Staley sent Epstein ‘snow white’ email, say insiders

Former Barclays chief used mystery term in exchange with late paedophile financier, it is claimed

THE former chief executive of Barclays used the mystery phrase “snow white” in correspondence with Jeffrey Epstein, claim insiders familiar with a trove of 1,200 emails between the two men.

Jes Staley used the unexplained term in a short, two-message exchange referencing a conversation he had previously had with the paedophile financier, sources told the Financial Times.

The details are contained in a cache of messages which are also said to show the pair arranging to meet up for drinks in a sign of their close relationship.

Mr Staley resigned from his job last week after the Barclays board saw the draft results of an inquiry examining the nature of his relationship with Epstein, a key client when the banking executive worked at JP Morgan.

He is preparing to contest the findings, which have not been made public.

The emails were sent between 2008 and 2012. Mr Staley said his contact with Epstein began to taper off when he left JP Morgan in 2013.

Mr Staley has always denied any knowledge of the convicted sex offender’s alleged crimes and has said his relationship with Epstein, who died in his prison cell in August 2019, was purely professional. Barclays said that regulators have made no findings that Mr Staley saw, or was aware of, any of Epstein’s alleged crimes.

The Financial Conduct Authority and the Prudential Regulation Authority began investigating whether the bank chief properly explained his relationship with Epstein in 2019, after receiving emails which suggested the pairing was friendlier than claimed.

They have yet to draw conclusions about the “snow white” reference, an insider told the Financial Times. Barclays is said to have first been made aware of the correspondence when its chairman Nigel Higgins was summoned to a meeting with Mark Carney, then governor of the Bank of England. Mr Staley later offered to resign but was instead persuaded to stay and the bank decided to stand by him, it is claimed.

The lender conducted a review with external lawyers. Last year, it said that Mr Staley had been sufficiently transparent regarding his relationship with Epstein and had the full confidence of the board. That could now anger Barclays’ investors, who are growing increasingly agitated despite efforts by Mr Higgins to soothe their concerns. One top 10 shareholder said the board “does not come out of this looking strong and in control of events”.

They added: “At the moment I can’t tell whether the board’s decision was reasonable on the basis of the evidence they had at the time or whether whatever has come to light since should have been identified by them too.”

Major investors pledged their support for Mr Staley last year in the wake of efforts by the activist Ed Bramson to trigger a revolt due to his ties to Epstein. The former Barclays chairman John Mcfarlane also leapt to his former colleague’s defence at the time.

Mr Staley has hired Kathleen Harris, a top lawyer, to represent him as he gears up for a fight to save his reputa- tion. Ms Harris also acted on Mr Staley’s behalf when he was separately investigated for trying to unmask a whistleblower while at the bank, which led to him being fined in 2018.

Mr Staley will continue to receive his current fixed pay of £2.4m and a pension allowance of £120,000 for the year, alongside any other benefits until October 2022, and Barclays will pay for him to relocate to the US.

Ms Harris, the FCA and Barclays declined to comment. A spokesman for Mr Staley said he intends to contest the initial findings and will not yet make any further public statements.