Bank of England governor Andrew Bailey yesterday made an emotional intervention in the Epstein scandal by expressing his shock at the ‘cover-up’ and ‘lies’.
In a rare excursion away from the world of finance and economics, Mr Bailey made clear his dismay over the latest revelations about Epstein and his relationship with Lord Mandelson – and fury at the betrayal of former Chancellor Alistair Darling.
Mr Bailey said: ‘I am shocked by what we’re hearing. How is it that we live in a society in which this happened and the cover-up happened as well? That is a very fundamental question that we have to ask ourselves.’
And Mr Bailey struggled to contain his anger over Mandelson’s betrayal of the late Mr Darling during the 2009 financial crisis, when the then-Chancellor was being lobbied furiously by banks over his plans to curb bankers’ bonuses.
Emails appear to show Mandelson suggesting to Epstein that JP Morgan boss Jamie Dimon should call Mr Darling and ‘mildly threaten’ him. Mr Darling later revealed he did indeed receive an angry phone call from Mr Dimon.
Mr Bailey said: ‘There are times in which… lobbying happens, which has ethics attached to it, which I do find shocking frankly.’
Shock: Bank of England governor Andrew Bailey (pictured) has made clear his dismay over the latest revelations about Epstein and his relationship with Lord Mandelson
The governor, who was at the Bank of England in a more junior role at the time, was barely able to contain his feelings as he spoke about the role played by Mr Darling – who died in 2023 and was widely admired for his role steering the UK through the crisis.
Mr Bailey said: ‘I was very much involved in the financial sector measures.
‘To see those pictures of Peter Mandelson with Alistair Darling… Alistair Darling was doing all the right things and he was doing them, in my view – I knew him very well – with a thorough sense of honesty and decency.’
His voice cracking with emotion, Mr Bailey added: ‘He can’t speak for himself today, sadly.’
The unexpected intervention during a question and answer session over the Bank’s latest interest rate decision laid bare the genuine shock and disgust felt by many at the highest echelons of power over the scandal.
Mr Bailey had previously had to look into the fall-out from the Epstein affair when he was head of the Financial Conduct Authority (FCA) and the watchdog investigated Barclays boss Jes Staley’s relationship with the paedophile.
Mr Staley ultimately quit Barclays and was fined by the FCA for misleading it over the relationship. Last year, Mr Bailey was a witness at a tribunal where Mr Staley appealed the penalty.
Yesterday he said: ‘Around a year ago I had to go and give evidence in a legal case involving this whole issue dating back to my time at the FCA.
‘It was having to push back on the lies that we were being told consistently.’
Mr Bailey was also asked about revelations that Mandelson disclosed inside information from the heart of government to Epstein – potentially allowing him to make millions.
The Labour peer, while deputy prime minister, appeared to have given the financier advanced warning in May 2010 about both a €500billion euro bailout and the timing of Gordon Brown’s departure from Downing Street.
Mr Bailey said: ‘There is a very very clear and unambiguous legal framework in this country for dealing with market-sensitive information. The most appropriate thing is that this matter is now in the hands of the police.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.