The Liberal Democrats have called on the UK’s financial watchdog to immediately investigate Peter Mandelson, warning that his alleged sharing of confidential government information with Jeffrey Epstein may have led to insider trading during the financial crisis.
In a letter to Financial Conduct Authority (FCA), chief executive Nikhil Rathi, Liberal Democrat deputy leader Daisy Cooper said it was “crucial” to establish whether Mandelson, or those he shared information with, profited from access to “market-sensitive and confidential material”.
The intervention follows the release of emails in the latest tranche of Epstein files which appear to show Mandelson, while serving as business secretary under Gordon Brown, gave Epstein advance notice of major fiscal and political developments.
These included details of a €500bn eurozone rescue package and Brown’s impending resignation in 2010, information that moved currencies and equity markets at a volatile moment for the global economy.
Cooper said the apparent sharing of such material “could easily have provided an unfair and lucrative advantage in the financial markets”, either to Epstein himself or to associates.
She added that Mandelson “could also have personally profited”, and said criminal prosecution should follow if trading laws were breached.
Insider dealing carries penalties of up to 10 years in prison under UK law.
Police investigation under way
The letter to the FCA comes alongside a criminal investigation by the Met Police, which is examining allegations that Mandelson leaked market-sensitive information to Epstein at the height of the crisis.
Police have confirmed they are reviewing multiple reports relating to possible misconduct in public office.
Mandelson has denied wrongdoing but has resigned from the House of Lords and left the Labour Party following the disclosures.
He was removed as UK ambassador to the US last year after fresh questions emerged over the depth of his relationship with Epstein, who died in prison in 2019 while awaiting trial on sex-trafficking charges.
Among the emails cited by critics are messages in which Mandelson appears to forward a confidential Treasury document outlining £20bn of potential asset sales in 2009, and another in which he suggests the then JPMorgan chief executive Jamie Dimon should “mildly threaten” the government over a proposed bankers’ bonus tax.
JPMorgan has not been accused of any wrongdoing.
A spokesperson for the FCA said: “The Metropolitan Police has already announced a criminal investigation. It wouldn’t be appropriate to comment any further.”
