Reps. Raja Krishnamoorthi and Ro Khanna are demanding answers from Barclays regarding former CEO Jes Staley’s connections to Jeffrey Epstein amid growing scrutiny over corporate governance practices.
Representatives Raja Krishnamoorthi and Ro Khanna have joined Senator Elizabeth Warren in seeking clarity from Barclays concerning the bank’s handling of former CEO Jes Staley’s relationship with convicted sex offender Jeffrey Epstein.
The lawmakers have raised questions about whether Barclays conducted sufficient due diligence prior to Staley’s appointment as CEO and whether the bank adequately investigated his ties to Epstein after concerns were initially raised.
In a letter addressed to Barclays Chairman Nigel Higgins, Warren, Krishnamoorthi, and Khanna expressed their concerns regarding what they perceive as the bank’s failure to thoroughly investigate Staley’s relationship with Epstein and the circumstances surrounding his appointment to lead the financial institution. They have requested that Barclays respond to a series of inquiries about its internal investigations and corporate governance practices.
This scrutiny follows revelations about the depth of Staley’s relationship with Epstein and raises questions about whether the former Barclays chief was fully transparent with the bank and financial regulators.
Staley became Barclays’ chief executive in 2015 but resigned in 2021 amid regulatory scrutiny concerning his connections to Epstein. The UK’s Financial Conduct Authority later determined that Staley had misled regulators regarding the nature of his relationship with Epstein, resulting in a ban from working in the UK financial sector.
Barclays has asserted that it was misled by Staley and that information that surfaced later was not available to the bank during its initial review of his relationship with Epstein. However, the lawmakers’ letter challenges how the bank’s earlier review failed to uncover the extent of a relationship that reportedly lasted for years.
The lawmakers’ intervention comes as Staley faces renewed scrutiny in the United States. He recently participated in a closed-door session before a U.S. House committee investigating matters related to Epstein. According to reports, Staley denied being friends with Epstein, maintaining that their relationship was strictly professional. However, lawmakers expressed skepticism, citing over 1,000 emails exchanged between the two.
The congressional investigation has focused partly on communications in which Staley and Epstein appeared to describe their relationship in unusually personal terms. Staley has disputed the interpretation of these communications and has denied any knowledge of Epstein’s criminal activities.
Krishnamoorthi and Khanna are also examining broader issues of corporate accountability, including how major financial institutions conduct background checks and risk assessments when hiring senior executives.
The letter to Barclays stipulates a limited timeframe for the bank to respond to the lawmakers’ inquiries. This inquiry could intensify pressure on the bank to clarify its decision-making processes and internal oversight regarding Staley’s appointment and subsequent departure.
For Krishnamoorthi and Khanna, this issue aligns with a broader congressional effort to promote transparency and accountability in the ongoing Epstein case. Both lawmakers have previously advocated for greater disclosure of records related to Epstein and his network. Krishnamoorthi has called for accountability from individuals with knowledge of Epstein’s activities, while Khanna has been involved in initiatives to make Epstein-related records public.
The latest inquiry places Barclays’ corporate governance practices under renewed scrutiny as lawmakers continue to investigate how Epstein maintained relationships with influential figures across finance and other sectors.
The investigation and congressional inquiries are ongoing, and the full details of the lawmakers’ questions, along with Barclays’ response, could shed further light on how the bank managed Staley’s relationship with Epstein.
According to Reuters, the implications of this inquiry may have far-reaching effects on corporate governance standards within the financial industry.