Mandelson seemingly suggested bank boss should 'mildly threaten' chancellorpublished at 15:17 GMT

15:17 GMT

Faisal Islam
Economics editor

Image source, Getty Images

For a decade and a half, I have wondered about a private conversation I had with the late Alistair Darling, chancellor under Gordon Brown, about the financial crisis.

Darling told me about a painful and angry telephone conversation he had with Jamie Dimon, chief executive of US banking giant JP Morgan, at the end of 2009 when the UK government announced plans to tax bankers' bonuses.

Some of it had been reported at the time, such as a threat to pull plans for JP Morgan's massive new headquarters in the UK.

But - to my utter astonishment - details of the background and the context to this call appear to be in the Epstein files released on Friday, and appear to have involved the unlikely combination of Peter Mandelson, Jeffrey Epstein and the suggestion of "mild threats" over the bonus tax.

Mandelson, then business secretary, seemingly suggested that Dimon should threaten Darling mildly over the tax.

Image source, US Department of Justice

In 2011, Darling told me something more about the call. Dimon had raised the fact that JP Morgan was one of the biggest purchasers of UK government debt, leaving the clear suggestion in Darling's mind that America's biggest bank could effectively stop lending to Britain.

While Darling refused to cave, he did recall that a number of bankers rang him up with what seemed like a script to complain about the bonus tax, urging a U-turn.

Mandelson has been approached for comment. He has previously told the BBC that every UK and international bank was making the same argument about the impact of the bonus tax on financial services.

• Read more: Faisal Islam on Dimon's call to Darling

There's plenty of political sensitivity here for Starmerpublished at 14:51 GMT

14:51 GMT

Henry Zeffman
Chief political correspondent

Last night Lord Mandelson was able to resign from the Labour Party - the institution with which he’s been intertwined throughout his life.

Today, the Labour government are trying to signal that Mandelson probably would have been kicked out anyway, and that they would like to find ways to punish him further.

All this is designed to ensure that Starmer and his team do not look like they are racing to catch up with public opinion on Mandelson.

That is also why Darren Jones, a senior cabinet minister, is proactively coming to the Commons this afternoon to speak about the issue rather than the government risking looking like a minister is being dragged before MPs to answer questions.

Still, there is clearly plenty of political sensitivity for Starmer here.

He appointed Mandelson as his ambassador to the US, eschewing recent tradition by opting for a politician over a career diplomat.

It was a matter of public record at the time of his appointment that Mandelson had had some relationship with Epstein after his conviction, though the prime minister says it was only subsequently that he became aware of the full extent of it.

What is a little harder to define is how influential Mandelson has been over many leading figures on the right of the Labour Party. He has at times had close links, performing almost a mentorship role, with some of Starmer’s Downing Street advisers, including Morgan McSweeney, the prime minister’s chief of staff.

That makes dealing with the political fallout from these latest disclosures even messier for Starmer.

Gabriela Pomeroy
Live reporter

Image source, US Department of Justice

We're continuing to go through the millions of pages of documents released by the US Department of Justice on Friday, as well as bringing you the reaction to what they contain. Here's the latest:

From the files: Emails from 2009 suggest Mandelson forwarded internal government information to Epstein when he was Gordon Brown's business secretary, and that he tried to change government policy on a planned tax on bankers' bonuses following a request from Epstein.

Opposition calls for an investigation: Tory Party leader Kemi Badenoch earlier called for a "full Cabinet Office investigation" into whether Mandelson and his husband accepted money from Epstein during his time as a minister. The SNP also called for an investigation. The Green Party has accused Labour of breaking its manifesto by not removing Mandelson from the Lords, and the Lib Dems have also called on Mandelson to be stripped of his peerage.

Mandelson 'should not be member of the Lords': That's the prime minister's view, according to a Downing Street spokesman. But officials say removing him with legislation would be complex.

Starmer has also asked the cabinet secretary to "urgently" review all available information on contact between the former minister and Epstein, No 10 said.

What Mandelson has said: Mandelson says his conversations in government about bankers' bonuses "reflected the views of the sector as a whole not a single individual".

In his letter resigning from the Labour Party last night, he said he had "no record or recollection" of receiving financial payments from Epstein - adding he believed the allegations are false and "need investigating by me".

On the picture above, Mandelson has said he "cannot place the location or the woman and I cannot think what the circumstances were".

Being named or pictured in the files is not an indication of wrongdoing.

Senior cabinet minister Darren Jones will make a statement in the Commons later today addressing the release of the latest Epstein files by the US Department of Justice on Friday.

The exact timings are flexible and depend on how quickly MPs get through other items scheduled beforehand.

Our current best guess is that the statement is unlikely before 16:30 GMT, but we'll keep you updated.

Thomas Mackintosh
Live reporter

The files show emails sent in September 2011 to Jeffrey Epstein from a redacted email address. The messages came three years after Epstein was convicted of sex crimes.

One message is signed off by "Sarah" and mentions "The Duke". The sender congratulates Epstein on the apparent birth of a child:

"Don't know if you are still on this bbm [BlackBerry Messenger] but heard from The Duke that you have had a baby boy," the first email says.

"Even though you never kept in touch, I still am here with love, friendship and congratualtions [sic] on your baby boy. Sarah xx."

A follow-up message is then sent to Epstein eight minutes later.

"You have disappeared," the email says. "I did not even know you were having a baby. It was sooooo crystal clear to me that you were only friends with me to get to Andrew. And that really hurt me deeeply. More than you will know."

It has never been publicly confirmed that Epstein had children.

The BBC has contacted Sarah Ferguson’s spokesperson for a response. Ferguson – the ex-wife of Andrew Mountbatten-Windsor, the former Duke of York - is yet to comment on the latest batch of Epstein files.

Her spokesperson previously said she regretted any association with Epstein when news emerged of Ferguson calling Epstein her "supreme friend".

Harry Farley
Political correspondent

Government officials believe stripping Lord Mandelson of his title through introducing legislation would be complicated and lengthy.

There has not been a precedent for using a bill to remove peerages for more than a 100 years.

Instead the prime minister believes a quicker and simpler route would be for the House of Lords to work with the government to reform its disciplinary processes.

One route could be via the Lords’ Conduct Committee with a speedy resolution being seen as a priority.

Harry Farley
Political correspondent

The prime minister has ordered an “urgent" investigation into Peter Mandelson’s contact with Jeffrey Epstein while the peer was a government minister, Downing Street has said.

The review will be carried out by the Cabinet Secretary and will look at “all available information”, No 10 has said.

But Downing Street said the prime minister did not have the power to directly remove Mandelson’s title.

“The prime minister has asked for this to be urgently looked at and the prime minister believes that Peter Mandelson should not be a member of the House of Lords," a spokesman said.

“However the prime minister does not have the power to remove [his peerage].

“He is calling on those in the Lords to work with the government to modernise disciplinary procedures in the House to allow for the easier removal of Lords who have brought the House into disrepute.

“The prime minister has asked the Cabinet Secretary to review all available information regarding Peter Mandelson’s contacts with Jeffrey Epstein during his period as a government minister and to report back to him."

Starmer's spokesperson added that if Mandelson has information then he should be prepared to testify in front of US Congress.

“The prime minister has always said that anyone who has got information should be prepared to share that information,” the Downing Street spokesman said. "You cannot be victim centred if you are not prepared to do that."

Jack Fenwick
Political correspondent

Image source, Getty Images

Emails released in the Epstein files suggest that Lord Mandelson forwarded internal government information to Jeffrey Epstein when he was Gordon Brown's business secretary and de facto deputy prime minister.

In June 2009 Gordon Brown's policy adviser Nick Butler wrote an email to the prime minister about the UK's struggling economy, in which he advocated "releasing value from the very substantial asset base which the Government holds" and suggesting the government came up with an "asset sales plan".

Butler copied in several people, including Peter Mandelson, and newly released emails indicate that Mandelson then forwarded that email on to Epstein, with the message: "Interesting note that's gone to the PM".

In response to Epstein asking, "what salable [sic] assets?", a reply from a redacted email address said: “Land, property I guess."

A further internal government email, which Mandelson was copied into, was also forwarded to Epstein in August 2009, but it's not clear who forwarded that email to the disgraced financier.

In the August 2009 email, then-government business minister Shriti Vadera discussed how to improve financial markets in the wake of the crash and suggested providing funds to struggling companies in exchange for a share of ownership.

Mandelson has been approached for comment.

Keir Starmer believes Peter Mandelson "should not be a member of the House of Lords" and has asked the Cabinet Secretary to "urgently" review all available information on contact between the former minister and Jeffrey Epstein, Downing Street says.

Jennifer McKiernan
Political reporter

An apparent email exchange between Peter Mandelson and Jeffrey Epstein shows the depth of the pair’s relationship in 2010.

A few weeks before his autobiography was published, Mandelson seemingly sent text of what appears to be an introduction from that book to Epstein.

The convicted sex offender sent feedback saying what he did and didn’t like.

Mandelson apparently responded: “So if I re-do the beginning, you like the rest?”

Image source, US Department of Justice

Disciplinary action against Peter Mandelson was "under way prior to his resignation", says a Labour Party spokesperson.

The spokesperson says: “It is right that Peter Mandelson is no longer a member of the Labour Party."

“Jeffrey Epstein’s heinous crimes destroyed the lives of so many women and girls, and our thoughts remain with his victims,” the spokesperson adds.

As a reminder, Mandelson resigned from the party last night, saying he didn't want to "cause further embarrassment" over his links to convicted sex offender Jeffrey Epstein.

Epstein seemed to lean on his royal connectionspublished at 12:16 GMT

12:16 GMT

Sean Coughlan
Royal correspondent

What seems shocking is how much Epstein seems to have used his royal connections almost as personal playthings.

“I will be having dinner at Buckingham Palace tomorrow evening, want to join?” he said, in an email to an unidentified friend in September 2010.

He seemed to be comfortable in issuing the invitations, sounding as though he owned the place.

There’s another exchange with Andrew about a dinner at the Palace.

“What time and how many?” replies Andrew to Epstein, again suggesting how much Epstein was calling the shots.

Balmoral and Windsor Castle were visited by Epstein and in the case of Sandringham, Epstein was able to land his private jet on a nearby RAF base.

Thomas Mackintosh
Live reporter

Image source, US Department of Justice

September cache of emails: Peter Mandelson was fired from his role as the UK's ambassador to the US in September. That came after emails emerged showing supportive messages he had sent to Epstein after the American was convicted in 2008 for soliciting prostitution from a minor. The government said the emails showed Mandelson's relationship with Epstein was "materially different" from what was known when he was given the job.

The "birthday book": In other files released in September, Mandelson called Epstein his "best pal", according to a letter in an alleged "birthday book".A spokesperson for Mandelson told the BBC at the time he had long been clear that he "very much regrets ever having been introduced to Epstein".

Epstein friendship "a terrible mistake": Last month, Mandelson told the BBC he never saw girls at Epstein's properties; the next day, heoffered a personal apology to the victims of Epstein over his decision to maintain the friendship after his conviction.

Documents suggest Epstein payments: Late on Friday, the US government dropped more than three million Epstein files - among the latest included bank statements appearing to show Epstein sending three separate payments to accounts connected to Mandelson. The former ambassador said he had no record or recollection of receiving the sums and did not know whether the documents were authentic.

A redacted picture: Separately, images of Mandelson in his underwear were also uncovered in the latest tranche of Epstein files. In one of the redacted pictures, he is seen standing next to a female, whose face is not visible. Mandelson has said he "cannot place the location or the woman and I cannot think what the circumstances were".

Image source, Reuters

US Deputy Attorney General Todd Blanche says there are a "small number of documents" left to be released and the justice department is waiting for a judge's approval.

But the justice department's own review of the documents is over, he told ABC on Sunday.

On Friday, he said the new tranche of documents "marks the end of a very comprehensive document identification and review process".

However, Democrats continue to argue that the department has withheld too many documents – possibly around two-and-a-half million – without proper justification.

The DoJ has been under heavy scrutiny after missing the 19 December deadline to release all files as mandated in the Epstein Files Transparency Act, which passed Congress and was signed into law in November.

But whether this saga is over remains to be seen.

Image source, PA Media

Political pressure continues to mount on the government as opposition leaders demand a "full investigation" into Peter Mandelson's role in Labour governments.

Conservative Party leader Kemi Badenoch is calling for a "full Cabinet Office investigation" into whether Mandelson and his husband accepted money from Epstein during his time as a minister.

Leader of the Liberal Democrats Ed Davey says the government should strip Mandelson of his peerage. "It's the very least they can do for the victims and survivors of his friend Jeffrey Epstein," Davey says.

The SNP's Westminster leader Stephen Flynn has asked the government for a "full investigation" into Mandelson's role in Labour governments, the PA news agency reports.

Earlier, Badenoch also urged the government to "set out how exactly [Mandelson] came to be appointed [as UK ambassador to the US] in the first place".

For context, Mandelson was sacked as the UK's ambassador to the US last year because of his past connections to Epstein. He was appointed to the House of Lords in 2008.

Green Party leader Zack Polanski has accused Labour of breaking its manifesto, which included a commitment to "[strengthen] circumstances in which disgraced members can be removed".

In a post shared on X, he has attached a photo of Labour's 2024 manifesto, external, which says the party will "ensure all peers meet the high standards the public expect of them".

"Blink and you miss it - another Labour manifesto promise broken," Polanski writes.

Image source, Labour Party

Mandelson was appointed to the House of Lords in 2008. He has been on a leave of absence from the Lords for more than a year, which he took after he was appointed US ambassador. That means he cannot take part in proceedings by speaking or voting.

• It's very unlikely Lord Mandelson's title will be revoked, our chief political correspondent says

Images of Peter Mandelson have also been uncovered in the latest tranche of Epstein files.

In a redacted picture, he is seen standing next to a female, whose face is not visible.

He has said he "cannot place the location or the woman and I cannot think what the circumstances were".

It is not known when or where the images of Mandelson and the female were taken.

Being named or pictured in the files is not an indication of wrongdoing.

Image source, PA/US Department of Justice

Image source, UK Parliament

Peter Mandelson has been on a leave of absence from the House of Lords for more than year, which he took after he was appointed US ambassador. He was sacked from that role back in September, after a cache of emails revealed further information about his relationship with Jeffrey Epstein.

Mandelson has now also resigned from the Labour Party over his relationship with the late sex offender, but some of the party's MPs are calling for him to go one step further and give up his peerage (our political correspondent explained earlier how this process works).

"[He] embarrassed the Labour Party, he's embarrassed the prime minister, and he's embarrassing to himself to be honest," says Jo White, a Labour MP and leader of the Red Wall group.

She tells BBC Radio 4's Today programme that she believes Mandelson should've resigned from the party much earlier than he did.

Asked if the former ambassador should be barred from sitting in the Lords, White says: "I think he'd immediately know that he was not welcome. Labour lords would be extremely angry."

Image source, Reuters

President Trump says he plans to sue comedian Trevor Noah, after the comedian implied that Trump had been to Jeffrey Epstein's island during the Grammy Awards last night,

After the award for Song of the Year was announced, Noah said: "Wow, that is a Grammy that every artist wants. Almost as much as Trump wants Greenland. Which make sense, because [now] Epstein's island is gone he needs a new one to hang out with Bill Clinton."

Trump responds on Truth Social:

"Noah said, INCORRECTLY about me, that Donald Trump and Bill Clinton spent time on Epstein Island.

"WRONG!!! I can’t speak for Bill, but I have never been to Epstein Island, nor anywhere close, and until tonight’s false and defamatory statement, have never been accused of being there, not even by the Fake News Media.

"Noah, a total loser, better get his facts straight, and get them straight fast. It looks like I’ll be sending my lawyers to sue this poor, pathetic, talentless, dope of an M.C., and suing him for plenty$."

Bill Clintonhas never been accused of wrongdoing by survivors of Epstein's abuse, and has denied knowledge of his sex offending.

Trump was a friend of Epstein's for years, but the president has said they fell out in about 2004 - years before Epstein was first arrested.

Could Mandelson be removed from House of Lords?published at 08:43 GMT

08:43 GMT

Henry Zeffman
Chief political correspondent

It is very unlikely that Lord Mandelson’s peerage, his title, will be revoked.

To do so, the government would have to propose and pass a piece of legislation specifically to remove his peerage.

Mandelson is currently on a leave of absence from the Lords, which he took when he became ambassador to the US a year ago. That means he cannot take part in proceedings by speaking or voting.

Members of the Lords on a leave of absence have to give three months’ notice that they intend to return.

When the next parliamentary session begins in May, Mandelson will have to decide whether to apply for another leave of absence or come to Parliament to swear an oath to the King.

If he does neither then he would automatically retire from the House of Lords at the end of that session, about a year later.

He could also choose to retire from the Lords at any time.

Retirement would mean he had no option to come back to the Lords in the future — but he would still retain his title as a lord.