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The largest U.S. bank also concluded a confidential settlement with Jes Staley, a former private banking chief who had close ties to Epstein and was held responsible by JPMorgan for retaining him as a client.
Both settlements come just four weeks before the scheduled trial date, effectively bringing an end to a year-long scandal that has cast a shadow over JPMorgan.
These settlements mark the final stages of major litigation surrounding Epstein’s sexual abuse of women, which has ensnared prominent individuals, including Britain’s Prince Andrew and influential figures in the business world.
Lawsuits against JPMorgan had raised questions about the bank’s client oversight, with allegations that it ignored red flags and internal warnings regarding Epstein, including concerns related to the money he purportedly withdrew to pay young women and teenage girls.
Epstein had been a client of JPMorgan from 1998 until his dismissal in 2013.
In a statement, JPMorgan expressed deep regret over any association with Epstein and emphasized that it would not have continued doing business with him if it had believed he was exploiting the bank for his criminal activities.
Supporting Charitable Causes and Combating Human Trafficking
Under the terms of the settlement with the U.S. Virgin Islands, JPMorgan will pay $30 million to support charitable organizations, $25 million to combat human trafficking, and $20 million to cover the territory’s legal fees. It’s important to note that the bank did not admit to wrongdoing. In June, JPMorgan had already agreed to pay $290 million to settle separate claims made by dozens of Epstein’s accusers.
Ariel Smith, the Attorney General of the U.S. Virgin Islands, described the settlement as a “historic victory for survivors and state enforcement.” She stressed the importance of the settlement in highlighting the responsibilities of banks under the law to detect and prevent human trafficking.
Staley’s Settlement and Departure from JPMorgan
Jes Staley, the former private banking chief and close associate of Epstein, also reached a confidential settlement with JPMorgan. Staley had left the bank in 2013, just before Epstein’s dismissal, and subsequently served as the CEO of Barclays (BARC.L) for six years. He expressed regret for his friendship with Epstein and denied any knowledge of his sex trafficking activities.
JPMorgan had sought to hold Staley accountable for its losses in two other lawsuits and demanded the forfeiture of eight years of his pay.
Background on the Epstein Scandal
Jeffrey Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges. The medical examiner ruled his death a suicide.
The U.S. Virgin Islands had initially sought at least $190 million from JPMorgan, accusing the bank of overlooking warning signs related to Epstein’s misconduct, even after his 2006 arrest on prostitution charges and subsequent guilty plea.
JPMorgan, in turn, contended that the U.S. Virgin Islands shared responsibility for the situation, alleging that they provided tax incentives and waived monitoring requirements in exchange for financial contributions and gifts to local officials.
The bank’s association with Epstein had created a rare public relations challenge for Jamie Dimon, the CEO of JPMorgan since 2006, who testified that he had little knowledge of Epstein until his arrest in July 2019.
Other prominent figures, such as Leon Black, the billionaire co-founder of Apollo Global Management (APO.N), and Deutsche Bank (DBKGn.DE), where Epstein was a client from 2013 to 2018, also reached settlements with Epstein’s accusers earlier this year.
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