Lord Peter Mandelson’s political career appears to be over after fresh releases from the Epstein files revealed the depth of his friendship with the paedophile financier.
The Labour veteran, 72, was sacked from his US ambassadorial role in September last year due to his ties with Epstein.
Lord Mandelson’s name has appeared in some of the more than three million pages related to Epstein in the latest release by the US Department of Justice.
He has resigned from the Labour Party to avoid causing “further embarrassment” – and also succumbed to pressure on 3 February to step down from the House of Lords.
A criminal investigation has also been launched into allegations that he leaked market-sensitive information to Epstein when he was business secretary.
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The emails appeared to show conversations between the pair about political matters while Lord Mandelson was serving as business secretary and the de-facto deputy prime minister in 2009, in Gordon Brown’s government.
Documents indicate Epstein was sent internal discussions from the heart of the UK government after the global financial crisis.
That includes emails in which Lord Mandelson may have given Epstein advance notice of a €500bn EU bank bailout in 2010 – something that could have been used by someone to gain an advantage in the financial markets.
He was emailed by Epstein, who wrote: “Sources tell me 500 b euro bailout , almost complete [sic].”
He then appears to reply: “Sd be announced tonight”.
Epstein then asks if he is home, to which Mandelson replies: “Just leaving No10… will call.”
The €500bn deal was approved the next day as governments tried to pull the euro currency out of a crisis.
Bankers’ bonuses policy
Other emails appear to show Lord Mandelson telling Epstein he was “trying hard” to change policy on bankers’ bonuses at his request. This was just three months after the American had given his husband money.
In emails in December 2009, Lord Mandelson appears to agree to try to change government policy on taxing the bonuses.
Coming 18 months after the financial crash and subsequent state rescue of banks, the subject was highly contentious.
On 9 December 2009, the then-chancellor Alistair Darling announced a 50% “super tax” on bonuses, intended to prevent pay being inflated by taxpayer-funded bailouts.
In an email exchange on 15 December, Epstein asked Lord Mandelson if the policy could be changed: “any [sic] real chance of making the tax only on the cash portion of the bankers bonus,” he wrote.
Lord Mandelson replied: “Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.”
Epstein responds: “let me know before jes please,,”.
“Ok. They are not being helpful…” is the reply.
“they jpm. or they treasury,” asks Epstein.
“Treasury” Mandelson replied.
“Jes” may be a reference to Jes Staley, the former Barclays boss, who in 2009 was head of JP Morgan’s investment bank and a close associate of Epstein’s.
The Metropolitan Police has said it’s received “a number of reports relating to alleged misconduct in a public office” following the release of these latest files.
Underwear photos
Images in the file drop also show Lord Mandelson in his underwear, talking to a woman wearing a bathrobe.
There are several versions of essentially the same image.
A spokesperson for Lord Mandelson told Sky News: “No one can say who or where the photo was taken.
“Lord Mandelson has absolutely no idea or indeed whether it has any connection to Epstein at all.”
Sky News investigations have determined these pictures were taken at Epstein’s Paris apartment.
Payments from Epstein
The latest documents suggest Epstein paid Mandelson $75,000 (£55,000) between 2003 and 2004.
Apparent bank statements record three payments of $25,000, two of which went to accounts apparently naming Lord Mandelson as the holder, with the other going to his partner, Reinaldo Avila da Silva, listing Lord Mandelson as a beneficiary.
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It’s unclear if the payments ever made it to the accounts, and Mandelson said he had “no record and recollection of ever receiving these sums” and would be doing his own investigations.
Lord Mandelson has also said in a statement: “I was wrong to believe Epstein following his conviction and to continue my association with him afterwards.
“I apologise unequivocally for doing so to the women and girls who suffered.”
Epstein ‘sent course money to Mandelson’s husband’
In 2009, Epstein appears to have sent thousands of pounds to Lord Mandelson’s husband to help pay for osteopathy course fees.
Mr Avila da Silva sent Epstein an email in September that year about “my osteo course expenses, incl fee, anatomical models, lap top if you can help me with this”.
He said the annual fee was £3,225 and thanked Epstein for “anything you can help me with”.
Epstein replied the same day: “I will wire your loan amount immediated’y. [sic]”
In a later email, Mr Avila da Silva followed up “regarding the £10,000 with my personal bank details” and asked “if this amount includes my school fees or if the amount of £3,225 (school fee) will be sent directly to the school itself”.
Epstein told him: “includedd. [sic]”
Mr Avila da Silva later sent him another message confirming receipt of the cash: “Just a brief note to thank you for the money which arrived in my account this morning.”
Lord Mandelson’s representatives have been contacted for comment.
He has previously said: “I was wrong to believe Epstein following his conviction [in 2008 for procuring a child for prostitution and of soliciting a prostitute] and to continue my association with him afterwards. I apologise unequivocally for doing so to the women and girls who suffered.”
And in an interview with The Times carried, Lord Mandelson referred to a “handful of misguided historical emails, which I deeply regret sending”.
On other claims, Lord Mandelson questioned the authenticity of the documents, citing false claims he had a US social security number, questionable US-dollar cheque payments into UK banks, incorrect beneficiary details, and multiple basic errors in dates, spelling and formatting.
