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What does the Mandelson Epstein scandal tell us about the City, politics and power?
Feb 5, 2026
The extent of Peter Mendelson's business dealings with the sex offender Jeffrey Epstein is starting to become clear. It's sordid, shameful and illuminating.
Christian May explains the scale of the scandal in this episode of the Week in Business.
#news #politics #uknews #mandelson #business
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0:00
Sex and money and power and influence.
0:03
Only the one story in town this week and
0:05
it isn't pretty. The extent of Peter
0:07
Mandlesson's business dealings with the
0:08
sex offender Jeffrey Epstein is starting
0:10
to become clear. It's sorted, shameful,
0:13
and illuminating. Brace yourselves. It's
0:15
the week in business with me, Christian
0:17
May.
0:21
Peter Mandlesson, once a towering figure
0:23
in Labor, in the government, and in the
0:25
city, has fallen. He is now the subject
0:28
of a police investigation into
0:29
allegations of misconduct in public
0:31
office after thousands of emails
0:33
contained in the latest Epstein files
0:35
released by the US Department of Justice
0:37
reveal that he basically lived a double
0:40
life. Mandles was always controversial
0:42
to say the least. But he was also
0:44
talented and that's why a struggling
0:46
Gordon Brown brought him back into the
0:48
fold in 2008 making him a lord and
0:51
ultimately creating the title of first
0:53
secretary of state. Mandlesson also
0:55
served as business secretary and was by
0:57
all accounts a central figure in
0:59
discussions about Downing Street's
1:01
response to the global financial crisis
1:03
and subsequent Eurozone crisis. We now
1:06
know that throughout this time serving
1:08
his country, he was in regular and
1:10
intimate contact with Jeffrey Epstein, a
1:12
man who was convicted in 2008, the same
1:15
year Mandlesson entered the House of
1:17
Lords for child sex offenses.
1:20
The revelations which have been on our
1:22
front page every day this week show that
1:24
Mandlesson appeared to routinely share
1:27
with the convicted pedophile sensitive
1:29
information from the heart of Downing
1:31
Street while serving as a senior
1:34
government minister. There's a word for
1:36
that. Mandles allegedly shared with
1:38
Epstein details of a highly sensitive
1:40
government policy to sell off public
1:42
assets for billions of pounds.
1:44
information relating to possible
1:45
corporate tax changes and information
1:47
highly market sensitive information
1:50
about the Eurozone crisis of 2010.
1:53
Remember Epstein was a financier. He had
1:55
rich clients all over the world.
1:56
Mandlesson was just one contact, an
1:58
intimate one, but just one of a web of
2:01
people to whom such information might
2:03
have been highly valuable. Mandlesson
2:05
also kept Epstein right in the loop
2:07
about life in Gordon Brown's Downing
2:10
Street and routinely discussed the
2:11
prospects of ousting the PM. The day
2:14
before Gordon Brown resigned, Mandolson
2:16
emailed Epstein saying, "Finally got him
2:18
to go." No wonder Labour figures from
2:21
Gordon Brown down are furious with what
2:23
they describe as Mandolen's total
2:26
betrayal of his party, his government,
2:29
and his country. The political fallout
2:31
here in the UK is not yet clear. Akir
2:34
Stalmer is seriously wounded by his
2:37
massive error of judgment in appointing
2:39
Mandolson as our ambassador to
2:41
Washington. In Westminster, the sharks
2:44
are circling. But away from the
2:46
politics, what have we learned about
2:47
Mandlesson's sprawling business and
2:50
financial interests at City AM? We have
2:53
gone through hundreds and hundreds of
2:56
emails between Mandlesen and Epstein
2:58
over the past few days. It's offered us
3:01
a glimpse, not a full picture, but a
3:03
glimpse of that double life Mandelen was
3:06
leading whilst serving in government.
3:08
But it also shines a light on what
3:09
happened when he left government in 2010
3:12
and set about acquiring wealth and
3:15
building businesses and positions.
3:17
Mandlesson clearly leans on Epstein for
3:19
advice and guidance as he tries to build
3:21
a career after Labour lost the 2010
3:24
election. The emails make this clear.
3:26
Mandles wants introductions. He wants
3:28
connections. He wants guidance on which
3:30
board positions to accept and how much
3:32
he should be paid. Epstein holds his
3:34
hand through all of this. And the sense
3:35
I got reading these emails wasn't just
3:37
that Mandlesson needed advice from
3:39
Epstein. It's that he needed his
3:41
approval. He appeared to crave it. When
3:43
Mandlesson tells Epste he's in
3:45
discussions about a million-doll
3:46
advisory role at Deutsche Bank, Epstein
3:49
replies, "Well done." To which
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Mandlesson says, "Is that all you have
3:52
to say?" What about, "Well done, Pety.
3:54
Good job, Pety." Epste obliges and says,
3:57
"Okay, okay, okay. Well done, Pety. Good
4:00
job, Pety." before telling him to aim
4:02
higher. After all, million dollars is
4:05
peanuts to Epstein. The dead pedophile
4:08
was clearly an important figure in the
4:09
earliest days of Mandlesen launching his
4:11
own business, Global Council, now a
4:13
major city firm. Mandlesson asks for
4:16
client introductions, shares feedback on
4:18
the business plan, discusses clients in
4:20
Russia and China, and keeps Epstein in
4:22
the loop with business developments.
4:24
Global Council is busy trying to sever
4:26
all ties with Mandlesson.
4:28
Understandably, telling us yesterday
4:30
that we are only now being made aware of
4:32
the full extent of Mandlesson's conduct.
4:36
Mandlesson clearly wanted money, power,
4:38
and influence. And it seems the
4:40
relationship with Jeffrey Epstein, a
4:42
convicted child sex offender since 2008,
4:45
helped him gain all three. What did
4:48
Epstein get? tidbits of information,
4:50
political gossip, the inside track, the
4:52
friendship and gratitude of for a while
4:54
at least one of the top figures in the
4:56
British government. There's a telling
4:58
exchange in 2012 by which time
5:01
Mandlesson had established his city
5:02
career. In which Epstein emails him and
5:05
says, I am disappointed in what appears
5:07
to be a one-way street. Jeffrey, can I
5:09
have Jeffrey? Can you give? Jeffrey, can
5:11
you organize? You have yet to offer real
5:13
assistance. Mandlesson appears hurt by
5:16
this. And then there's the Sidi side of
5:19
things. Emails from, to or about Peter
5:22
Mandelson that I won't quote here.
5:24
Banter, innuendo, inappropriate jokes.
5:26
It's all there along with emails that
5:28
hint at infidelity, sexual tastes,
5:31
liaison, marital problems. They discuss
5:34
it all. But the common thread, the
5:36
foundation stone is money. That's what
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it all boils down to. Epstein had it.
5:41
Mandolson wanted it. And between them,
5:43
they enjoyed it. There is much more to
5:45
come. We will get sight of the
5:47
government documents relating to
5:48
Mandlesson's appointment as US
5:50
ambassador and we will undoubtedly get
5:52
more emails released by the US
5:54
Department of Justice and some people
5:56
are now calling for the European Union
5:57
to investigate Mandlesson's time as the
6:00
EU's trade commissioner. There is also
6:02
of course an active police
6:04
investigation. It all amounts to the
6:06
most squalid, brazen, and outrageous
6:09
scandal that I can recall in two decades
6:11
working in Westminster and the city and
6:13
seven years in financial journalism.
6:16
That's it from me this week. Do stay up
6:19
to date and in the know on the
6:21
Mandlesson scandal and everything else
6:23
on the city app, city cam.com and I will
6:26
see you next week.
#News