Jpmorgan Seeks To Sever Ties With Former Executive Jes Staley With A Lawsuit
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JPMorgan is seeking a break with former executive Jes Staley over his ties to Jeffrey Epstein.
JPMorgan against Stanley
JPMorgan Chase & Co. sued former executive Jes Staley over his ties to Jeffrey Epstein, identifying Staley as the “powerful financial executive” accused of sexual assault in a lawsuit against the bank.
JPMorgan's lawsuit against Staley adds it to the woman's lawsuit and another Epstein-related case brought by the U.S. Virgin Islands. A legal maneuver allows the bank to argue that Staley should pay damages if the bank is held liable.
The attempt to shift JPMorgan's attention to Staley marks a break with the former executive who rose to the top of the bank and was once considered a potential successor to CEO Jamie Dimon.
The bank sought to have the lawsuits dismissed, saying it had no knowledge of Epstein's alleged crimes and could not be held accountable.
The U.S. Virgin Islands lawsuit alleges that Staley vouched for Epstein as a client of JPMorgan when internal compliance specialists asked questions. The bank's compliance team repeatedly asked for assurances after Epstein was first charged with sex offenses in 2006, when he pleaded guilty to those charges in 2008.
Brad Edwards, one of the lawyers representing the woman in the civil suit against JPMorgan, said the indictment "is a damning admission of wrongdoing on JPMorgan's part."
Lawsuit
The U.S. Virgin Islands are suing JPMorgan, alleging that the bank facilitated Epstein's alleged sex trade, including at his island home, allowing him access to bank accounts and authorizing wire transfers he used to pay young women. The lawsuit says the bank approved Epstein's payments to at least 20 young women or girls who were victims of Epstein.
Late last year, an anonymous woman claimed that JPMorgan was helping Epstein with the sex trade by allowing him to remain a customer and helping him transfer money to victims of the deceased financier.
A woman in her lawsuit against the bank said a friend of Epstein sexually assaulted her using aggressive force, but said she was afraid to identify him publicly.
JPMorgan said it did not facilitate any possible crimes committed by Epstein. The bank said the U.S. Virgin Islands should have stopped Epstein.
The lawsuit also alleges that Epstein wired money to a woman after Staley stayed at Epstein's residence in Palm Beach, Florida, and then again to the same woman when Staley told Epstein he would be in London.
The lawsuit also alleges that Staley vouched for Epstein as a JPMorgan client when internal compliance officers asked questions. The bank's compliance team repeatedly asked for assurances after Epstein was first charged with sex offenses in 2006, when he pleaded guilty to those charges in 2008.
JPMorgan said it cut off Epstein's accounts in 2013, shortly after Staley left the bank.
The bank sought to have the lawsuits dismissed, saying it had no knowledge of Epstein's alleged crimes and could not be held accountable.
Staley and Epstein
Staley partnered with Epstein when he headed JPMorgan's asset management unit, which covers the company's operations serving wealthy clients.
After leaving JPMorgan in 2013, Staley became the chief executive of British banking giant Barclays PLC. Resigned in November 2021 amid a UK regulatory investigation into whether the bank was telling the truth about his relationship with Epstein, who was accused of sex trafficking prior to his alleged suicide in 2019.
Staley exchanged more than a thousand emails with convicted sex offender Jeffrey Epstein, some of which contained photos of young women in seductive poses, according to court documents.
Staley maintained that he was friends with Epstein, but never knew of his alleged crimes.
JPMorgan share price
Since the beginning of the year, JP Morgan shares have been growing, exceeding the level of 140.00. Since early March, the stock has begun its decline and recently closed at 137.80.
Source: wsj.com, finance.yahoo.com
