Published by Global Banking & Finance Review®
Posted on March 7, 2025
3 min readLast updated: January 25, 2026
Andrew Bailey testifies in Jes Staley's appeal against an FCA ban, focusing on emails with Jeffrey Epstein that raise questions.
By Sam Tobin
LONDON (Reuters) - Bank of England Governor Andrew Bailey said emails between ex-Barclays boss Jes Staley and Jeffrey Epstein "raised awkward questions" in a witness statement made public on Friday, as he gave evidence at Staley's appeal against an industry ban.
Bailey arrived at the Rolls Building in London to answer questions on his role in the decision by the Financial Conduct Authority, while he was its chief executive, to open an investigation over Staley's past association with Epstein, who was arrested in 2019 following allegations he was involved in sex trafficking young women and teenage girls for more than two decades.
Staley is challenging the FCA's decision to ban him from working in the UK finance industry indefinitely and fine him 1.8 million pounds ($2.3 million) at London's Upper Tribunal.
He sat in court flanked by his lawyers as Bailey recounted his interactions with Barclays Chair , shortly after the FCA approached the bank following Epstein's arrest in 2019.
Barclays sent a letter from Higgins in response, which said Staley "did not have a close relationship" with Epstein and their last contact was "well before he joined Barclays in 2015".
The FCA alleges those statements were inaccurate and that Staley recklessly approved the letter, though Staley says both statements are correct.
Bailey said in his witness statement that, when he received the letter, he thought Barclays had looked into the issue and the FCA did not need to take any further action.
He added, however, that JPMorgan – where Staley was previously head of the private bank and had Epstein as a major client – then contacted the FCA saying they had "found documents suggesting some potential impropriety".
'AWKWARD QUESTIONS'
The FCA's case centres on a cache of over 1,000 emails between Staley and Epstein, including those from JPMorgan in which Staley described their friendship as "profound".
The emails also feature previously reported references to some of Epstein's other well-known associates, such as Britain's Prince Andrew, Peter Mandelson, now British ambassador in Washington and Microsoft founder Bill Gates.
Bailey said in his statement that emails between Staley and Epstein suggested they had a close relationship and that Staley "may have misled Barclays and thereby misled the (FCA)".
There was subsequently a meeting attended by Bailey, Higgins, then Bank of England Governor Mark Carney and Sam Woods from the BoE's Prudential Regulation Authority about the letter.
"We ... were concerned about the process Barclays had been through to get this answer," he said in his statement. "This raised awkward questions for Barclays and in particular for Mr Higgins, since he had put his name to the letter."
Higgins is due to give evidence on Monday. Staley, 68, will from Tuesday be cross-examined over his relationship with Epstein, whose 2019 arrest and subsequent death in custody brought scrutiny on his many high-profile associates.
Epstein's crimes have also prompted lawsuits against JPMorgan and public figures like Britain's Prince Andrew as well as against Staley himself, leading to a steady stream of communications between Staley and Epstein being made public.
(Reporting by Sam Tobin; additional reporting by Sam Tabahriti, Editing by Louise Heavens)
Andrew Bailey stated that the emails raised 'awkward questions' and suggested that Staley may have misled Barclays and the FCA.
Jes Staley is appealing the FCA's decision to ban him from the UK finance industry indefinitely and to impose a fine of 1.8 million pounds.
The emails indicated that Staley described his friendship with Epstein as 'profound', suggesting a close relationship.
Barclays claimed that Staley did not have a close relationship with Epstein and that their last contact was before Staley joined Barclays in 2015.
Higgins is expected to give evidence on Monday, followed by Staley being cross-examined about his relationship with Epstein starting Tuesday.
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