WEBVTT - How Deep Was the Jeffrey Epstein-Jes Staley Friendship?

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<v Speaker 1>This is this real sense. Epstein had gone beyond being

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<v Speaker 1>a friend. He was practically a sort of surrogate member

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<v Speaker 1>of the Staley family to an extraordinary degree.

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<v Speaker 2>Really, I'm Francis Laqua and I'm David Merritt, and this is.

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<v Speaker 3>In the City, Bloomberg's podcast, connecting you to the conversations

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<v Speaker 3>at the heart of the City of London.

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<v Speaker 4>We're going to take a dive into one of our

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<v Speaker 4>top stories that we have out this week that centers

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<v Speaker 4>on the details behind the relationship between Jeffrey Epstein and

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<v Speaker 4>former Barclay's chief executive Jess Day. And you know, there

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<v Speaker 4>are one hundreds thousands of emails communications between the pair

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<v Speaker 4>that the Bloomberg team have been diving into for months now,

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<v Speaker 4>and we're really pleased to have join us in the studio.

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<v Speaker 4>The team responsible for this investigation. We have Harry Wilson,

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<v Speaker 4>our financial reporter who covers the ins and outs of

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<v Speaker 4>the banking industry. Jonathan Browning, our reporter across financial crimes

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<v Speaker 4>and the courts in London, and his counterpart with me

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<v Speaker 4>here in New York this week, avera Benny Morrison, who

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<v Speaker 4>is on the legal team here. Welcome more to in

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<v Speaker 4>the City, Thanks for having us. Clearly this was a

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<v Speaker 4>real group effort on this story. There's a huge amount

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<v Speaker 4>of information to unpack here for a story that really

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<v Speaker 4>does lift the lid on this relationship that's caused a

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<v Speaker 4>huge amount of introspection both at Barclays and also JP

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<v Speaker 4>Morgan as well. Harry, could you kick us off with

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<v Speaker 4>how this story came about, what first prompted you to

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<v Speaker 4>take a look at all of this information and when

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<v Speaker 4>did you start working on it?

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<v Speaker 1>So, I think the staly Epstein story has been gestationed

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<v Speaker 1>for several years now. We've known that they had these contacts.

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<v Speaker 1>Obviously it was the reason that jets Daily stepped down

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<v Speaker 1>in the first places at Barkley's CEO, So we've known

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<v Speaker 1>that there was this relationship. What we've got though, in

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<v Speaker 1>the last I guess sort of six to nine months,

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<v Speaker 1>is a really detailed picture coming through legal disclosure, whether

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<v Speaker 1>that's from the US Virgin Islands case against JP Morgan

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<v Speaker 1>or a separate now settled legal case Jane do One,

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<v Speaker 1>and that has come with it thousands of pages of

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<v Speaker 1>legal documentation, which really has kind of given us an

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<v Speaker 1>unprecedented insight into into relationship. Know how it worked on

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<v Speaker 1>a daily basis, and you really get the kind of

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<v Speaker 1>sense of the debt for friendship that had developed between

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<v Speaker 1>Jess Stately and Jeffrey Epstein. And I guess when we

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<v Speaker 1>started seeing just how much was coming out, that kind

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<v Speaker 1>of came a point where we thought, well, we've really

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<v Speaker 1>got to start putting all this stuff together and trying

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<v Speaker 1>to join up the dots and see what the picture

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<v Speaker 1>looks like when you take a sort of step back

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<v Speaker 1>and look at it, not just on the sort of

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<v Speaker 1>you know, that day's particular headline, but what it looked

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<v Speaker 1>like in the round.

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<v Speaker 3>Jonathan, we're four years on after Epstein's death in prison

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<v Speaker 3>by suicide. It's amazing that it's taken this long to

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<v Speaker 3>have all of the emails. This is because there are

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<v Speaker 3>new probes or a new lawsuits.

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<v Speaker 5>Yeah, it's the US litigation that has been instrumental in

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<v Speaker 5>uncovering all these emails between the There is a separate

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<v Speaker 5>UK investigation that is being conducted by the Financial Conduct

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<v Speaker 5>Authority that's into whether or not just Daily misled the

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<v Speaker 5>board about this very issue about the relationship that he

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<v Speaker 5>had with Epstein, and we are waiting for the results

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<v Speaker 5>of that. But that has been a entirely kind of

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<v Speaker 5>confidential prob We've learned nothing from the FCA. We're still

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<v Speaker 5>waiting for that decision to come through. It's the disclosure

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<v Speaker 5>process in the US that has been so valuable and

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<v Speaker 5>has been so revealing about the way that these two

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<v Speaker 5>incredibly powerful men essentially boosted each other the whole way

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<v Speaker 5>through their career AVA.

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<v Speaker 4>So it was the US case that first of all

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<v Speaker 4>shone a light on these emails, talk us through the

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<v Speaker 4>process of going through all of this communications and how

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<v Speaker 4>you piece together the story from the disclosures from the court.

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<v Speaker 6>It felt like every single day there were some new

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<v Speaker 6>disclosures or emails between Epstein and Study that were being

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<v Speaker 6>unredo acted as part of these two court cases.

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<v Speaker 4>So it wasn't order one go. It was a kind

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<v Speaker 4>of slow drip drip of all of these communications.

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<v Speaker 6>Yes, exactly. It's been a drip drip since both the

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<v Speaker 6>cases were filed separately at the end of last year,

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<v Speaker 6>and it's been very piecemeal, bit by bit looking at

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<v Speaker 6>some revelation and a new email that sheds light on

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<v Speaker 6>the depth of their friendship. So it was really helpful

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<v Speaker 6>to take a step back and enlightening I guess for

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<v Speaker 6>Harry to put together this timeline of all of the

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<v Speaker 6>emails and correspondence between the men in correlation with different

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<v Speaker 6>events that were happening, like Jeffrey Epstein being convicted of

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<v Speaker 6>listening a mind of a prostitution in Florida, and what

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<v Speaker 6>kind of conversations the pair were having at that time

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<v Speaker 6>and what was going on inside the bank.

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<v Speaker 4>Were you shocked by what you read?

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<v Speaker 6>Yes, some of the emails and the conversations that were

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<v Speaker 6>happening between the two shocking a because it was on

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<v Speaker 6>jess Day's work email, which sort of beggars belief and

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<v Speaker 6>be the contents of it, suggestion about women, apparent references

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<v Speaker 6>to beauty and the Beast and snow white which is

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<v Speaker 6>alleged to be about different women that maybe they had

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<v Speaker 6>seen the weekend before. So that kind of communication and

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<v Speaker 6>that correspondence was quite a suppose shocking.

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<v Speaker 3>Toad and Jonathan, you say, Bay said, the relationship between

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<v Speaker 3>Stale and Epstein beyond that of banker and client. What

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<v Speaker 3>do we actually know?

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<v Speaker 5>Well, I think we've discovered and within kind of Harry's

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<v Speaker 5>timeline was the way in which they were, in one

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<v Speaker 5>sense quite reliant upon each other. That there are repeated

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<v Speaker 5>and regular instances where Jeffrey Epstein is kind of involved

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<v Speaker 5>in the JP Morgan strategy in that JP Morgan kind

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<v Speaker 5>of plans for big deals, perhaps with Bill Gates, for instance,

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<v Speaker 5>and he's putting kind of Jess Daily forward all the time.

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<v Speaker 5>And we can see the whole way through the timeline

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<v Speaker 5>this sort of regular intervention from Epstein to kind of

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<v Speaker 5>push Jess Daily fear forward. And it's mutually beneficial because

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<v Speaker 5>on the other side of the coin we have the

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<v Speaker 5>disclosure where we can see Epstein being kind of supported

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<v Speaker 5>and protected by Jess.

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<v Speaker 1>Stay.

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<v Speaker 4>Give us a little bit more of the color of

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<v Speaker 4>this sort of mutual support network, Jonathan. So there were

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<v Speaker 4>you know, stays in Caribbean islands, there was promotion of

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<v Speaker 4>each other's work. So tell us how exactly all the

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<v Speaker 4>sort of backslapping manifested itself.

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<v Speaker 5>The two are obviously very close personally to each other.

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<v Speaker 5>Even after Epstein was jailed in Florida in June two

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<v Speaker 5>thousand and eight, less than a fortnight later, Staley writes

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<v Speaker 5>to him, going, I miss you. The world is a

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<v Speaker 5>tough place hanging there. Just a few days later, he's

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<v Speaker 5>asking for epstein advice on his pay negotiations with Diamond and.

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<v Speaker 4>So sorry this is and this is our So Epstein

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<v Speaker 4>has been convicted at this point and Jess Staley asks

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<v Speaker 4>him for some tips on how to negotiate his salary.

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<v Speaker 5>Epstein replies, do not give in. I'll try to call

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<v Speaker 5>you later. And how much was it he was asking

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<v Speaker 5>for the discussion? Goes tell him, which is Diamond a

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<v Speaker 5>one million dollar increase to twenty five million dollars.

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<v Speaker 4>So these are numbers, obviously that are beyond the imagination

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<v Speaker 4>of most people. And one of the real shocking things

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<v Speaker 4>for the public I think in the whole Epstein scandal

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<v Speaker 4>was the way in which the establishment or establishment figures

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<v Speaker 4>like Jess Staley and of course we talked about Britain

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<v Speaker 4>around people like Prince Andrew, continued to communicate despite his

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<v Speaker 4>convictions and despite the things that he had been proved

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<v Speaker 4>guilty of doing. EVA. As you went through these emails

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<v Speaker 4>and you see the timeline that you've referenced on here,

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<v Speaker 4>what were some of the more surprising things that these

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<v Speaker 4>men continued to discuss despite what he had been convicted of.

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<v Speaker 6>I think exactly what Jonathan was saying, the fact that

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<v Speaker 6>Staley kept going back to him for advice on different things,

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<v Speaker 6>pay negotiations, and Epstein was organized meetings with politicians global

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<v Speaker 6>figures as well for Staley to meet all around the world.

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<v Speaker 6>And Staley as well went to him for advice about

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<v Speaker 6>his daughter's career and for help to actually get her

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<v Speaker 6>into a course at Columbia University in New York. So

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<v Speaker 6>there was that mutually beneficial professional relationship. But I think Staley,

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<v Speaker 6>based on the emails and the cland of language he

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<v Speaker 6>was using, really saw Epstein as a true friend. And

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<v Speaker 6>when he was released from prison in Florida in and eight,

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<v Speaker 6>two thousand and nine, in one of the emails, he

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<v Speaker 6>talks about how nice it was to be able to

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<v Speaker 6>see his friend in New York again and give him

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<v Speaker 6>a long hug. So that sort of illustrates how deep

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<v Speaker 6>the friendship was as much as it was a professional

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<v Speaker 6>relationship as well.

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<v Speaker 4>So as you read these emails, the extent of this

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<v Speaker 4>friendship seems much deeper than everyone thought.

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<v Speaker 1>I think one episode really sticks in my mind, which

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<v Speaker 1>is a March fifth, twenty eleven emails. So this is

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<v Speaker 1>right about the time when the banks in deep discussions

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<v Speaker 1>about whether Epstein should remain a client to the bank.

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<v Speaker 1>Compliance clearly wants him out. Management will clearly want him out,

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<v Speaker 1>but Stay remains as resolutely loyal to him as ever,

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<v Speaker 1>and he also starts to talk about just how important

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<v Speaker 1>he is, and so he writes Debbie, this is his wife, Deborah.

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<v Speaker 1>Debbie and I were talking tonight about what you've meant

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<v Speaker 1>to me and Alexa, Alexa being his daughter. You have

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<v Speaker 1>paid a price for what has been accused, but we

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<v Speaker 1>know what you have done for us, and we count

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<v Speaker 1>you as one of our deepest friends and most honest

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<v Speaker 1>of people. And Epstein then just replies with a single

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<v Speaker 1>word family. And this actually this work family gets used

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<v Speaker 1>time and again in emails.

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<v Speaker 3>What are the actual accusations here? I mean, this is

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<v Speaker 3>not only allegedly just Daily keeping him as a client

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<v Speaker 3>when he probably shouldn't have. There are darker aspects to

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<v Speaker 3>this relationship.

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<v Speaker 1>Yes, So one of the sort more disturbing aspects of

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<v Speaker 1>the case are the allegations that just Daily wasn't just

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<v Speaker 1>a sort of passive witness of these things, but was

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<v Speaker 1>actually himself and assailant in one of these allegations. Now,

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<v Speaker 1>obviously he has denied these allegations, but that is actually

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<v Speaker 1>part of what forms say JP Morgan case against him,

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<v Speaker 1>which at the moment obviously that's the only thing that

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<v Speaker 1>we see. But JP Morgan are also going after records

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<v Speaker 1>related to the US law enforcement records related to some

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<v Speaker 1>of these aspects, and I guess could be particularly difficult

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<v Speaker 1>for him, particularly given the size of the potential JP

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<v Speaker 1>Morgan claim against him. So figures have been bandied around

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<v Speaker 1>in the tens of millions, but JP Morgan could clearly

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<v Speaker 1>go after him for damages as well as compensation, which

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<v Speaker 1>could be incredibly expensive.

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<v Speaker 6>One of the key legal questions in the litigation over

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<v Speaker 6>here when it comes to Jess Dailey, was he acting

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<v Speaker 6>within the scope of his role. And an argument that

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<v Speaker 6>he could make people who work in similar positions could

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<v Speaker 6>make is he's in the business of managing relationships and

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<v Speaker 6>bringing business to the bank, and he's certainly outlined in

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<v Speaker 6>some arguments that he was acting within the scope of

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<v Speaker 6>his employment. JP Morgan though, has a que him of

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<v Speaker 6>being involved in sexual misconduct, which Daily strenuously denies. So

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<v Speaker 6>they're arguing that, well, that's definitely not within the scope

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<v Speaker 6>of your job role. But I think a lot of

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<v Speaker 6>people are looking at some of the allegations that are

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<v Speaker 6>coming out about just Daily in the way that he

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<v Speaker 6>was presenting himself and communicating with Epstein and asking questions

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<v Speaker 6>about well, what is the definition of that job? And

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<v Speaker 6>can we land in hot water for how we're dealing

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<v Speaker 6>with our clients as well.

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<v Speaker 3>So, Harry, when you look at this, where are the

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<v Speaker 3>compliance officers of JP Morgan?

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<v Speaker 1>So I think this is quite interesting thing. So one

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<v Speaker 1>of the key moments that we picked out in this

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<v Speaker 1>story is January of twenty eleven, and at this point

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<v Speaker 1>you have this sort of extraordinary sort of confluence of events.

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<v Speaker 1>So for when you have just Daily that month actually

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<v Speaker 1>goes and visits on his yacht, he sales to Epstein's island, well,

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<v Speaker 1>while Epstein apparently isn't there. But at the same time

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<v Speaker 1>Epstein is also trying to set up a meeting with

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<v Speaker 1>him with Bill Gates, which is not clear if that

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<v Speaker 1>actually took place. And then Ekrey also is as over

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<v Speaker 1>pred mentioned, at this time, Epstein is appearing to help

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<v Speaker 1>Stay's daughter into Columbia University, into an elite program. And

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<v Speaker 1>right at the moment this is happening, in the backdrop,

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<v Speaker 1>you've got compliance who are basically saying we want this

0:12:15.000 --> 0:12:17.480
<v Speaker 1>guy out to the bank. So on the one hand

0:12:17.520 --> 0:12:21.160
<v Speaker 1>you have these incredibly close contacts between Jess Dally and Epstein,

0:12:21.360 --> 0:12:24.240
<v Speaker 1>but also he's also there as a kind of arbiter

0:12:24.360 --> 0:12:27.200
<v Speaker 1>on whether Epstein can remain a client to the bank,

0:12:27.240 --> 0:12:30.280
<v Speaker 1>and now the bank itself. At that point, you've got

0:12:30.400 --> 0:12:33.679
<v Speaker 1>emails suggesting that the head of the private bank actually

0:12:33.720 --> 0:12:37.360
<v Speaker 1>wanted him gone. You've got compliance effectively saying we don't

0:12:37.360 --> 0:12:39.360
<v Speaker 1>think having this guy is a good idea. And this

0:12:39.400 --> 0:12:42.360
<v Speaker 1>is January twenty eleven. I should add Epstein actually leaves

0:12:42.400 --> 0:12:44.800
<v Speaker 1>the bank in July twenty thirteen, so two and a

0:12:44.840 --> 0:12:48.520
<v Speaker 1>half years later before he actually goes, and it's very

0:12:48.559 --> 0:12:50.440
<v Speaker 1>clear from a lot of his emails that the only

0:12:50.520 --> 0:12:52.760
<v Speaker 1>reason that he remains a client to the bank, at

0:12:52.840 --> 0:12:55.600
<v Speaker 1>least this is the opinion of staff at the time,

0:12:56.040 --> 0:12:59.760
<v Speaker 1>is that it's jets Stay's relationship with Epstein that basically

0:13:00.160 --> 0:13:00.959
<v Speaker 1>saved him.

0:13:01.400 --> 0:13:04.240
<v Speaker 4>And of course, after all of this, Harry he's hired

0:13:04.280 --> 0:13:07.360
<v Speaker 4>as chief executive of Barclay's, one of the most prestigious

0:13:07.440 --> 0:13:11.200
<v Speaker 4>jobs in banking in the UK. How is someone with

0:13:11.320 --> 0:13:14.640
<v Speaker 4>this relationship that has been analyzed by JP Morgan, how

0:13:14.640 --> 0:13:16.600
<v Speaker 4>they able to walk into that sort of job.

0:13:17.080 --> 0:13:19.640
<v Speaker 1>I don't think that the relationship has really been looked

0:13:19.679 --> 0:13:21.920
<v Speaker 1>at at that point. You know, there've been kind of

0:13:22.000 --> 0:13:24.320
<v Speaker 1>odd sort of stirrings here and there that the two

0:13:24.440 --> 0:13:25.880
<v Speaker 1>were very close in this sort of thing, but it

0:13:25.960 --> 0:13:30.880
<v Speaker 1>wasn't actually a well known thing. I guess in the

0:13:30.920 --> 0:13:33.080
<v Speaker 1>world of finance. It might well have been very well

0:13:33.120 --> 0:13:35.840
<v Speaker 1>known at least among some people in cy Jping Morgan,

0:13:36.080 --> 0:13:38.120
<v Speaker 1>but it hadn't actually got out into the sort of

0:13:38.120 --> 0:13:41.199
<v Speaker 1>the wider world. And it's only now that with hindsight

0:13:41.240 --> 0:13:42.920
<v Speaker 1>we can see just how close they were and how

0:13:43.000 --> 0:13:46.240
<v Speaker 1>obvious it is that they had this tight bond. But

0:13:46.559 --> 0:13:51.280
<v Speaker 1>at the time it was I guess it was hearsay speculation.

0:13:51.760 --> 0:13:54.000
<v Speaker 1>You know, there wasn't really much to it. There was

0:13:54.000 --> 0:13:56.200
<v Speaker 1>the odd stories that came out, but there wasn't really

0:13:56.200 --> 0:13:57.360
<v Speaker 1>anything substantive.

0:13:57.840 --> 0:14:00.600
<v Speaker 5>One of the things that happened kind of when Staley

0:14:00.679 --> 0:14:04.280
<v Speaker 5>was hired is that Diamond says in his deposition for

0:14:04.320 --> 0:14:07.600
<v Speaker 5>this case that he was asked by the Barclays chairman

0:14:07.679 --> 0:14:10.040
<v Speaker 5>whether there was anything he ought to know about Jess

0:14:10.080 --> 0:14:14.920
<v Speaker 5>Staley before he hired him, and he said no. Diamond said, now,

0:14:15.480 --> 0:14:18.400
<v Speaker 5>with that hindsight, he'd have given an entirely different answer.

0:14:18.640 --> 0:14:21.360
<v Speaker 3>I guess part of it is also confidentiality. So if

0:14:21.360 --> 0:14:23.560
<v Speaker 3>you look at the scheduled meetings, I think between over

0:14:23.600 --> 0:14:26.120
<v Speaker 3>a seven year period, right this is from two thousand

0:14:26.160 --> 0:14:29.280
<v Speaker 3>and nine twenty fifteen, or about sixty scheduled meetings. We

0:14:29.320 --> 0:14:31.520
<v Speaker 3>don't know how many of them actually took place, but

0:14:31.600 --> 0:14:35.240
<v Speaker 3>is that unusual for, you know, a big client of.

0:14:35.160 --> 0:14:40.400
<v Speaker 5>The bank, for someone in Staley's position at the time.

0:14:40.480 --> 0:14:43.440
<v Speaker 5>I think that number of meetings goes above and beyond

0:14:43.640 --> 0:14:47.280
<v Speaker 5>what one would expect. Even in the final year at

0:14:47.320 --> 0:14:51.320
<v Speaker 5>the bank, he had fourteen scheduled meetings just in twenty twelve.

0:14:51.040 --> 0:14:52.640
<v Speaker 1>I supposed to point to make there as well. Was

0:14:52.680 --> 0:14:56.440
<v Speaker 1>he at that point he had no dealings with the

0:14:56.520 --> 0:14:58.960
<v Speaker 1>asset Meagement private bank. You know, he'd been promoted to

0:14:59.400 --> 0:15:03.000
<v Speaker 1>the chiefs of J. P. Morgan's investment bank in twenty ten,

0:15:03.120 --> 0:15:05.640
<v Speaker 1>so he was well out of the sort of management

0:15:05.640 --> 0:15:08.040
<v Speaker 1>reabit where he might have needed to know the clients.

0:15:08.080 --> 0:15:10.280
<v Speaker 1>This was obviously something he chose to do.

0:15:10.280 --> 0:15:12.320
<v Speaker 3>Do we know if jess Day was the only executive

0:15:12.920 --> 0:15:14.880
<v Speaker 3>Jeffrey Epstein was emailing.

0:15:14.400 --> 0:15:17.960
<v Speaker 1>With, so we know that he was also emailing with

0:15:18.200 --> 0:15:21.600
<v Speaker 1>Mary Urdos, who remains at JP Morgan. She's the chief

0:15:21.640 --> 0:15:24.440
<v Speaker 1>executive of their global asset management arm, and that the

0:15:24.480 --> 0:15:27.320
<v Speaker 1>two of them, the communications there are an't as frequent

0:15:27.480 --> 0:15:30.240
<v Speaker 1>or quite as warm as between Staley and Epstein, but

0:15:30.760 --> 0:15:32.360
<v Speaker 1>were a fair few of them, and quite a few

0:15:32.360 --> 0:15:36.080
<v Speaker 1>of them were quite friendly. So there's been open questions

0:15:36.080 --> 0:15:38.480
<v Speaker 1>there about what her own role in this has been.

0:15:38.520 --> 0:15:41.560
<v Speaker 1>Again we should say that obviously J P. Morgan themselves

0:15:41.600 --> 0:15:44.520
<v Speaker 1>have played down the links there and said that her

0:15:44.560 --> 0:15:47.480
<v Speaker 1>behavior at all times was above board. But clearly, obviously

0:15:47.760 --> 0:15:50.400
<v Speaker 1>as more information comes to light, the picture is developing,

0:15:50.400 --> 0:15:52.160
<v Speaker 1>and this is very much a it still looks like

0:15:52.200 --> 0:15:53.240
<v Speaker 1>a developing picture.

0:15:53.800 --> 0:15:57.440
<v Speaker 3>How much business was Ebstein bringing two to JP Morgan

0:15:57.600 --> 0:15:59.160
<v Speaker 3>is It difficult to have a number.

0:15:58.960 --> 0:16:02.440
<v Speaker 1>On that, guess a rough idea. So he had several

0:16:02.560 --> 0:16:05.640
<v Speaker 1>hundred million dollars worth of assets with the firm, and

0:16:06.120 --> 0:16:08.440
<v Speaker 1>it looks like he'd been a customer of the bank,

0:16:08.640 --> 0:16:12.400
<v Speaker 1>perhaps since around the early nineteen nineties. So in that sense,

0:16:12.440 --> 0:16:15.000
<v Speaker 1>you know a customer that's got, say argument's sake, at

0:16:15.080 --> 0:16:17.000
<v Speaker 1>least two three hundred million dollars in the bank would

0:16:17.000 --> 0:16:20.640
<v Speaker 1>have constituted a very significant customer of the bank and

0:16:20.640 --> 0:16:24.720
<v Speaker 1>obviously that would probably be generate a substantial amount of revenue.

0:16:24.760 --> 0:16:26.640
<v Speaker 1>And that's before, obviously you get into all the other

0:16:26.760 --> 0:16:29.640
<v Speaker 1>various ties and things that he might or might not

0:16:29.680 --> 0:16:32.160
<v Speaker 1>have been doing for the bank over that period.

0:16:32.720 --> 0:16:37.280
<v Speaker 6>For example, he was also involved in introducing JP Morgan

0:16:37.400 --> 0:16:39.920
<v Speaker 6>to some of the figures at Highbridge Capital in the

0:16:40.000 --> 0:16:42.520
<v Speaker 6>US here and JP Morgan ended up with a stake

0:16:42.760 --> 0:16:46.280
<v Speaker 6>in that fund as well. So there was the introductions

0:16:46.480 --> 0:16:48.800
<v Speaker 6>side of it as well, or the people that Epstein

0:16:48.920 --> 0:16:52.600
<v Speaker 6>was introducing to JP Morgan and just daily in particular,

0:16:53.080 --> 0:16:53.440
<v Speaker 6>if it.

0:16:53.400 --> 0:16:55.880
<v Speaker 4>Took us through what happens next with this case? What

0:16:55.960 --> 0:16:57.920
<v Speaker 4>sort of timeline are we seeing and how do you

0:16:57.920 --> 0:16:59.040
<v Speaker 4>see things progressing from here?

0:16:59.840 --> 0:17:02.880
<v Speaker 6>The cases has settled. That was the case brought by

0:17:03.040 --> 0:17:06.440
<v Speaker 6>a victim of Jeffrey Epstein, j DO one. She reached

0:17:06.480 --> 0:17:09.520
<v Speaker 6>a settlement with JP Morgan for two hundred and ninety

0:17:09.520 --> 0:17:13.520
<v Speaker 6>million dollars several weeks ago. Now there's just one outstanding

0:17:13.520 --> 0:17:16.320
<v Speaker 6>case left the US Virgin Islands. Jeffrey Epstein had a

0:17:16.320 --> 0:17:19.200
<v Speaker 6>private island in the US Virgin Islands and that's where

0:17:19.280 --> 0:17:22.639
<v Speaker 6>Staley went on his yacht. As Harry mentioned earlier, the

0:17:22.680 --> 0:17:26.560
<v Speaker 6>bank and the territory are still litigating that the bank

0:17:26.560 --> 0:17:28.679
<v Speaker 6>has taken a bit of a harder stance with the

0:17:28.840 --> 0:17:32.840
<v Speaker 6>US Virgin Island's case, saying you're essentially being a bit

0:17:32.920 --> 0:17:35.479
<v Speaker 6>hypocritical here because you allowed him to live there with

0:17:35.800 --> 0:17:38.760
<v Speaker 6>three hundred million dollars in tax breaks and lacks sex

0:17:38.800 --> 0:17:41.520
<v Speaker 6>offender monitoring. So I think that they will fight that

0:17:41.640 --> 0:17:43.840
<v Speaker 6>a little bit harder. We're just going to wait and

0:17:43.920 --> 0:17:45.480
<v Speaker 6>see how that pans out in court.

0:17:45.680 --> 0:17:48.240
<v Speaker 4>And Jonathan, in terms of the FCA investigation, that is

0:17:48.280 --> 0:17:49.040
<v Speaker 4>still pending.

0:17:48.800 --> 0:17:51.760
<v Speaker 5>Right it's still pending. There were initial findings that we

0:17:51.840 --> 0:17:54.360
<v Speaker 5>know of that seemed to imply that the FAA had

0:17:54.359 --> 0:17:56.720
<v Speaker 5>at least come down on the position that there had

0:17:56.760 --> 0:18:01.640
<v Speaker 5>been some mischaracterization of the relationship, that Staley had indicated

0:18:01.680 --> 0:18:04.399
<v Speaker 5>his intention to fight that he had a process that

0:18:04.480 --> 0:18:06.720
<v Speaker 5>went through the FCA, and then there's the question mark

0:18:06.760 --> 0:18:09.280
<v Speaker 5>about whether it goes to the Upper Tribunal, and that

0:18:09.400 --> 0:18:11.400
<v Speaker 5>might be a moment when it kind of comes out

0:18:11.440 --> 0:18:14.080
<v Speaker 5>into the public domain into the UK as well.

0:18:14.359 --> 0:18:17.399
<v Speaker 4>Taking a step back from the situation through all the

0:18:17.440 --> 0:18:20.760
<v Speaker 4>banks and as Franci mentioned earlier, the regulators, what lessons

0:18:21.440 --> 0:18:25.800
<v Speaker 4>are financial institutions taking from this I mean, as ever

0:18:25.920 --> 0:18:27.840
<v Speaker 4>you said it was astonishing that jess Stalia was putting

0:18:27.880 --> 0:18:30.919
<v Speaker 4>these emails on his work email account. What are going

0:18:30.960 --> 0:18:33.439
<v Speaker 4>to be the changes the bank's put in place on

0:18:33.520 --> 0:18:36.200
<v Speaker 4>the back of all of this or of these revelations.

0:18:36.720 --> 0:18:38.280
<v Speaker 4>I think one of the things that comes out of

0:18:38.320 --> 0:18:41.520
<v Speaker 4>it is the lack of knowledge about who exactly was

0:18:41.560 --> 0:18:45.280
<v Speaker 4>in charge here, because what you've got is Compliance wanted

0:18:45.320 --> 0:18:46.919
<v Speaker 4>out of the bank, You've got the management of the

0:18:47.000 --> 0:18:49.119
<v Speaker 4>private bank that wants him out, and then you have

0:18:49.200 --> 0:18:52.120
<v Speaker 4>this kind of unofficial role that Staley is playing because

0:18:52.119 --> 0:18:54.880
<v Speaker 4>at this point he's not actually within the private bank

0:18:54.920 --> 0:18:57.800
<v Speaker 4>outt management, and it's unclear who really was the final

0:18:57.880 --> 0:18:59.879
<v Speaker 4>arbiter in these things. This has been a matter that's

0:19:00.119 --> 0:19:04.120
<v Speaker 4>debated in several of the depositions about who exactly would

0:19:04.160 --> 0:19:07.440
<v Speaker 4>have had the power to have turfed Epstein out of

0:19:07.520 --> 0:19:09.600
<v Speaker 4>the bank. And I think if there's one sort of

0:19:09.720 --> 0:19:12.160
<v Speaker 4>lesson coming out of this loud and clear, is that

0:19:12.200 --> 0:19:15.720
<v Speaker 4>banks must have some kind of much clearer chain of

0:19:15.720 --> 0:19:18.919
<v Speaker 4>command in terms of who is actually responsible for these decisions,

0:19:18.960 --> 0:19:21.440
<v Speaker 4>and obviously making sure that whoever that person is responsible

0:19:21.440 --> 0:19:24.800
<v Speaker 4>for that decision isn't themselves compromised in some way due

0:19:24.840 --> 0:19:27.359
<v Speaker 4>to their own closeness to the client in question.

0:19:27.760 --> 0:19:30.400
<v Speaker 5>The other thing is that yet again it's a case

0:19:30.400 --> 0:19:34.919
<v Speaker 5>of non potentially of non financial misconduct. And for the FCA,

0:19:35.040 --> 0:19:38.280
<v Speaker 5>for the regulator here, it's in London, it's getting those

0:19:38.359 --> 0:19:42.120
<v Speaker 5>very questions with chrispinode and at this very moment as

0:19:42.160 --> 0:19:45.159
<v Speaker 5>to the extent of its supervision of his firm, of

0:19:45.200 --> 0:19:48.720
<v Speaker 5>the firm that bought Chrispinodi's name, and it's in a

0:19:48.800 --> 0:19:52.560
<v Speaker 5>very difficult position. It has a very very difficult position

0:19:52.840 --> 0:19:56.560
<v Speaker 5>sort of responsibility to ensure an investigation is fair. But

0:19:57.240 --> 0:20:00.920
<v Speaker 5>it's yet another example of a regulator kind of battling

0:20:00.960 --> 0:20:05.040
<v Speaker 5>with what to do with culture and non financial misconduct.

0:20:05.600 --> 0:20:13.119
<v Speaker 4>Thank you, thanks, thanks for listening to this week's in

0:20:13.160 --> 0:20:15.280
<v Speaker 4>the City. We'll be back next week.

0:20:15.240 --> 0:20:17.240
<v Speaker 3>But in the meantime, if you like our show, please

0:20:17.280 --> 0:20:20.680
<v Speaker 3>head on Overtaple Podcasts or wherever you listen to podcasts

0:20:20.720 --> 0:20:22.080
<v Speaker 3>and rate, review and subscribe.

0:20:22.640 --> 0:20:25.080
<v Speaker 4>This episode was hosted by Me David Merritt and me

0:20:25.240 --> 0:20:28.760
<v Speaker 4>Franci Laqua. It was produced by Samasardi and Stacey Wong.

0:20:29.240 --> 0:20:30.960
<v Speaker 3>Additional editing by Blake Naples

0:20:31.119 --> 0:20:34.840
<v Speaker 4>And special thanks to Harry Wilson, Jonathan Browning and Ava

0:20:35.000 --> 0:20:35.760
<v Speaker 4>Benny Morrison