Peter Mandelson, formerly Lord Mandelson, was arrested by British police in a dramatic raid on his home in Camden, North London.
Mandelson, who was stripped of his position in the House of Lords earlier this month by the British government, was arrested on suspicion of misconduct in public office.
The allegations surround his ties to Jewish billionaire and convicted pedophile Jeffrey Epstein. Mandelson is believed to have passed on market sensitive government information to Epstein.
Misconduct in public office is a charge that carries a potential punishment of life in prison.
He was right at the very top of the British political establishment, the Labour wing of that, and a man who was extremely comfortable with billionaires, accepting their largesse, It now turns out, in return for very serious and almost certainly criminal favors, in return.
For a man who shared these secrets with Epstein, he held other very responsible positions at the top of the British government.
Mick Napier, Political Analyst
Mandelson held a number of government positions in his career, as well as earning a reputation as a skilled media manipulator under Tony Blair; he also held close ties to other Jewish oligarchs, like the powerful Rothschild family.
There are fears that the arrest of Mandelson is merely designed to placate the masses while protecting the far more powerful figures implicated in the Epstein scandal.
This is a man who has been through several scandals.
He's always bounced back from previous, you know, previously having been kicked out of government, but this time, it's inconceivable.
He's been cast into utter darkness by the people who enabled him for a very long time and who hope that the scandal will stop with him.
But it's very, very serious indeed, and giving away government secrets to a billionaire who could profit from them; very serious indeed.
Mick Napier, Political Analyst
Peter Mandelson has since been released on bail, meaning that police are still investigating the allegations.
Wherever this investigation leads, questions about Mandelson's relationship and that of the Western elite, with Epstein will continue to rage.