The Governor of the Bank of England, Andrew Bailey, said he was “shocked” by reports that former business secretary Lord Mandelson leaked sensitive government information to Jeffrey Epstein during the 2008 financial crisis. Bailey said it was appropriate that police are now investigating the matter, stressing that legal safeguards exist to prevent the misuse of market-sensitive data.
Speaking while paying tribute to the late former chancellor Alistair Darling, Bailey drew a stark contrast between Darling’s conduct during the financial meltdown and the alleged actions of Mandelson. “Alistair Darling was doing all the right things,” Bailey said. “He was doing them with a thorough sense of integrity, and he can’t speak for himself today, sadly.” Darling passed away in November 2023 at the age of 70.
Bailey appeared visibly emotional as he reflected on images of Darling working through the crisis, emphasizing that the focus must remain on Epstein’s victims. “How is it that we live in a society that this happened and was allowed to happen?” he asked.
The allegations against Mandelson relate to reports that he kept Epstein informed about the Labour government’s decision to cap bankers’ bonuses following the financial crash. Mandelson is also said to have attempted to persuade the Treasury to abandon the policy. These disclosures have prompted a police investigation into whether confidential government information was improperly shared.
When asked whether there are sufficient safeguards to prevent officials from misusing sensitive information, Bailey said there is a “very clear” legal framework to deal with breaches, adding that law enforcement involvement is the proper route.
Bailey’s remarks follow heightened scrutiny of senior figures in both finance and government over links to Epstein. The Bank of England governor previously faced attention over his role as head of the Financial Conduct Authority during the investigation of Jes Staley, former Barclays chief executive, regarding his relationship with the disgraced financier.
Staley challenged the FCA’s decision to ban him from senior roles in the financial sector, but the court upheld the regulator’s finding that he acted without integrity by misleading it about his connections to Epstein. While the ban remained in place, the court reduced the financial penalty imposed on him. That case involved emails between Staley and Epstein that later became public, intensifying concerns over accountability at the highest levels of finance and government.
Bailey said the priority must remain addressing the harm suffered by Epstein’s victims, rather than focusing on the reputations of those implicated. “I was shocked by what we heard about that period,” he said, stressing the need for transparency and justice in light of the revelations.
The investigation into Mandelson adds to the ongoing scrutiny of historical ties between Epstein and senior figures in both government and finance, raising broader questions about conduct and accountability during one of the most severe financial crises in modern UK history.
