British financial regulators are investigating Barclays (BARC.L) chief executive Jes Staley over his relationship with Jeffrey Epstein, the disgraced former financier who died by suicide a year ago while under arrest on sex trafficking charges.
But it said the FCA and United Kingdom banking regulator the Prudential Regulation Authority were now investigating "Mr. Staley's characterization to the company of his relationship with Mr. Epstein and the subsequent description of that relationship in the company's response to the FCA".
The New York Times first reported on Staley's relationship with Epstein last July.
The focus of the investigation is whether that relationship was properly disclosed to the bank and regulators.
The probe is the second regulatory investigation into Staley's conduct in recent years, after the FCA and PRA fined him 642,000 pounds ($832,803) in 2018 for trying to identify a whistle-blower who sent letters criticizing a Barclays employee.
The FCA and another United Kingdom regulator, the Bank of England's Prudential Regulation Authority, confirmed in a statement that they are investigating the Barclays CEO.
"The relationship was maintained during my time at JP Morgan but as I left JP Morgan the relationship tapered off quite significantly", insisted Staley, who spent much of his career in the Big Apple.
"He was a client when I joined the private bank", Staley told journalists.
Epstein was in NY financial services, working at investment bank Bear Sterns before starting his own firm.
"Obviously I thought I knew him well and I didn't". "I didn't. For sure, with hindsight of what we all know now, I deeply regret having had any relationship with Jeffrey Epstein".
The Boston-born banker said he "deeply regrets" his friendship with the pedophile who he first met in 2000 when he took charge of JP Morgan's private banking division and Epstein was "already a client" in NY. Epstein's "little black book" was renowned.
Staley and the disgraced American financier developed a professional relationship when Staley held a senior position at JPMorgan.
The bank said the two men were acquainted when Staley ran the private banking division of JP Morgan, but that Staley had had no contact with Epstein after joining Barclays in December 2015.
Part of a board's responsibility is to put forward executives for elections by shareholders and in recommending Mr Staley for re-election ahead of the annual investor meeting in May directors must tackle any due diligence issues.