The British Prime Minster says Lord Mandelson has let the country down - as he quits the House of Lords. 

UK Police are now investigating allegations that Mandelson shared internal government information with convicted sex offender - Jeffery Epstein. 

The latest release of Epstein files also show pictures of Mandelson in his underwear with an unidentified woman. 

UK correspondent Mike Pearse told Ryan Bridge the Government told him if he didn't resign - they would've introduced legal powers to sack him.

He says it's turning out to be one of the biggest political scandals in the UK in recent years.