© Reuters.
Former Barclays CEO Jes Staley has been sanctioned with a £1.8 million fine by the Financial Conduct Authority (FCA), following irregularities in disclosures related to his involvement with financier Jeffrey Epstein. The decision was made under the oversight of Therese Chambers of the FCA, who pointed out Staley’s unsound judgement and deception regarding his ties with Epstein.
On Thursday, Barclays announced through a market notice that it is seeking Staley’s forfeiture of £17.8 million in past bonuses and compensations. This development comes before Barclays’ third-quarter financial results and follows JPMorgan’s $75 million Epstein-related settlement with the U.S. Virgin Islands.
The FCA stated that Staley endorsed a misleading letter sent to both the authority and Barclays, which distorted facts about his relationship with Epstein, particularly their last meeting. The FCA cited Epstein’s criminal status and the distorted facts as grounds for Staley’s ban from high-level finance positions.
An initial probe into Staley’s ties with Epstein led to his resignation and caused a 3% share drop for Barclays. Staley has been banned from occupying any executive finance roles, a decision currently under review by the Upper Tribunal.
According to InvestingPro data, Barclays’ market capitalization stands at $28184.02M USD and the company is trading at a P/E ratio of 4.26. This low P/E ratio suggests that the company may be undervalued relative to its earnings. Barclays’ revenue for the last twelve months (LTM2023.Q2) is reported at $29842.65M USD, but its quarterly revenue growth for FY2023.Q2 is negative, indicating a slowdown in the company’s revenue growth.
InvestingPro Tips also highlight that Barclays has raised its dividend for 3 consecutive years and is a prominent player in the Banks industry. Despite facing challenges such as weak gross profit margins, the company has remained profitable over the last twelve months and analysts predict it will continue to be profitable this year. For more insights like these, check out InvestingPro’s premium membership which offers additional tips and real-time metrics.
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