Epstein Files Expose Mandelson's Alleged Political Tip-Offs
Fresh revelations from the Jeffrey Epstein document release have exposed what appears to be a disturbing pattern of privileged information sharing between former Labour minister Peter Mandelson and the convicted sex offender. The latest tranche of files suggests Mandelson provided Epstein with advance notice of two major political events that would significantly impact global financial markets.
The Downing Street Departure Leak
On that fateful Monday morning of 10 May 2010, as Gordon Brown prepared to announce his resignation following a hung parliament election result, Epstein allegedly received an email from Mandelson stating: "Finally got him to go today..." This communication came hours before Brown's dramatic Downing Street announcement, giving Epstein exclusive insight into political developments that would send shockwaves through Westminster and international markets.
The timing proved particularly significant for currency traders. Sterling had already experienced extreme volatility in the lead-up to the 6 May general election, plummeting 2.2% on polling day - its worst single-day performance in over a year. Following Mandelson's apparent tip-off, the pound initially surged more than two cents against the dollar before losing all gains as Brown's resignation and subsequent coalition negotiations created fresh uncertainty.
Eurozone Rescue Plan Intelligence
The Epstein files reveal a second, potentially more damaging alleged leak. During the same critical weekend in May 2010, as European finance ministers scrambled to negotiate a massive rescue package for the struggling eurozone, Epstein reportedly emailed Mandelson seeking confirmation about a rumoured €500bn bailout. The response, attributed to Mandelson, stated: "Sd be announced tonight" followed by "Just leaving No10..will call" when Epstein inquired about his availability.
This information proved remarkably prescient. In the early hours of Monday 10 May, eurozone ministers announced an unprecedented €750bn rescue plan, supplemented by an additional €250bn from the International Monetary Fund. The announcement triggered immediate market reactions, with France's CAC 40 index surging 8.8% that session and the euro experiencing significant early trading volatility.
Market Implications and Trading Windows
Financial analysts have highlighted the distinct trading opportunities these leaks presented. Chris Beauchamp, chief market analyst at IG, noted that while the eurozone bailout information offered "limited time" for trading before official announcement, Mandelson's tip about Brown's resignation came during active market hours. This timing potentially allowed informed traders to position themselves on sterling, government bonds, or FTSE 100 stocks before the political news became public knowledge.
The scale of these markets underscores the seriousness of the allegations. According to Bank of International Settlements data, sterling was the world's fourth most traded currency in 2010, representing one of the largest and most liquid financial markets globally.
Political Fallout and Police Investigation
The revelations have sparked significant political outrage, with Labour leader Keir Starmer requesting police investigation over concerns the leaks contained market-sensitive information. Daniel Bruce, chief executive of Transparency International UK, stated: "If proven, the allegations as reported would amount to a serious abuse of entrusted power at the heart of government during a national crisis."
Bruce emphasised the need for thorough examination of potential offences under both the Bribery Act and common law misconduct in public office provisions. He added: "With public trust in politics at historic lows, government needs to act decisively to rebuild confidence."
The allegations emerge against the backdrop of the 2008 financial crisis and subsequent eurozone sovereign debt turmoil, which created lucrative opportunities for well-informed traders. While there is no evidence that anyone traded on these specific leaks, the documents paint a troubling picture of privileged information flow during critical moments of political and economic instability.
