Goldman Sachs’ messy attempt to move past a damaging scandal related to Jeffrey Epstein has just gotten messier.
According to a report from the Wall Street Journal, attorney Kathryn Ruemmler, general counsel for the financial giant, was supposed to move on after her ties to convicted sex offender Jeffrey Epstein became public and too embarrassing to ignore.
Instead, she’s still there despite an announcement that she would be leaving in June — and that is creating tension among staffers and impeding the hiring of her replacement.
The attorney has been under the gun since a Justice Department report divulged that Ruemmler had a history of accepting lavish gifts from Epstein, coached him on dodging negative press while sharing “intimate details” about her dating life with the convicted sex offender.
Ruemmler initially announced her resignation in June, ostensibly to spare the bank from further distraction. But she didn’t actually leave, with the Journal reporting that she is “staying on in an advisory role and to help the transition to her successor, the bank told employees last month.
The prolonged limbo has created headaches for Goldman’s leadership. Ruemmler has been instrumental in vetting candidates for her former position, but her lingering presence has spooked external candidates who “are wary of taking the role because it is unclear how long Ruemmler will stay on and in what capacity, they said.”
The report notes that Ruemmler “has been on a campaign to reset the narrative about her relationship with Epstein, keeping it alive in the headlines and the halls of Goldman Sachs.”
She’s also hired her own public relations team and recently participated in an interview for a New York Times guest essay, signaling that she intends to actively shape how her story is told, the Journal is reporting, while noting that, behind closed doors, Ruemmler has accused other Goldman executives of leaking damaging information to the media — a charge that underscores the internal finger-pointing roiling the bank.
Goldman Sachs spokesman Tony Fratto characterized Ruemmler’s decision to stay on as a practical necessity, explaining, “The leadership and the Board appreciate her willingness to stay and help as she has been an excellent General Counsel.”
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