A bombshell week My marriage is at risk, says Staley, in court testimony

Early a year and a half after Jes Staley was banned from the City for allegedly lying about the depth of his relationship with the sex offender Jeffrey Epstein, the former Barclays CEO arrived in court ready for a fight.

- Kalyeena Makortoff

His attempt to overturn the City watchdog's ruling in a two-week hearing covered in detail a lot of ground that was already in the public domain, but the Financial Conduct Authority (FCA) dropped a bombshell on day eight.

The Rolls Building courtroom off London's Chancery Lane fell silent as the barrister for the City's financial watchdog outlined the contents of a binder handed to Staley.

Leigh-Ann Mulcahy KC explained she was not looking to invade the former banker's privacy but needed to establish his connections to Epstein, who the FCA alleges was much closer to Staley than previously claimed.

"You accept, do you, that you had sexual intercourse with a woman at Mr Epstein's brother's apartment on East 66th Street?" Mulcahy asked, citing a New York address.

"Yes," Staley said. The American ex-banker, who has a wife and two daughters, said the woman was an employee of Epstein, the late financier who died in prison in 2019 while awaiting trial for trafficking underage girls for sex.

"We had one encounter," Staley told the court. "Much to my embarrassment today."

It was a shock admission in a high-profile legal case that needed little help making headlines.

The hearing - meant to determine whether the former high street bank boss had lied about ties to a now-dead sex offender - had already named some of the world's largest banks, business executives, politicians, celebrities and royalty in evidence.

The case, in fact, had been brought by Staley. It was part of last-ditch efforts to salvage his reputation, and challenge the regulator's investigation - dubbed Operation Downey - which also resulted in a £1.8m fine.

The ruling cost Staley a further £18m in pay and bonuses from Barclays two years after he was forced to resign and in effect end his 43-year career in finance.