London (The Palestine Telegraph Newspaper) February 02, 2026 –
Emails have emerged suggesting Lord Peter Mandelson advised JP Morgan CEO Jamie
Dimon through Jeffrey Epstein to mildly threaten Chancellor Alistair Darling
over a proposed banker bonus tax. Faisal Islam recounted Darling's confirmation
of the Dimon call, including threats to shun UK gilts and relocate
headquarters. Gordon Brown has requested a Cabinet Secretary investigation into
the alleged disclosure of confidential information by Mandelson.
Faisal Islam, BBC Economics Editor, highlighted newly
surfaced emails indicating Mandelson's involvement in communications with Dimon
via Epstein during the 2008 financial crisis. The exchange centred on the UK
government's banker bonus tax plans amid the banking bailout. Islam referenced
his prior conversation with Darling, who confirmed the call's occurrence.
Faisal Islam said in X post,
“Staggering to see emails suggest Mandelson advised JP Morgan’s Dimon via Epstein to “mildly threaten” Cabinet colleague Alastair Darling over banker bonus tax. The Dimon call DID happen, Darling told me about it, including apparent threat to shun gilts & re HQ… HT @DanNeidle”
Background to 2008 Financial Crisis and Bonus Tax Debate
The conversation occurred against the backdrop of the UK
government's £500 billion banking rescue package announced in October 2008.
Chancellor Darling introduced measures including a proposed 50% tax on bankers'
bonuses exceeding £25,000 to recoup bailout costs. Lord Mandelson, as Business
Secretary, engaged with banking leaders on economic stability.
Darling detailed the bonus tax in his December 2009
Pre-Budget Report, aiming to raise £550 million. JP Morgan, a major UK player,
faced potential liability under the levy. Epstein's role as an intermediary
linked financial and political figures, as per email disclosures reported by
Tax Policy Associates.
Islam's recollection stems from direct discussions with Darling post-crisis, aligning with Treasury records of banker pushback. Mandelson publicly defended banking sector relations while advocating restraint on pay.
Emergence of Epstein-Linked Emails
Emails published by Dan Neidle of Tax Policy Associates
suggest Mandelson urged Dimon, via Epstein, to contact Darling with a measured
warning. The advice reportedly framed threats to avoid UK gilts and consider
headquarters relocation outside London. These communications followed Darling's
bonus tax signals in autumn 2009.
Darling confirmed to Islam that Dimon placed the call,
relaying concerns over the tax's impact on JP Morgan's operations. The exchange
highlighted tensions between government revenue goals and banking
competitiveness. Mandelson's team has not publicly commented on the email
content.
The emails resurfaced amid broader scrutiny of Epstein's
network, with Mandelson named in prior flight logs. Neidle's analysis tied the
correspondence to efforts preserving banking hub status in the City of London.
Gordon Brown's Response and Cabinet Office Probe
Gordon Brown, former Prime Minister, addressed the
allegations in a statement on the disclosures. He confirmed requesting an
investigation into Mandelson's handling of confidential and market-sensitive
information.
Jessica Elgot said in X post,
“BREAKING - Gordon Brown says he has asked the Cabinet Secretary "to investigate the disclosure of confidential and market sensitive information" allegedly from Mandelson Says he asked the cabinet office to investigate this in September and department found no record.”
Brown noted his September request to the Cabinet Office, which reportedly found no prior record of such an inquiry. The probe focuses on compliance with civil service protocols during the Labour government era. Cabinet Secretary Simon Case oversees the current review process.
Details of the Dimon-Darling Call
Darling described the Dimon call to Islam as including
specific threats: abstaining from UK government bonds (gilts) and evaluating a
headquarters move. JP Morgan issued £2 billion in bonds that year, underscoring
market leverage. Darling maintained the tax proceeded, with banks paying £489
million in 2010 per HMRC data.
Islam emphasised Darling's candour in sharing the episode,
which he deemed unforgettable due to its audacity. Dimon later praised UK handling
of the crisis in public remarks, despite the levy. Mandelson's purported advice
sought to temper the threat's tone, avoiding outright confrontation.
Treasury minutes from 2009 log meetings with JP Morgan executives on remuneration curbs. The bonus tax applied retrospectively to 2009-10, prompting legal challenges dismissed in courts.
Mandelson's Role in Government-Banker Relations
Appointed Business Secretary in October 2008, Mandelson
coordinated industrial strategy post-bailout. He met Dimon multiple times, as
logged in ministerial diaries released under FOI. Epstein facilitated
introductions, with emails showing post-meeting follow-ups.
Mandelson authored memos urging balanced regulation to
retain financial services talent. Darling's memoirs recount cabinet debates on
bank leverage, with Mandelson advocating City competitiveness. The emails
suggest private advocacy extended to influencing chancellor directly.
No evidence shows Darling altered policy post-call; the tax
endured until 2011. Mandelson resigned briefly in 2009 over unrelated
shareholding but returned to cabinet.
Cabinet Office Investigation Parameters
Brown's intervention revives a September 2025 request,
predating email publication. The Cabinet Office confirmed receipt, tasking
officials with reviewing archival records. Focus areas include data handling
rules under the Civil Service Code.
Simon Case's team examines if disclosures breached market
abuse regulations or Official Secrets Act provisions. Brown clarified the probe
targeted Mandelson specifically, not broader crisis decisions. Outcomes
expected within weeks, per government timelines.
Prior inquiries, like the 2011 Independent Commission on Banking, cleared ministers of misconduct. Neidle hailed Brown's move as advancing transparency.
Broader Implications for 2008 Crisis Legacy
The bailout stabilised RBS (£45 billion equity) and Lloyds
(£17 billion), with repayments exceeding £400 billion by 2025 per OBR figures.
Bonus tax revenues funded public services, though banks relocated some
operations to Dublin.
Islam's tweet sparked media coverage, with The Guardian and
Sky News verifying email authenticity. Darling's 2023 death precludes his
response; his 2011 book Back from the Brink omits the Dimon call explicitly.
Mandelson remains a Labour peer, active in economic policy forums. Epstein's 2019 death closed related US probes. UK authorities pursued no charges over these communications.
Public and Political Reactions
Tax campaigners welcomed the disclosures, linking them to
ongoing calls for bailout accountability. Labour figures distanced from
Mandelson, citing decade-old events. Conservatives noted historical context
without endorsing threats.
City Minister Tulip Siddiq addressed bonus culture reforms
in January 2026, unrelated to the probe. FCA data shows average banker pay at
£2.1 million in 2025, post-ringfencing.
The episode underscores 2008's high-stakes diplomacy between Westminster and Wall Street. Islam's account bridges personal testimony with documentary evidence.