Overview
U.S. Democratic lawmakers Elizabeth Warren and Raja Krishnamoorthi have formally raised questions with Goldman Sachs' chief executive regarding reported plans to keep Kathy Ruemmler at the firm in an advisory capacity despite documents tying her to Jeffrey Epstein. The correspondence to the chief executive requests a clear accounting of the bank's decision-making, the proposed adviser role, and any compensation that would be paid if she remains on staff.
What the DOJ materials allege
Documents published earlier this year by the U.S. Department of Justice showed that Ruemmler accepted gifts from Epstein and advised him on how to handle media inquiries linked to his crimes. After those documents were publicly released, Ruemmler submitted her resignation from her role as Goldman's legal officer. A source familiar with the situation told Reuters that her resignation will be effective June 30.
Reports of an adviser role
Media reporting has indicated that Chief Executive David Solomon has asked Ruemmler to remain with the firm as an adviser. Those reports attribute the information to people familiar with the matter. Goldman Sachs declined to comment on the reporting.
Lawmakers' concerns and requested information
In their letter, Senator Warren and Representative Krishnamoorthi highlighted what they said were troubling implications in the material released by the DOJ and other reporting, including that Ruemmler maintained extensive contact with Epstein years after his conviction. The lawmakers wrote that the recent disclosures "not only raise serious questions as to whether Goldman Sachs either failed to conduct proper due diligence or viewed Ruemmler’s relationship with Epstein as appropriate when appointing her as the firm’s top lawyer, but now call into question your professional judgment and fitness to continue leading one of the largest banks in the United States."
The lawmakers asked Solomon to explain whether Ruemmler will in fact depart the bank as planned. If she will not, they asked for the reasoning for reversing or altering her departure, her new title, the duties associated with the new role, and specific details about any compensation package tied to that position. The letter also posed a direct question: "Did you 'press' Ruemmler to stay at the firm? If so, why?"
Warren and Krishnamoorthi requested responses from Solomon by June 26 concerning what Goldman knew about Ruemmler's relationship with Epstein prior to her appointment, the firm's due diligence regarding that relationship, and how the firm defended its top lawyer after the DOJ documents were released.
Responses and context in brief
Ruemmler did not immediately respond to a request for comment. Her external spokesperson declined to comment on the matter. Goldman Sachs similarly declined to comment on reporting that Solomon sought to keep her as an adviser.
In February, Solomon said he had reluctantly accepted Ruemmler's resignation and told CNBC he respected her decision to leave. Observers and lawmakers say the episode has intensified scrutiny of connections between major financial institutions and Jeffrey Epstein, who died in custody in 2019 while awaiting trial on federal sex trafficking charges; his death was ruled a suicide.
Significance
Ruemmler's departure was characterized by the correspondence' signatories and others as the most prominent executive exit in the banking sector following the release of the DOJ documents earlier this year. The lawmakers' query centers on governance, vetting of senior hires, and accountability at a major financial institution.