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An investigation is underway following allegations that Lord Peter Mandelson shared market-sensitive information with the late financier Jeffrey Epstein, who was a known sex offender.
Documents released by the U.S. Department of Justice suggest that Lord Mandelson provided this information to Epstein while serving as Business Secretary under Gordon Brown during the 2008 financial crisis and its aftermath.
After an initial review of the documents, the Cabinet Office forwarded them to the police, noting that they likely contained market-sensitive information and that official handling protocols had been breached.
The Metropolitan Police is anticipated to announce that Lord Mandelson is under investigation for suspected misconduct in public office, according to a report by The Times.
In a related development, former Prime Minister Gordon Brown has contacted Metropolitan Police Commissioner Sir Mark Rowley, providing details pertinent to the investigation into Lord Mandelson’s disclosure of confidential government information.
Sir Keir told Cabinet earlier on Tuesday that he was ‘appalled’ by the revelations and the apparent forwarding of sensitive internal discussions about the Credit Crunch was ‘disgraceful’.
The Prime Minister warned ministers that although Lord Mandelson’s behaviour was ‘gobsmacking’ he was ‘not reassured the totality of the information had yet emerged’.
Sir Keir also said he would act ‘legislatively if necessary’ to remove Lord Mandelson from the Upper House. A law was being drafted that could also strip his title, with ‘nothing off the table’.
Lord Mandelson is now intending to retire from the House, but will still be able to refer to himself as ‘Lord’ unless legislation is passed. A No 10 spokesman said it was ‘right’ that he was leaving.
A criminal investigation has been launched into allegations Lord Peter Mandelson passed market-sensitive information to paedophile financier Jeffrey Epstein
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein
On May 10, 2010 Lord Mandelson seemingly messaged Epstein about the EU’s plan for a 500billion euro bailout of the single currency
It comes after the former Cabinet minister finally quit Labour on Monday, with Sir Keir Starmer branded ‘weak’ for failing to kick Lord Mandelson out of the party earlier over his links to the notorious paedophile.
But the storm over a huge tranche of documents released by the US administration last week shows no sign of dissipating.
Gordon Brown has demanded a Cabinet Office probe into the ‘wholly unacceptable’ disclosure of details of his government’s desperate response to the Credit Crunch.
The ex-prime minister revealed he asked No10 for a probe last September – but after two months was told no evidence could be found.
The new US material includes emails apparently forwarded to the paedophile financier by Lord Mandelson in 2009, in which key Downing Street aides and ministers discussed the UK’s resilience to the Credit Crunch crisis and what government assets might be ‘saleable’.
Other documents seemingly show Lord Mandelson – who was Business Secretary at the time – advising Epstein how he and his powerful friends could lobby against a bankers’ bonus tax.
In May 2010 – after the election but before the Coalition government took over – Lord Mandelson appeared to give Epstein advance notice of a €500billion bailout of the Euro.
What looks to be bank records from 2003 and 2004 suggest that Epstein wired the New Labour architect tens of thousands of pounds – although Lord Mandelson has said he believes they are fake.
The Tories demanded a further probe into Lord Mandelson’s conduct while US ambassador to review what information was shared with private companies, including Palantir.
Lord Mandelson brokered a meeting between Sir Keir Starmer and the tech firm in February last year.
The Conservatives also want the Government to publish documents related to its vetting of Lord Mandelson prior to his appointment as US ambassador by Sir Keir.
Documents from the release appear to show Lord Mandelson suggesting to Epstein in 2009 that he would lobby the UK government over a levy on bankers’ bonuses.
The so-called ‘super tax’ was introduced in December 2009 by then-chancellor Alistair Darling in the wake of the huge bailouts for banks.
An email dated December 15, 2009, which appears to be from Epstein, reads: ‘any real chance of making the tax only on the cash portion of the bankers bonus’.
The reply, apparently from Lord Mandelson, reads: ‘Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.’
Two days later, an email discussion indicates Lord Mandelson encouraged JP Morgan’s boss Jamie Dimon to call Mr Darling and ‘mildly threaten’ him.
The tranche of documents includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having ‘saleable’ assetsÂ
The 2009 memo highlighted that the government was looking to get investment movingÂ
The memo made clear that the government was looking to sell off assets to avoid tax hikesÂ
Peter Mandelson in photo relased as part of the Jeffery Epstein-related files by US Justice
A photograph released as part of the Epstein files apparently shows Lord Mandelson talking to a woman who is wearing a white bath robe
In an email to Lord Mandelson, Epstein wrote ‘should Jamie call Darling one more time’ with an apparent reply – with the sender’s email redacted – saying: ‘Yes and mildly threaten.’
Mr Darling has since died, but wrote about a conversation with Mr Dimon in his book about the financial crisis: ‘Mr Dimon was very, very angry.. he said that his bank bought a lot of UK debt and he wondered if that was now such a good idea.
‘I pointed out that they bought our debt because it was a good business deal for them.
‘He went on to say they were thinking of building a new office in London but they had to reconsider that now.’
The bonus tax stayed in place despite the lobbying.