US regulators are increasing their scrutiny of the largest banks. Just ask JP Morgan, as they have been probing accusations that these four banks might have helped the late financier Jeffrey Epstein’s criminal enterprises. Epstein died in prison in July 2019 while awaiting trial on child sex trafficking charges. He was one of the most connected figures in financial circles, known for winning large transactions from big banks.
Before the cutoff in 2013, Epstein was one of JP Morgan’s most profitable clients. He had more than a billion dollars of transactions processed on his behalf before the bank kicked him off. According to news reports, Epstein was able to walk into any JP Morgan branch and withdraw up to $50 million in cash at the bank’s disposal. Recent revelations about Epstein’s access to banking services are raising serious questions. Finally, they call on financial institutions to do their part by overseeing and reporting on potential illicit behavior.
The investigation comes as the US Justice Department prepares to release all unclassified records related to Epstein and Ghislaine Maxwell within 30 days. This release will include, as their most recent release, over a million pages of emails and documents created and exchanged during the investigation into Epstein’s case. Given the depth of information provided, one would expect there to be significant findings as to how Epstein was able to keep his financial operations afloat.
So far, regulators have given outward signals that they are treating these allegations seriously. Jonathan Gould, a spokesperson for the Office of the Comptroller of the Currency, stated, “While it would be inappropriate to comment on any specific ongoing supervisory matter, I take very seriously any allegations of wrongdoing or abuse by banks and bank executives.”
Former CEO of Barclays Jes Staley is said to have made moves to protect Epstein’s access to the global banking system. This makes the issue all the more complicated as Staley was at JP Morgan during the early 2000s. Staley has since been banned from the UK banking sector for concealing his relationship with Epstein.
It’s what US Senator Elizabeth Warren has been passionately calling for independent investigations. She wants to put on trial the executives who she says helped Epstein evade detection for his crimes. In doing so, she’s called attention to JP Morgan’s deeper banking engagement with Epstein. Further, she is calling on CEO Jamie Dimon to testify before the US Senate banking committee.
“They opened about 134 different accounts for Jeffrey Epstein over these years. They did more than a billion dollars in transactions for Jeffrey Epstein … He literally could walk into the bank and get $50m from JP Morgan Chase.” – Elizabeth Warren
In her statement accompanying the introduction, Warren said that those who helped Epstein run his enterprises should be held accountable. She pressured these banking officials, including Dimon, to testify under oath. She needs them to lead to the financial paper trail that allowed Epstein to flourish for so long.
“So, what I’d like to do, over on the banking committee, is I’d like to have Mr. Dimon and some of those other bankers come in and, under oath, testify about exactly what the financial trail is that kept Jeffrey Epstein afloat for so long.” – Elizabeth Warren
The reach of this investigation goes further than pointing fingers at the individuals to blame. If investigations find banks that helped enable Epstein did anything criminally negligent, they may have to pay large settlements. They could be barred from future participation in the US banking system.
In response to the allegations above, a spokesperson for JP Morgan told us that… They argued that there was “no evidence” proving Jamie Dimon himself ever had any direct interaction with Epstein. Their spokesperson added that Jamie never had any contact with Epstein. Likewise, he never talked to him, emailed with him, or had any role in making decisions about his account, as he testified under oath. Our pandemic response discovery case involves more than a million pages of emails and other documents. Not a one of them proposes anything to the contrary.
While investigators are still conducting their inquiries, regulators have already begun to act. First and foremost, they are dedicated — as are their colleagues at the U.S.
“Regulators need to investigate and hold accountable Epstein’s enablers – and I’ll believe they’re taking action when I see it. Americans deserve to know that their banking system isn’t facilitating the disturbing crimes of the rich and powerful.” – Elizabeth Warren
Regulatory bodies and lawmakers are currently working hand-in-hand to expose the breadth of Epstein’s complex web of financial transactions. Their latest inquiries have focused on possible complicity by large banking institutions. As more data is introduced through upcoming public disclosures, advocates, investors, decision makers, and the general public will be closely watching what happens next.