A Nudge From JPMorgan Drove Probe of Staley’s Epstein Links

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(Bloomberg) -- JPMorgan Chase & Co. provided the cache of documents that led British regulators to begin investigating the links between Jeffrey Epstein and former Barclays Plc Chief Executive Officer Jes Staley, according to a London court filing.

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The US bank informed the Financial Conduct Authority in November 2019 that it had identified “various documents” that showed the relationship between Staley, a former senior JPMorgan executive, and the late pedophile financier.

The British regulator compelled JPMorgan to hand over the documents and opened a formal probe into Staley. That investigation ultimately led to his exit from Barclays and resulted in him being permanently banned from the UK financial services industry.

“This is what kicked everything off,” Judge Timothy Herrington said of the JPMorgan documents at a Monday court hearing in London, part of Staley’s efforts to overturn his lifetime ban.

A spokesman for JPMorgan and a representative for Staley declined to comment.

JPMorgan ended a legal claim against Staley last year as part of a wider settlement which saw the bank agree to pay out $290 million to a group of almost 200 victims of Epstein’s abuse and a further $75 million to the US Virgin Islands. The bank did not admit liability in either case.

The FCA case is likely to re-air much of the same evidence about Staley’s ties with Epstein that was raised during the JPMorgan litigation, as well as provide new details.

One such detail emerged in court Monday: Staley’s adult daughter, Alexa Staley, acted as a go-between for him and Epstein, despite her father’s claim that he cut ties with the sex offender after becoming Barclays CEO. Bloomberg News first reported in February that the men maintained contact through an intermediary, citing documents that were part of the US litigation against JPMorgan, but that person was not identified at the time.

A Monday court filing also said Bank of England Governor Andrew Bailey and Barclays Chairman Nigel Higgins are expected to testify in the FCA case, which is expected to go to trial in March.

Staley was a central figure in the previous cases involving JPMorgan, which made numerous references to his close links to Epstein as he climbed the corporate ladder at the bank over three decades before leaving in 2013. Documents released as part of the lawsuits showed Staley thanking the late sex offender for his “friendship” and discussing visiting several of Epstein’s luxury properties, including his private Caribbean island.