Jes Staley, CEO of Barclays
Justin Solomon | CNBC
JPMorgan Chase sued its former funding banking chief Jes Staley over his ties to disgraced former financier Jeffrey Epstein, alleging that Staley is responsible for any authorized fallout from a pair of lawsuits in opposition to the financial institution.
The corporate on Wednesday filed a swimsuit in opposition to Staley that sought to claw again his final eight years of pay at JPMorgan and make him chargeable for potential payouts in lawsuits confronted by the New York-based financial institution. The compensation alone quantities to more than $80 million.
The authorized maneuver is the most recent twist in instances which have embroiled the most important U.S. financial institution by belongings. Late final 12 months, the U.S. Virgin Islands and a gaggle of alleged Epstein victims sued the financial institution, accusing it of facilitating the intercourse offender’s crimes. JPMorgan stored Epstein as a personal wealth shopper till 2013, partially as a result of Staley vouched for him, regardless of inside issues after Epstein’s 2008 conviction on intercourse crimes.
As stress on the financial institution elevated, JPMorgan went from defending its former government in latest weeks to shifting the blame for any Epstein fallout to him.
One of many inside emails launched within the latest lawsuits mentioned a review of the Epstein account anticipated to be achieved by JPMorgan CEO Jamie Dimon; the financial institution stated it hadn’t seen proof the evaluation occurred. Plaintiffs have sought to query Dimon on the case, an effort the financial institution is resisting.
“To the extent that Staley knew of, participated in, or witnessed sexual abuse related to Epstein and didn’t report it to, or actively hid it from JPMorgan,” it’s Staley, and never the financial institution, who’s chargeable for accidents Epstein brought on, JPMorgan stated in its Wednesday submitting.
‘Highly effective exec’
JPMorgan additionally recognized Staley because the “highly effective monetary government” accused of sexually assaulting one in all Epstein’s alleged victims in one of many fits it faces.
Staley’s lawyer, Kathleen Harris of Arnold & Porter, declined to remark. Staley, who left JPMorgan in 2013 and later turned CEO of Barclays earlier than stepping down from the London-based financial institution in 2021, has denied information of Epstein’s crimes.
Nonetheless, JPMorgan stated within the submitting that it did not admit that the 2 plaintiffs’ allegations had been correct, and in a press release known as the lawsuits “misplaced and with out advantage.”
“The plaintiffs have made troubling allegations regarding the conduct of our former worker Jes Staley, and if true he ought to be held chargeable for his actions,” a JPMorgan spokeswoman stated.
“We anticipate all of our staff at each stage of the agency act with honesty and integrity,” she added. “If these allegations in opposition to Staley are true, he violated this obligation by placing his personal private pursuits forward of the corporate’s.”
