Latest / The Epstein Chronicles / Jes Staley And The Transcripts From His Epstein Related Trip To Congress (Part 11) (9/5/26)

Transcript

Jes Staley And The Transcripts From His Epstein Related Trip To Congress (Part 11) (9/5/26) · The Epstein Chronicles

• 0:00
  Speaker 1: What's up, everyone, and welcome to another episode of the
• 0:03
  Speaker 1: Epstein Chronicles. In this episode, we're going to pick up
• 0:06
  Speaker 1: where we left off with Jeff Staley and the transcript
• 0:09
  Speaker 1: from his trip to Congress. Question, could I just follow
• 0:13
  Speaker 1: up really quickly? You said he deserved it. But then,
• 0:16
  Speaker 1: in a previous email we had looked at, you also said,
• 0:19
  Speaker 1: from what I see, it's so unfair. Do you know
• 0:23
  Speaker 1: what you were referring to there? Sullivan jumps in. Look
• 0:26
  Speaker 1: at the email, please. Question, page eight of the first exhibit.
• 0:29
  Speaker 1: I introduced the packet, the last page. Answer, so this
• 0:33
  Speaker 1: is not 2011? We're talking about 2008 now? Question, yes. Answer,
• 0:38
  Speaker 1: so three years before? Question, two years before, I believe.
• 0:42
  Speaker 1: We were talking 2010. Answer, okay, sorry, two years before.
• 0:46
  Speaker 1: This is when I guess he was going to jail, right? Question,
• 0:50
  Speaker 1: he had already been there for about three months, I believe,
• 0:52
  Speaker 1: at the time. Answer, thank you. Yeah, I don't know
• 0:56
  Speaker 1: what happened on that day, why that day was particularly tough. Question,
• 1:00
  Speaker 1: do you believe you were saying it's unfair that he
• 1:02
  Speaker 1: was serving time? Answer, I don't recall if I was
• 1:05
  Speaker 1: referring to that. Question, Mr. Staley, do you believe Mr.
• 1:09
  Speaker 1: Epstein's guilty plea is supported by the merits, by the facts? Answer,
• 1:13
  Speaker 1: he pleaded guilty. Question, that's not my question, sir. Do
• 1:17
  Speaker 1: you believe that it's supported by the facts? Answer, I
• 1:20
  Speaker 1: have no reason to say it wouldn't be. Question, okay. Mr. Staley,
• 1:25
  Speaker 1: I'd like to ask you some questions about your time
• 1:27
  Speaker 1: at J.P. Morgan. Before I do, a quick point of clarification.
• 1:31
  Speaker 1: You gestured at me when you said that I read
• 1:33
  Speaker 1: a list of names of referrals. That was not me.
• 1:36
  Speaker 1: That was my colleague on the majority, who is also
• 1:39
  Speaker 1: a woman with brown hair. Answer, sorry. Question, you were
• 1:43
  Speaker 1: head of J.P. Morgan's private bank from 1999 to 2001, correct? Answer, correct. Question,
• 1:51
  Speaker 1: and when you were promoted to CEO of J.P. Morgan's
• 1:54
  Speaker 1: asset management division in 2001, correct? Answer, correct. Question, and
• 1:59
  Speaker 1: you ran J.P. Morgan's Asset Management Division until 2009, at
• 2:04
  Speaker 1: which point you were appointed as CEO of the Investment
• 2:07
  Speaker 1: Banking Division, correct? Answer, correct. Question, and you left J.P.
• 2:12
  Speaker 1: Morgan in early 2013, correct? Answer, correct. Question, is it
• 2:17
  Speaker 1: accurate to say during the time that you were at
• 2:19
  Speaker 1: the company that in addition to banking services, J.P. Morgan
• 2:23
  Speaker 1: Private Bank offered clients customized lending services, investment advice, portfolio management,
• 2:30
  Speaker 1: and wealth planning? Answer, yes. Question, are there other services
• 2:35
  Speaker 1: that the private bank offered that I've left out? Answer,
• 2:38
  Speaker 1: can you read that again? Question, other than banking services,
• 2:42
  Speaker 1: customized lending services, investment advice, portfolio management, and wealth planning? Answer, that,
• 2:49
  Speaker 1: and I would add things like custody, was brokerage in there? Question,
• 2:53
  Speaker 1: brokerage was not in there. Answer, so I would include brokerage.
• 2:57
  Speaker 1: So those are the two that I would add. Question,
• 3:00
  Speaker 1: thank you. Is it also accurate to say that JP
• 3:03
  Speaker 1: Morgan's private bank would have worked in conjunction with the
• 3:06
  Speaker 1: asset management division in offering some of those services? Answer, yes. Question,
• 3:12
  Speaker 1: when you were head of the private bank, who did
• 3:14
  Speaker 1: you report to? Answer, I think it changed over time,
• 3:18
  Speaker 1: but ultimately, I reported to Jamie Dimon. Question, so when
• 3:22
  Speaker 1: you were the head of the private bank, you reported
• 3:24
  Speaker 1: to the CEO directly? There wasn't someone in between you? Answer, yeah.
• 3:28
  Speaker 1: I think it was initially Sandy Warner, then I believe
• 3:30
  Speaker 1: it was Bill Harrison, and then I believe it was
• 3:32
  Speaker 1: Jamie Dimon. Question, and when you became CEO of Asset Management,
• 3:37
  Speaker 1: did the head of the private bank then report to you? Answer, yes. Question,
• 3:42
  Speaker 1: and when you were CEO of Asset Management, you continued
• 3:45
  Speaker 1: to report to the CEO? Answer, yes. Question, and when
• 3:50
  Speaker 1: you were CEO of Investment Banking, the same was true?
• 3:53
  Speaker 1: You reported directly to the CEO? Answer, yes. Question, I'd
• 3:57
  Speaker 1: like to ask you a few high-level questions about J.P.
• 3:59
  Speaker 1: Morgan's due diligence reports. First, what is a due diligence report? Answer,
• 4:05
  Speaker 1: it's a report the bank has studied a certain topic
• 4:08
  Speaker 1: and has done its due diligence, whether it's know your client,
• 4:12
  Speaker 1: whether it's AML, anti-money laundering. There are activities that a
• 4:16
  Speaker 1: due diligence report might be part of. Question, what action
• 4:19
  Speaker 1: would trigger the creation of a due diligence report? Answer,
• 4:23
  Speaker 1: I don't know specifically. Question, do you know what action
• 4:26
  Speaker 1: would trigger an update? Answer, I mean, opening an account,
• 4:31
  Speaker 1: extending a loan, I think those activities would trigger a
• 4:34
  Speaker 1: due diligence report. Question, okay, so opening an account triggers
• 4:38
  Speaker 1: a due diligence report. In the context of the accounts,
• 4:41
  Speaker 1: excuse me, in the context of an account, what would
• 4:45
  Speaker 1: trigger an update to a due diligence report? Answer, change
• 4:48
  Speaker 1: in assets, change in direction of the account, any concern
• 4:52
  Speaker 1: that the bank might have, about the account or the
• 4:54
  Speaker 1: holder of the account, that sort of thing. Question, who
• 4:58
  Speaker 1: would typically create an update or due diligence report? Answer again,
• 5:01
  Speaker 1: I would think someone in risk, someone in compliance, someone
• 5:05
  Speaker 1: in legal, that type of thing. Question, would due diligence
• 5:09
  Speaker 1: reports be shared with individuals in the private bank or
• 5:13
  Speaker 1: the asset management division? Answer, sure. Question, would anyone at J.P.
• 5:17
  Speaker 1: Morgan need to sign off on a due diligence report? Answer,
• 5:20
  Speaker 1: I imagine someone in risk or credit or compliance, yeah.
• 5:24
  Speaker 1: Would need to sign off on a due diligence report. Question,
• 5:28
  Speaker 1: could it be someone in the private bank or the
• 5:30
  Speaker 1: asset management division? Answer, well, there were people in asset
• 5:34
  Speaker 1: management and the private bank that were part of compliance,
• 5:37
  Speaker 1: part of legal, part of risk. So in that sense, yes. Question,
• 5:42
  Speaker 1: got it, okay. I'd like to get a better sense
• 5:44
  Speaker 1: of Mr. Epstein's relationship with JP Morgan. Mr. Epstein became
• 5:48
  Speaker 1: a JP Morgan client In 1998, correct? Answer, that's my understanding. Question,
• 5:54
  Speaker 1: and he was still a J.P. Morgan client until 2013, correct? Answer,
• 5:59
  Speaker 1: that's my understanding, yes. Question, we understand that Mr. Epstein
• 6:03
  Speaker 1: had personal accounts and business accounts at J.P. Morgan, is
• 6:07
  Speaker 1: that correct? Answer, I believe so. Question, we also understand
• 6:12
  Speaker 1: that Mr. Epstein set up J.P. Morgan accounts for his staff,
• 6:15
  Speaker 1: is that correct? Answer, I was not aware of that,
• 6:17
  Speaker 1: but very possible. I was not involved in his account, so... Question.
• 6:22
  Speaker 1: We also understand that Mr. Epstein set up a J.P.
• 6:25
  Speaker 1: Morgan account for women that he was connected to. Are
• 6:27
  Speaker 1: you aware of that? Answer, no. Question. Who at J.P.
• 6:31
  Speaker 1: Morgan was responsible for servicing Mr. Epstein's accounts? Answer. He
• 6:36
  Speaker 1: had a banking team that I think was led by
• 6:38
  Speaker 1: a gentleman by the name of Paul Morris. Question. Do
• 6:41
  Speaker 1: you remember who else was on the team? Answer, no. Question.
• 6:45
  Speaker 1: What about Justin Nelson, who you referred to earlier? Answer, yeah,
• 6:48
  Speaker 1: I think he was earlier than I think it was
• 6:51
  Speaker 1: Paul Morris. That's my recollection. Question, anyone else? Answer, that's
• 6:55
  Speaker 1: all I recall. Question, what would Paul Barrett's role have
• 6:59
  Speaker 1: been in servicing Mr. Epstein's accounts? Answer, I don't know
• 7:03
  Speaker 1: who Paul Barrett is. Mr. Sullivan, do you mean Morris?
• 7:06
  Speaker 1: Are you thinking Morris? Question, that's my mistake, thank you.
• 7:10
  Speaker 1: What was Paul Morris's role in servicing Mr. Epstein's accounts? Answer,
• 7:14
  Speaker 1: I think he was lead banker for Jeffrey Epstein's accounts. Question,
• 7:17
  Speaker 1: and you said Justin Nelson came before Paul Morris. Is
• 7:20
  Speaker 1: that right? Answer, yeah. Again, I'm not sure. Question, was
• 7:24
  Speaker 1: he also lead banker in servicing Mr. Epstein's accounts? Answer,
• 7:28
  Speaker 1: I believe at one point he was, yes. Question, and
• 7:31
  Speaker 1: you said you don't know who Paul Barrett is. Is
• 7:34
  Speaker 1: that correct? Answer, that's correct. Question, what about Marcus Sheridan? Answer,
• 7:38
  Speaker 1: Mark Sheridan? I recognize the name. Question, but would you know,
• 7:43
  Speaker 1: you don't know what the role would have been? Answer,
• 7:45
  Speaker 1: it was a long time ago. Question, what about Mary Casey? Answer,
• 7:49
  Speaker 1: I think Mary Casey ran one of the banking groups
• 7:52
  Speaker 1: for which Paul Morris was one of the bankers. We
• 7:55
  Speaker 1: were divided by geography, so I wonder, I think Mary
• 7:58
  Speaker 1: Casey ran one of the geographic groups that included Epstein's account. Question,
• 8:04
  Speaker 1: what about Lisa Waters? Answer, my recollection is that Lisa
• 8:07
  Speaker 1: Waters was in compliance, but I'm not sure. Question, when
• 8:12
  Speaker 1: did you first learn that J.P. Morgan had concerns with Mr.
• 8:15
  Speaker 1: Epstein's accounts? Answer, I think there were concerns in 2008, 2006, 2008. Question,
• 8:21
  Speaker 1: 2006 or 2008 is when you first learned that J.P.
• 8:25
  Speaker 1: Morgan had concerns with Epstein's accounts. Answer, well, there was
• 8:29
  Speaker 1: a rapid response meeting, and there was, you can line
• 8:32
  Speaker 1: it up with the date, and I think it was 2006. Question,
• 8:35
  Speaker 1: do you remember whose concern that was? Answer, he was,
• 8:39
  Speaker 1: he was indicted. Question, in 2003, Vanity Fair, published an
• 8:45
  Speaker 1: article on Mr. Epstein titled, The Talented Mr. Epstein. It
• 8:49
  Speaker 1: included the following lines, quote, one young woman recalls being
• 8:52
  Speaker 1: summoned by Ghislaine Maxwell to a concert at Epstein's house,
• 8:56
  Speaker 1: where the woman seemed to outnumber the men by far.
• 9:00
  Speaker 1: These were not women you'd see at Upper East Side dinners,
• 9:03
  Speaker 1: the woman recalls. Many seemed foreign and dressed a little bizarrely.
• 9:08
  Speaker 1: The same guest also attended a cocktail party thrown by
• 9:11
  Speaker 1: Maxwell that Prince Andrew attended in which was filled, she says,
• 9:15
  Speaker 1: with young Russian models. Some of the guests were horrified,
• 9:18
  Speaker 1: the woman says. Do you remember this article being published? Answer, no. Question,
• 9:24
  Speaker 1: I would think that Vanity Fair piece on a client
• 9:25
  Speaker 1: and a friend would be memorable, no? Answer, I mean,
• 9:29
  Speaker 1: you're asking whether I remember the article now. I may
• 9:31
  Speaker 1: have recognized the article then. Question, do you know if
• 9:35
  Speaker 1: anyone at J.P. Morgan was aware of that article? Answer,
• 9:38
  Speaker 1: I don't know. Mr. Sullivan, excuse me, is this 03
• 9:41
  Speaker 1: you said? Redacted, I'm sorry, Mr. Sullivan. Sullivan, 2003. Answer, correct. Question,
• 9:50
  Speaker 1: I would like to introduce as Minority Exhibit M an
• 9:53
  Speaker 1: email between two J.P. Morgan employees, Mary Reith, who is
• 9:58
  Speaker 1: later Mary Casey, and Paul Lahiff. Dated May 21st, 2003.
• 10:02
  Speaker 1: The Bates number is EFTA 02810792. Question in the email, Ms.
• 10:09
  Speaker 1: Wraith tells Mr. Lahiff that she just got the due
• 10:13
  Speaker 1: diligence report on one of Mr. Epstein's companies and notes
• 10:16
  Speaker 1: that she, quote, was waiting to pull everything together before
• 10:20
  Speaker 1: sending down the Vanity Fair article. Why do you think
• 10:23
  Speaker 1: that these J.P. Morgan employees were tracking the Vanity Fair
• 10:26
  Speaker 1: article in the context of a due diligence report? Answer, well,
• 10:30
  Speaker 1: I'd like to read the Vanity Fair article. This was
• 10:32
  Speaker 1: 23 years ago, no, 24 years ago. If there was
• 10:36
  Speaker 1: something negative in that article, then, you know, the bank
• 10:38
  Speaker 1: would want to review it and review the account to
• 10:41
  Speaker 1: make sure that they're comfortable with the client. Question, did J.P.
• 10:45
  Speaker 1: Morgan suspect Mr. Epstein was engaging in sex trafficking as
• 10:48
  Speaker 1: early as 2003? Answer, I don't know. I would doubt it,
• 10:52
  Speaker 1: but I don't know. Question, you would doubt it? Answer,
• 10:56
  Speaker 1: I'm not going to speculate. Question, I would like to
• 10:59
  Speaker 1: introduce as Minority Exhibit N a due diligence report for
• 11:03
  Speaker 1: a checking account that Mr. Epstein asked J.P. Morgan to
• 11:06
  Speaker 1: set up for an unknown woman in 2004. Question, the
• 11:12
  Speaker 1: due diligence report does not list the date of birth
• 11:14
  Speaker 1: for this woman and notes that no government documentation has
• 11:18
  Speaker 1: been provided. The report also states that the social security
• 11:21
  Speaker 1: given could not be confirmed as belonging to the woman.
• 11:25
  Speaker 1: The report acknowledges that no one at J.P. Morgan actually
• 11:28
  Speaker 1: met with this woman and that all the information about
• 11:30
  Speaker 1: her provided by one of Mr. Epstein's advisors, a man
• 11:34
  Speaker 1: named Eric Ganey. Finally, the report notes that the woman
• 11:37
  Speaker 1: is in the U.S. for a modeling work and states, quote,
• 11:40
  Speaker 1: Jeffrey Epstein knows the model personally. Epstein's a longstanding client
• 11:45
  Speaker 1: of J.P.M.P.B. The report also quotes Jeffrey Epstein, often provides
• 11:51
  Speaker 1: support to emerging models. In this case, Redacted has arrived
• 11:54
  Speaker 1: from the Slovak Republic, and Epstein asks us the favor
• 11:58
  Speaker 1: of opening a checking account for her. Would you agree
• 12:01
  Speaker 1: that there are a number of indicators of sex trafficking here? Answer,
• 12:04
  Speaker 1: I think the bank should not be opening an account
• 12:07
  Speaker 1: without doing proper due diligence. Question, what would proper due
• 12:11
  Speaker 1: diligence have looked like here? Answer, knowing who the client is, KYC, AML,
• 12:17
  Speaker 1: anti-money laundering, knowing where the client's origination of wealth comes from,
• 12:21
  Speaker 1: all sorts of issues. But if you have an invalid
• 12:24
  Speaker 1: social security number, that would be a red flag. Question,
• 12:27
  Speaker 1: would you agree? Would you agree that opening this account,
• 12:30
  Speaker 1: strike that, did you ever see this due diligence report? Answer, no. Question,
• 12:34
  Speaker 1: were its contents communicated to you? Answer, no. Question, would
• 12:39
  Speaker 1: you agree that opening this account without the information we discussed?
• 12:43
  Speaker 1: Was a significant failure on JP Morgan's part? Answer, it
• 12:47
  Speaker 1: seems noncompliant, yes. All right, folks, we're going to wrap
• 12:51
  Speaker 1: up right here. And in the next episode dealing with
• 12:53
  Speaker 1: the topic, we're going to pick up with that same year, 2004.
• 12:57
  Speaker 1: All the information that goes with this episode can be
• 12:59
  Speaker 1: found in the description box.