The UK’s Financial Conduct Authority (FCA) has been urged by the Liberal Democrats to investigate Peter Mandelson over allegations he leaked confidential government information to Jeffrey Epstein, potentially facilitating insider trading.
Mandelson Under Scrutiny
Daisy Cooper, the Lib Dems’ deputy leader and MP for St Albans, formally requested the investigation in a letter to Nikhil Rathi, the FCA’s chief executive. Cooper stated it is “crucial” to determine if Mandelson, or anyone he shared information with, financially benefited from access to “market-sensitive and confidential material” following the 2008 financial crisis.
The call for investigation follows the release of emails suggesting Mandelson, while serving as Business Secretary under Prime Minister Gordon Brown, provided Epstein with advance notice of significant market events. These included Brown’s impending resignation and a €500bn eurozone rescue deal, information revealed in the latest tranche of Epstein files.
According to the letter, these events, communicated to Epstein hours before public announcements in May 2010, demonstrably impacted stock and currency prices, including the British pound. Cooper also highlighted emails indicating Mandelson shared a confidential document with Epstein in June 2009, detailing potential strategies to bolster the UK’s public finances, including the sale of £20bn in assets.
Allegations and Resignations
The Liberal Democrats’ concerns extend to an exchange where Mandelson allegedly advised Epstein to have the JP Morgan chief executive “threaten” the Treasury regarding plans to tax bankers’ bonuses in December 2009. These revelations have prompted significant repercussions, including Mandelson’s resignation from the Labour party on Sunday and from the House of Lords on Tuesday.
A criminal investigation into Mandelson has already been launched by the Metropolitan police, focusing on the alleged leaks of market-sensitive emails to Epstein, who died in prison in 2019 while awaiting trial on child sex-trafficking charges. The FCA has stated it will not comment further due to the ongoing police investigation.
Frequently Asked Questions
What prompted the Liberal Democrats to call for an FCA investigation?
The Liberal Democrats urged the FCA to investigate following the release of emails suggesting Peter Mandelson leaked confidential government information to Jeffrey Epstein, potentially enabling insider trading.
What specific information is alleged to have been leaked?
Emails suggest Mandelson provided Epstein with advance warning of events including Gordon Brown’s resignation and a €500bn eurozone rescue deal, as well as details of policy options regarding UK public finances.
What is the potential penalty for insider dealing in the UK?
The harshest penalty for insider dealing in the UK is 10 years in jail, or up to seven years for offenses committed before November 1, 2021.
Given the ongoing investigations, what role do you believe transparency plays in maintaining public trust in government and financial institutions?
