Goldman Sachs general counsel Kathy Ruemmler will leave the firm on , following scrutiny over her extensive correspondence with convicted sex offender Jeffrey Epstein. The decision, announced to the Financial Times, comes after the release of Justice Department files detailing years of communication between Ruemmler and Epstein, even after Epstein’s 2008 guilty plea to state charges of soliciting prostitution from a minor.
Ruemmler framed her departure as a response to the distraction caused by media attention surrounding her prior work as a defense attorney. “I made the determination that the media attention on me, relating to my prior work as a defence attorney, was becoming a distraction,” she told the Financial Times.
Goldman Sachs CEO David Solomon publicly supported Ruemmler following the initial revelations in 2023, and reiterated that support on Thursday, stating, “Throughout her tenure, Kathy has been an extraordinary general counsel, and we are grateful for her contributions and sound advice on a wide range of consequential legal matters for the firm.” He added that she “will be missed.”
Ruemmler’s resignation marks a significant corporate fallout from the broader disclosures stemming from the Epstein files. Just last week, Brad Karp stepped down as chair of US law firm Paul Weiss after revelations about his own relationship with Epstein.
The released documents reveal a pattern of communication between Ruemmler and Epstein spanning from 2014 to 2019, while Ruemmler was at Latham & Watkins. The correspondence went beyond casual exchanges, with Ruemmler seeking Epstein’s advice on career opportunities, including a potential bid to become US Attorney General in 2014. Epstein urged her to “talk to boss” about the position, to which Ruemmler replied she needed to be prepared to say yes first.
Emails also show Ruemmler sharing personal information with Epstein, including forwarding emails about an affair she was having with one of his associates. Epstein, in turn, lavished gifts upon Ruemmler, including a Hermès bag, Apple products, spa treatments, haircuts, and plane tickets. In a January 2019 email, Ruemmler wrote, “Am totally tricked out by Uncle Jeffrey today! Jeffrey boots, handbag, and watch!”
Ruemmler has stated she regretted knowing Epstein and had no knowledge of his criminal activities. On Thursday, she said, “I made decisions based on the information that was available to me. I have an enormous amount of sympathy and heartache for anyone who he hurt.”
However, the extent of Ruemmler’s contacts with Epstein triggered growing frustration within Goldman Sachs, according to several current and former executives. Some board members reportedly expressed private concerns that Solomon’s continued backing of Ruemmler could damage the bank’s reputation.
“It’s a distraction and it’s embarrassing,” said one person close to a Goldman board member before Ruemmler’s resignation. “It’s not the board’s job to hire and fire people. That is the CEO’s role.”
Former Goldman executives also voiced surprise at the firm’s handling of the situation. Five former partners expressed disbelief that Solomon chose to stand by Ruemmler rather than distance the company from the controversy, describing feelings of “deep embarrassment,” being “crushed,” and being “profoundly disappointed.”
Prior to the controversy, Ruemmler was highly regarded within Goldman Sachs, known as a well-liked, discreet, and accomplished lawyer. She served as White House counsel under President Barack Obama and held senior positions on internal reputational risk and conduct committees at Goldman.
Previously, Goldman Sachs and Ruemmler characterized her relationship with Epstein as “professional,” suggesting she leveraged her ties to him for business development purposes. The newly released emails, however, paint a picture of a far closer and more personal connection, raising questions about judgment and potential conflicts of interest.
The situation highlights the continuing repercussions of Epstein’s crimes and the scrutiny faced by individuals who maintained relationships with him, even before the full extent of his offenses became public. Ruemmler’s departure underscores the reputational risks for financial institutions and legal professionals associated with Epstein, and the pressure to demonstrate accountability in the wake of these revelations.
