Barclays CEO quits after Epstein probe

• C.S. Venkatakrishnan will take over as chief executive of the bank

• Shares of Barclays fell 2% following the announcement

Barclays Chief Executive Jes Staley is leaving the bank following an investigation into his ties with the convicted sex offender Jeffrey Epstein.

C.S. Venkatakrishnan, currently head of global markets, will take over as chief executive of the bank.

The announcement comes after the bank was informed on Friday of the preliminary conclusions of a probe by Britain's Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA).

The probe pointed out Staley’s relationship with Epstein.

"In view of those conclusions, and Mr Staley's intention to contest them, the Board and Mr Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays," the bank said in a statement.

"It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein's alleged crimes, which was the central question underpinning Barclays' support for Mr Staley following the arrest of Mr Epstein in the summer of 2019," the bank said.

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Shares of Barclays fell 2% following the announcement.

Staley’s history with Epstein

Epstein was a major private banking client at JPMorgan, where Staley also used to work.

In July 2019, Epstein was arrested on child sex trafficking charges but he hanged himself a month ago in the jail.

"I thought I knew him well, and I didn't. I'm sure with hindsight of what we all know now, I deeply regret having had any relationship with Jeffrey Epstein," Staley had said earlier.

Many prominent people who had ties with Epstein are facing trouble currently.

Apollo Global Management co-founder, Leon Black, had to step down earlier this year after a review revealed that he paid Epstein $158 million for tax and estate planning.

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Similarly, Britain’s Prince Andrew has quit royal duties due to his relations with Epstein while Bill Gates, the co-founder of Microsoft, said it was a “huge mistake” to spend time with Epstein.

The new CEO Venkatakrishnan, who is known as Venkat, told staff on Monday that the strategy used by Staley was “the right one.”

Picture Credits: Getty Images