How Europe Is Investigating the Epstein Files

Summary

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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)

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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.

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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.”

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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.”

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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…” |

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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

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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.

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Transcript

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[Luke Vargas]

Jitters in private credit markets prompt comparisons to the run up to the financial crisis. Plus we'll look at how Europe is leading investigations related to Jeffrey Epstein.

[Matthew Dalton]

European officials and prosecutors tend to be more independent than their counterparts in the US and so they may have more latitude to bring investigations against high profile people who have ties to the government.

[Luke Vargas]

And President Trump orders the release of Government files on UFOs after Obama says that aliens exist It's Friday, February 20th. I'm Luke Vargas for the Wall Street Journal and here is the AM edition of what's news, the top headlines and business stories moving your world. Private credit markets are flashing warning signs after the industry's poster child, Blue Owl Capital, blocked everyday investors from withdrawing their money from one of its funds. The move got the attention of Democratic Senator Elizabeth Warren, who's calling for more oversight. Meanwhile, nervous investors sent shares in other private credit firms lower, reviving comparisons to the stress we saw in credit markets in 2007, just before the global financial crisis. Journal finance editor Alex Franko says we don't yet know whether this is a canary in the coal mine, but that investors are increasingly worried.

[Alex Franko]

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. And the idea is if you're an investor, you're going to get a really high return. And that was a really hot thing for a while, but then 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. So a lot of the investors are asking for their money back. And what Blue Owl did was instead of letting you cash out your shares in these funds, we're going to pay you back your principal, but it's going to take time.

[Luke Vargas]

Alex added that the turmoil in credit markets isn't impacting wider stock markets, which remain at record highs. We are exclusively reporting that the White House wants to ban investors with more than 100 single family homes from purchasing additional homes. That's according to a memo sent to House and Senate Committee leaders, with the Trump administration hoping to add the ban as an amendment to either of the landmark housing pact packages moving through Congress. The proposal affects more investors than initially thought, with hundreds of investment firms set to lose their ability to buy single family homes. And speaking of housing, we've got a special bonus episode coming later today. In the latest what's news in earnings, we'll look at what some of the country's biggest home builders tell us about the health of the US Housing market. Look out for that in your podcast feed at midday. S&P 500 companies are back to appointing fewer women and minority board directors, according to a journal analysis of corporate board data. Diversity is now back to levels seen 10 years ago when institutional investors started pressuring companies to add diversity, equity and inclusion policies. Since then, the political winds have changed and nearly three quarters of last year's newly appointed directors at S&P 500 companies were men and roughly four in five new appointments were white, according to data from People Return. Just a quarter of S&P 500 firms last year had a diversity policy, down from about half the year prior. And a batch of economic data is set to be released today, including an advanced look at fourth quarter US GDP and the Federal Reserve's preferred inflation gauge. And here with a look at what investors will be watching for in those releases, I'm joined by friend of the podcast Journal deputy finance editor Quintin Webb. Quintin, let's start on inflation. We saw in the Fed minutes earlier this week officials are setting a pretty high bar for more rate cuts this year and yet market are still expecting cuts. Which brings us to this release of the PCE price index for December, a delayed release because of the shutdown. What should we be watching for?

[Quintin Webb]

We're looking for a rate of about 3% on a core basis that is stripping out volatile food and energy costs for December. And you know, that is another reminder that while the Fed has succeeded in bringing inflation down from the very high level seen in and coming out of the pandemic, the Fed this last mile of getting back down towards the 2% level which they target over time is proving pretty difficult, right?

[Luke Vargas]

So inflation remaining above target, but what about growth? Quinton? Our most recent poll of economists show they expect the US to have returned to growth above 2% for the last year and for 2026 as well, we

[Quintin Webb]

do see this very strong growth in the economy. Now if you look at the Atlanta Fed GDP now model, which kind of takes recent data points and use them to extrapolate growth that that model is spitting out a kind of very strong rate of growth for the fourth quarter. Not quite as strong as the 4.4% we saw in the third quarter, but it's been a very kind of turbulent few quarters for growth because of tariffs and tariff front running in the spring last year we saw this kind of contraction and then this big bounce back in US Growth. We've got this huge boost from AI investment. So all of these data centers going up and so on, leading to extraordinary amounts of capex spending construction. And that's helped, helping underpin this very robust growth at the moment.

[Luke Vargas]

Quinton Alex was on earlier saying that in spite of these private credit warning signs, stocks just keep moving higher in the US and now we see growth kind of in the same boat. The US Just remaining sort of the economic envy of the world in many ways.

[Quintin Webb]

Correct. You know, 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 was Wall

[Luke Vargas]

Street Journal deputy finance editor Quinton Webb. Quinton, as always, a pleasure. Thank you so much.

[Quintin Webb]

Thanks very much.

[Luke Vargas]

Coming up, the rest of the day's news, including a look at Europe's widening investigations into the Epstein files and why US Authorities aren't following suit after the break.

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[Luke Vargas]

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. The Journal's Matthew Dalton is in Paris. Matt, you and a pair of colleagues in the United States have been exploring these differing approaches that we've seen emerging in relation to these documents, something that was cast into quite sharp relief yesterday with the arrest of former Prince Andrew in the UK Though we should note he's not the only example of the fact that Epstein remains a very live story, shall we say, on this side of the pond.

[Matthew Dalton]

Yeah, prosecutors in a number of European countries are going to be looking through these documents, millions of them, to see if there are crimes involving either their citizens or people on their national territories. One of the challenges, of course, is that in some cases, the statute of limitations may have expired. In other cases, evidence may have been lost. Two of the main characters in this story, Jeffrey Epstein himself and the model scout, Sean Brunel, are both dead. And so that's going to be another obstacle to investigate the crimes that his associates may or may not have committed.

[Luke Vargas]

There are definitely obstacles, but you were speaking there sort of in the future tense, and we've actually seen, in addition to Andrew, other activity recently across Europe that's worth mentioning, specifically beyond the uk.

[Matthew Dalton]

Right. So the Norwegian authorities have charged former Prime Minister Thobjorn Jagland with corruption related to favors gifts that Jeffrey Epstein may have provided to him while he was the head of the Council of Europe. And in France, prosecutors have opened a new sort of investigative effort. France is a place where Epstein spent a lot of time. He owned a vast apartment next to the Arc de Triomphe. He was friends with a lot of people in the French elite. And 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. There are several people who have been associated with Epstein, who are friends with Epstein, who have been accused of sexual assault and rape in recent days. And it's unclear whether those incidents had anything to do with Epstein himself. But that's another thing that's on our radar.

[Luke Vargas]

We should note here that Matt Lange's lawyer didn't respond to a request for comment, though he said in the past that neither Laing nor his family received money from Epstein. Meanwhile, over in the uk, former Prince Andrew has consistently denied wrongdoing, as has Jaglund, the former Prime Minister of Norway. Matt, these cases are very much about misconduct. But as you write, there are other countries that are looking into something else. Potential trafficking.

[Matthew Dalton]

Right. Epstein is known to have looked at a number of Eastern European countries for recruits for his. What he's called 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 to places in Western Europe, maybe to the us and they're going to be looking at the new files that were published to make that determination. We have very little information about what exactly they're looking at, but France, too, is going to be looking at sexual trafficking that may have happened on its territory based on the new information in these files.

[Luke Vargas]

Matt, just zooming out here, you and your colleagues spoke to legal experts as well as the DOJ to try to understand what accounts for the kind of difference in approach we're seeing between the US and in Europe. What did you learn?

[Matthew Dalton]

Well, in the case of Prince Andrew, for example, he was arrested for misconduct in public office. And the Justice Department said that there's no similar crime under US Law. You know, one of the experts that we spoke to said that 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. You know, we'll see what the prosecutions in other European countries, in particular France, lead to.

[Luke Vargas]

We'll be watching closely. I've been speaking to Wall Street Journal reporter Matthew Dalton in Paris.

[Matthew Dalton]

Thanks a lot, Luke.

[Luke Vargas]

And President Trump is ordering the DOD and other divisions of the federal government to release files related to alien life and unidentified flying objects. Trump's order, posted on Truth Social overnight, comes after former President Obama set off an online firestorm with these comments over the weekend. In a podcast interview with Brian Tyler Cohen.

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Are aliens real?

[Luke Vargas]

They're real, but I haven't seen them.

[Matthew Dalton]

And they're not being kept in, what

[Luke Vargas]

is it, Area 51. Area 51. There's no underground facility unless there's this enormous conspiracy and they, they hid it

[Matthew Dalton]

from the President of the United States.

[Luke Vargas]

A Pentagon spokesman said the department looks forward to fulfilling Trump's directive. The DoD in 2024 said it found no evidence that UFO sightings were extraterrestrial spacecraft. And the Journal reported last year that the US Military fabricated evidence of alien technology and let rumors fester in order to cover up secret weapons. And that's it for what's news for this Friday morning. Today's show was produced by Daniel Bach and Hattie Moyer. Our supervising producer is Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Otherwise, have a great weekend and thanks for listening.

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