Mandelson Urged JP Morgan to Pressure UK Treasury Over Banker Tax
Lord Peter Mandelson, while serving as business secretary under Labour governments, told Jeffrey Epstein that the chief executive of banking giant JP Morgan should "mildly threaten" the UK Treasury over a proposed supertax on banker bonuses. This revelation comes from the latest release of Epstein files by the US Department of Justice, shedding light on behind-the-scenes lobbying efforts during the financial crisis era.
Details of the Tax and Lobbying Efforts
The levy in question was introduced in the aftermath of the financial crisis, imposing an additional 50 per cent tax rate on bonuses exceeding £25,000. In the week following Chancellor Alistair Darling's announcement of these measures, Epstein contacted Mandelson, suggesting there might be "any real chance of making the tax only on the cash portion of the bankers bonus."
Mandelson, who was forced to resign as British ambassador to the United States last year due to his connections with Epstein, responded that he was "trying hard to amend" the policy but noted the Treasury was "digging in." Days later, when Epstein inquired whether Jamie Dimon, JP Morgan's CEO, should call Darling again, Mandelson explicitly advised, "Yes and mildly threaten."
Mandelson's Ties to JP Morgan and Epstein
Despite these lobbying attempts, Darling proceeded with the tax, which ultimately collected more than £2 billion from the banking industry. JP Morgan was among the clients of Epstein's advisory firm, Global Counsel, established after Mandelson left government in 2010. On Christmas Day in 2010, Mandelson messaged Epstein about his firm's relationship with JP Morgan, stating, "If I am going to do something for JPM, it should be a discreet Global Counsel project, something that does not directly compromise my Lazard relationship and which also does not trample on Tony (Blair's) territory."
Former Prime Minister Tony Blair had served as a paid adviser to Dimon at JP Morgan since 2008. Mandelson further revealed his ambitions, writing, "My aim is to acquire enough knowledge and networks in time to participate in real deals."
Recent Fallout and Political Implications
This latest disclosure follows Lord Mandelson's recent resignation from the Labour Party on Monday, a move aimed at avoiding "further embarrassment" due to his links to Epstein. In his letter to Labour's general secretary, he expressed regret, saying, "I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this."
JP Morgan has declined to comment on these allegations, leaving the financial and political communities to ponder the implications of such high-level lobbying during a critical period in UK economic policy.
