WSJ What’s News – How Europe Is Investigating the Epstein Files

Date: February 20, 2026
Host: Luke Vargas
Guest: Matthew Dalton (Paris Correspondent), Alex Franko (Journal Finance Editor), Quintin Webb (Deputy Finance Editor)

Episode Overview

This episode provides an in-depth look at how European authorities are actively investigating the newly released Jeffrey Epstein files, in contrast to the comparatively muted response from US officials. The podcast also covers turmoil in private credit markets, trends in corporate board diversity, and a brief segment on President Trump’s order to release government files on UFOs in the wake of comments from former President Obama.

Key Discussion Points & Insights

1. Private Credit Markets Show Stress

• Blue Owl Capital’s Redemption Freeze: Blue Owl Capital blocked investor withdrawals, spurring comparisons with the pre-2008 financial crisis. This action has heightened investor concerns and prompted calls for greater oversight.
  • Alex Franko (01:52):

    “Blue Owl is an asset manager. They go out and raise money from investors and invest in making loans to junk rated companies that pay really high interest... in the last few months it's really not very hot, partly because a lot of the loans were going to software companies and now people are worried about AI affecting the prospects for those companies.”

• Market Impact: Despite these credit worries, the broader stock market remains at record highs.

2. White House Pushes to Curb Investor-Owned Housing

• New proposal aims to prevent investors owning more than 100 single-family homes from acquiring additional properties, potentially affecting hundreds of investment firms (02:30).
• A special bonus housing market episode was announced for later in the day.

3. Corporate Board Diversity Trends Reverse

• S&P 500 appointments of women and minority directors have declined to levels seen 10 years ago.
• Only a quarter of S&P 500 firms maintained a diversity policy in the last year (03:13).

4. US Economic Data & Fed Policy Outlook

• PCE Price Index:
  • Quintin Webb (04:30):

    “We're looking for a rate of about 3% on a core basis... the Fed this last mile of getting back down towards the 2% level which they target over time is proving pretty difficult, right?”

• Growth Remains Strong:
  • US economic growth remains robust, buoyed by AI investment and forthcoming tax cuts.
  • Quintin Webb (06:04):

    “The economy is running hot at the moment and we're going to see the kind of effects of big tax cuts coming in in the next few months as well. So that is likely to kind of add further fuel to this.”

Deep Dive: Europe’s Investigations into Epstein Files

[Main Segment Begins: 07:07]

A. Transatlantic Rift in Approaches

• The release of millions of Epstein-related files has prompted European prosecutors to pursue fresh inquiries, while US authorities assert nothing warrants new prosecution.
  • Luke Vargas (07:07):

    “The recent release of millions of files relating to convicted sex offender Jeffrey Epstein is highlighting a transatlantic rift, with European authorities finding plenty to investigate, while US Officials maintain that there's nothing warranting further prosecution.”

B. Notable European Investigations and Arrests

• Former Prince Andrew (UK): Arrested for misconduct in public office relating to Epstein (07:21–08:00).
• Norwegian Case:
  • Former PM Thobjorn Jagland charged with corruption after alleged favors and gifts from Epstein (08:33).
• France:

  • New investigations opened; Epstein had deep links to French elite and properties.

  • Former Culture Minister Jack Lang is under investigation over alleged funds received from Epstein (08:33).

  • Allegations of sexual assault and rape among French associates of Epstein are also being examined.

  • Matthew Dalton (08:33, on France):

    “Epstein spent a lot of time [in France]... the former Culture Minister, Jack Lang, is under investigation for fudge funds that he may have accepted from Epstein starting in 2012. So that's the first shoe to drop, I would say. And we'll see whether the French investigation leads to charges being filed against other people.”

C. Human Trafficking Investigations in Eastern Europe

• Lithuanian and Latvian Authorities:

  • Examining whether their citizens were trafficked by Epstein or his associates to Western Europe or the US (10:05).

  • Limited details are available, but these countries, along with France, are scrutinizing the new files for trafficking evidence.

  • Matthew Dalton (10:05):

    “Epstein is known to have looked at a number of Eastern European countries for recruits for his... massages. So the government's authorities in Lithuania and Latvia are looking into whether their citizens were trafficked by Epstein and by his associates…”

D. Legal and Cultural Differences: US vs. Europe

• Legal Hurdles:
  • Statutes of limitations and loss of evidence complicate prosecutions, and key figures like Epstein and Jean-Luc Brunel are deceased (07:46).
• US Response:
  • DOJ states there's no US equivalent to UK “misconduct in public office.”
  • US prosecutors are typically less independent, often requiring clearance from higher-ups, especially for cases involving the politically connected.
• European Independence:
  • European prosecutors often act more independently, allowing for the pursuit of sensitive or high-profile cases, even involving government figures.
  • Matthew Dalton (10:56):

    “European officials and prosecutors tend to be more independent than their counterparts in the US who are under the oversight of the Justice Department. And so they may have more latitude to bring investigations against high profile people who have ties to the government.”

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|----------------|-------------------------------------------------------------------------------------------------------------------------------| | 01:52 | Alex Franko | “Blue Owl is an asset manager…invest in making loans to junk rated companies that pay really high interest…not very hot now.” | | 08:33 | Matthew Dalton | “France is a place where Epstein spent a lot of time…former Culture Minister Jack Lang is under investigation…” | | 10:05 | Matthew Dalton | “Epstein is known to have looked at a number of Eastern European countries for recruits…authorities in Lithuania and Latvia…” | | 10:56 | Matthew Dalton | “European officials and prosecutors tend to be more independent…may have more latitude to bring investigations…” |

Timeline: Important Segments

• 00:33–02:30: Private credit market worries and asset manager Blue Owl Capital segment
• 03:13–04:30: Corporate board diversity data
• 04:30–06:16: US economic data preview with Quintin Webb
• 07:07–11:36: Deep dive into European investigations into the Epstein files (with Matthew Dalton)
• 12:00: Brief: US files on UFOs and government response

Conclusion

This WSJ episode paints a vivid picture of why the Epstein case remains live and controversial in Europe—owing to investigative independence, different prosecutorial thresholds, and ongoing political will to revisit powerful elites’ alleged misconduct. The US, in contrast, is portrayed as institutionally and legally more constrained in re-examining the case.
Other news items in markets, housing, and diversity round out the episode, making it a snapshot of intersecting developments affecting business, politics, and justice on both sides of the Atlantic.