Goldman's top lawyer Ruemmler to leave over Epstein ties

Kathy Ruemmler is leaving her position as Goldman Sachs Group Inc.'s top lawyer, drawing to a close a monthslong saga that saw the investment bank staunchly defend Ruemmler over her previous association with Jeffrey Epstein.

For weeks, Goldman has faced a steady drumbeat of headlines as the public has pored over the millions of pages of documents that have been released by the US Department of Justice, which mention Ruemmler's name thousands of times. Together, they shined a light on years of interactions between her and the late pedophile, during which she accepted tens of thousands of dollars in gifts from him and used affectionate nicknames like "Uncle Jeffrey" and "sweetie."

Through it all, Goldman Sachs has stood by Ruemmler, saying executives were briefed about her dealings with Epstein before she was hired, and that the two had worked together in a "professional capacity." Ruemmler has said she regretted ever knowing him.

"My responsibility is to put Goldman Sachs' interests first," Ruemmler said in a statement announcing her planned departure. Chief Executive Officer David Solomon separately said that he accepted her resignation and respects her decision.

Ruemmler is among more than a half-dozen prominent leaders across business, politics and academia that have stepped down from their roles over ties to Epstein. She will leave the bank on June 30.

Before joining Goldman in 2020, Ruemmler was well-known for her time as a White House counsel in Barack Obama's administration and she previously practiced at Latham & Watkins. After Solomon rose to the top of Goldman Sachs, he installed her as the bank's top lawyer, giving her oversight of how the firm responds to all legal and regulatory matters.

Since her connection to Epstein was first reported in 2023, Ruemmler and Goldman have repeatedly said that she used Epstein's contacts to pursue potential legal clients during her time at Latham. Her ties to him resurfaced in November, when a congressional committee released some Epstein documents that included emails between the two.

Messages that have emerged in the Justice Department's trove laid bare the extent of her relationship with Epstein, a notorious sex criminal who pleaded guilty in 2008 to Florida state charges that included procurement of a minor to engage in prostitution. He died by apparent suicide in jail while facing federal sex-trafficking charges in 2019.

For instance, the documents showed he gave her many items, including a $9,400 Hermès bag, a $4,200 Fendi fur-trimmed plaid wool coat and a $1,700 Fendi leather shoulder bag. In one message in 2019 she remarked: "Am totally tricked out by Uncle Jeffrey today! Jeffrey boots, handbag, and watch!"

While Goldman has maintained that Ruemmler never advocated for him legally, the documents show she offered her perspective in a number of contentious legal scenarios and advised on strategies for defending his reputation in the media.

She offered her thoughts in 2015 when Epstein asked her questions about the legalities surrounding prostitution and consent. Around that time, multiple women were suing the federal government over Epstein's 2008 plea agreement. "no girl caem to the house to learn math, does sex for money change the equation, ?" he wrote. Ruemmler responded that minors "could not legally consent to engaging in prostitution."

Even as the revelations reached a fever pitch this week, Ruemmler seemed to still have the support of Solomon. In November, the CEO called her "an excellent lawyer" when asked if he expected further fallout from her past with Epstein. More recently, a Goldman Sachs spokesperson said the bank had done due diligence about her ties to Epstein and "was satisfied."

"Kathy has been an extraordinary general counsel," Solomon said in his statement Thursday. "As one of the most accomplished professionals in her field, Kathy has also been a mentor and friend to many of our people, and she will be missed."

On Friday, he said on CNBC that she is a "tremendous human being" and said Ruemmler herself had come to the decision that the situation had become a distraction for the firm.

"It was putting her in a position where it was hard for her to execute on her job and her responsibilities, and she just thought it was time to step away," Solomon said. "I reluctantly accepted her resignation, but I respect her decision."

The disclosure of the files relating to Epstein was required by a law passed by Congress last year, following bipartisan pressure from lawmakers, victims and activists. The material contains references to wealthy and powerful people who had associations with Epstein at various points. Inclusion in the documents isn't an indication of wrongdoing.

The scandal has ensnared other high-profile individuals on Wall Street and elsewhere, including attorney Brad Karp, who recently stepped down as head of Paul, Weiss, Rifkind, Wharton & Garrison, and former Harvard president and US Treasury Secretary Larry Summers, who has said he regretted his relationship with Epstein.

Peter Mandelson was sacked as the UK's ambassador to the US last year and also resigned as a member of the House of Lords over his ties to Epstein. The scandal is now engulfing Prime Minister Keir Starmer's government.