong; editing by Louise Heavens,
Kirsten Donovan)