Fallout in the U.K. over the Epstein files

0:00Today on State of the World, Fallout in the UK over the Epstein files.

0:09You're listening to State of the World from NPR. We bring you the day's most vital international stories, up close where they're happening. It's Tuesday, February 3rd. I'm Greg Dixon. The late convicted sex offender Jeffrey Epstein continues to cause political turmoil in the United States as the U.S. government releases documents related to his case implicating the rich and powerful. Meanwhile, in the United Kingdom, the consequences of being named in the Epstein files are more concrete. It has brought down a British prince, and now a lord. Jeffrey Epstein's photos and emails had already prompted King Charles to strip his brother Andrew of his title of prince.

0:50And now they've caused one of Britain's most well-known politicians, Peter Mandelson, to step down from the House of Lords. NPR's Lauren Freyer in London tells us more. When the latest Epstein files came out, tax attorney Dan Needle was curious. More than 5 ,000 files are labeled Mandelson. That's Peter Mandelson, advisor to several prime ministers over the years. Nicknamed Prince of Darkness for his Machiavellian spin doctor reputation. He was the United Kingdom's ambassador to the Trump administration, before resigning last year over his friendship with Epstein. Needle encountered him while working on bank bailouts after the 2008 financial crisis.

1:29I was looking specifically at emails around that time because Peter Mandelson was business secretary. Epstein obviously had an interest, and I wondered what we'd find. What he found were records of then-Cabinet Secretary Mandelson forwarding sensitive government information to Epstein, often within moments of receiving it himself. He received the email. Four seconds later, bam, went to Epstein. And Epstein would reply sometimes with questions, often quite technical, and Mandelson would help him out. Not only did Mandelson forward British government emails, he also forwarded notes from private meetings with American officials and advised Epstein on how to help an American bank CEO lobby against Mandelson's own government.

2:12At one point, when they're discussing some new bank taxation in the UK, Epstein asked whether J.P. Morgan, J.B. Diamond personally, should be calling the British Chancellor of the Exchequer, the British finance minister, directly. And Mandelson says yes and mildly threaten. So in other words... A British cabinet minister advised a foreign bank to threaten his own government. Police are now investigating whether that was criminal. There are also photos of Mandelson in his underwear at Epstein's house and records of payments from Epstein to Mandelson and his husband, which Needle says may violate tax law if they were gifts, not loans.

2:53It is so tawdry. And just you lose all faith, don't you, in any of them. That's talk radio personality Nick Ferrari on his LBC call-in show today. With every release, these Epstein files are fueling anger over what many Brits see as a rotten nexus of politicians, bankers, royals and elites. Mandelson's former colleagues in the ruling Labour Party have been falling over themselves to denounce him. MP Emily Thornberry spoke to the BBC. It was treacherous. It was the most appalling behaviour. I'm really profoundly distressed by it. In Parliament, opposition lawmakers are asking how much Prime Minister Keir Starmer knew and still named Mandelson ambassador a little over a year ago.

3:38Here's Stephen Flynn from the Scottish National Party. And I cannot understand why half an hour ago, the Prime Minister of the United Kingdom did not just apologise for his decision-making. As Starmer began drafting legislation to kick Mandelson out of the upper House of Parliament, where he was still known as Lord Mandelson, The Speaker of that chamber, Lord Forsyth, beat him to it. The Clerk of the Parliament has today received notification from Lord Mandelson of his intention to retire from the House. Mandelson once famously called himself a fighter, not a quitter. But over the weekend, he quit the Labour Party and apologized to Epstein's victims, but said he had no recollection of payments from him.

4:22Mandelson quit the House of Lords, one of the last positions he held. Lauren Frayer, NPR News, London.

4:34That's the State of the World from NPR. Thanks for listening.