US lawmakers question Goldman for keeping top lawyer with Epstein ties

• DOJ documents showed Ruemmler maintained extensive contact with Epstein years after his conviction for sex offenses and accepted gifts from him while advising on his media strategy
• The lawmakers questioned Solomon's 'professional judgment and fitness' to lead one of the largest U.S. banks if he retains Ruemmler in an advisory role
• Goldman Sachs has declined to comment on Bloomberg reports that Solomon asked Ruemmler to stay as an adviser despite her resignation as the firm's legal officer

Summary: Goldman Sachs Faces Congressional Scrutiny Over Epstein-Linked Executive

Key Development:

U.S. lawmakers Senator Elizabeth Warren and Representative Raja Krishnamoorthi have challenged Goldman Sachs CEO David Solomon over reports he plans to retain Kathy Ruemmler as an adviser despite her resignation as the bank's top lawyer due to ties with convicted sex offender Jeffrey Epstein.

Background:

Ruemmler resigned in 2024 after Justice Department documents revealed she accepted gifts from Epstein and advised him on managing media inquiries about his crimes. Her resignation becomes effective June 30. However, Bloomberg reported Solomon has asked her to stay on as an adviser, though Goldman declined to comment.

Congressional Action:

The lawmakers' letter questions Goldman's due diligence when appointing Ruemmler and challenges Solomon's "professional judgment and fitness" to lead one of America's largest banks. They demanded answers by June 26 regarding:

• Whether Ruemmler is staying and in what capacity
• Her new title, duties, and compensation
• Goldman's prior knowledge of the Epstein relationship
• Whether Solomon pressed her to remain

Market Context:

Ruemmler's departure represents the most high-profile banking exit following the DOJ's release of Epstein documents earlier this year. Scrutiny on financial institutions' ties to Epstein has intensified since his 2019 death in prison while awaiting federal sex trafficking charges.

Corporate Response:

Goldman Sachs has not commented on the retention plans. Solomon stated in February he respected Ruemmler's decision to leave. Neither Ruemmler nor her spokesperson provided comment.

This controversy adds reputational risk to Goldman Sachs amid heightened regulatory and public scrutiny of Wall Street's ethical standards.