Liberal Democrats Demand FCA Investigation into Peter Mandelson Over Epstein Links
The Liberal Democrats have formally called upon the UK's financial regulator to launch an immediate investigation into Peter Mandelson, the former business secretary, over allegations he leaked highly confidential government information to the disgraced financier Jeffrey Epstein. This action, they argue, may have facilitated insider trading and provided an unfair advantage in financial markets.
Details of the Allegations and Political Fallout
In a letter addressed to Nikhil Rathi, the chief executive of the Financial Conduct Authority (FCA), Daisy Cooper, the MP for St Albans and deputy leader of the Liberal Democrats, emphasised the critical need to determine whether Mandelson or his associates profited from accessing market-sensitive material. Cooper stated that the sharing of such confidential information with a private financier like Epstein could have led to lucrative gains in the aftermath of the 2008 financial crisis, potentially violating trading laws.
"Mandelson could also have personally profited from this arrangement," Cooper asserted in the letter, which has been seen by the Guardian. "He and others must face criminal prosecution if they are found to have abused trading laws for financial benefit." Insider dealing is a serious criminal offence in the UK, carrying penalties of up to 10 years in prison for recent offences, or up to seven years for those committed before November 2021.
Evidence from Epstein Files and Market Impact
The call for an FCA probe follows the release of emails from the latest tranche of Epstein files, which appear to show Mandelson providing Epstein with advance notice of market-moving events while serving as business secretary under Prime Minister Gordon Brown. These emails, sent hours before public announcements in May 2010, reportedly included sensitive information on fiscal and political developments, such as Brown's resignation and a €500 billion eurozone rescue deal.
Both events significantly influenced stock and currency prices, including the British pound, during a period of global market instability following the 2008 financial crisis. Cooper, who also serves as the Lib Dems' Treasury spokesperson, highlighted additional emails from June 2009, where Mandelson allegedly forwarded a confidential document to Epstein outlining policy options to bolster UK public finances, including the sale of £20 billion in assets.
Furthermore, Cooper pointed to an exchange in which Mandelson seemingly advised Epstein that Jamie Dimon, the CEO of JP Morgan, should "threaten" the Treasury over plans to tax bankers' bonuses in December 2009. These revelations have caused significant shockwaves in Westminster, leading to Mandelson's resignation from the Labour party on Sunday and his subsequent resignation from the House of Lords on Tuesday.
Criminal Investigation and Regulatory Response
The Metropolitan Police have already initiated a criminal investigation into Mandelson over allegations he leaked market-sensitive emails to Epstein, who died in prison in 2019 while awaiting trial on child sex-trafficking charges. Cooper's letter stresses that no individual, regardless of their former office, should be allowed to compromise the integrity of the UK's financial system by treating state information as a private commodity.
"I therefore urge the FCA to launch an immediate investigation into whether Peter Mandelson's actions constitute a criminal offence under insider trading laws," Cooper wrote. "The victims who suffered such awful abuse at the hands of Jeffrey Epstein deserve to know the full scope of the financier and his network's crimes."
In response, an FCA spokesperson stated that it would not be appropriate to comment further, given the ongoing police investigation. Mandelson was approached for comment but has not publicly responded to the allegations.
