Ken Sweet
Goldman Sachs general counsel Kathy Ruemmler has had a storied legal career. As a federal prosecutor, she helped successfully prosecute Enron executives including Ken Lay and Jeffrey Skilling. She was part of President Barack Obama’s administration, working in various roles for much of his two terms in office, including as White House Counsel.
She was even briefly considered by President Obama as a candidate for attorney general.
Ruemmler, 54, announced that she plans to resign from the top legal post at Goldman after a trove of emails and correspondence between her and disgraced financier Jeffrey Epstein showed the two individuals were especially close, years after Epstein’s 2008 conviction on sex crimes charges, when he became a registered sex offender.
Ruemmler previously downplayed her relationship with Epstein. She called him a “monster” and said she regretted ever knowing him. Ruemmler has repeatedly described their relationship as professional, citing her job as a private defense attorney before she ever joined Goldman Sachs.
But documents released in recent weeks and reviewed by The Associated Press depict a deeper relationship than had previously been characterised by Ruemmler and Goldman Sachs. These included intimate email exchanges, social plans and gifts that went beyond formal legal work.
Roughly 8400 documents involved Ruemmler or referenced her. Some correspondence shows that Ruemmler was aware of the extent of the allegations that Epstein had faced involving underage girls in Florida. In some instances, she advised Epstein on how he might go about trying to repair his image and defend himself publicly against new claims of misconduct.
The gifts Epstein gave to Ruemmler have been documented in news reports: the spa treatments, the handbags from Hermes, an Apple Watch, a Fendi coat, among many others. But some of the interactions between Epstein and Ruemmler described throughout their correspondence indicates that Epstein and Ruemmler did not simply have a lawyer-client transactional relationship, as Ruemmler previously attested to.
“It makes him happy to see you happy,” Epstein’s assistant wrote to Ruemmler in 2016, after Epstein prepaid for a spa treatment for her.
In October 2018, Epstein directed one of his assistants to send flowers and chicken soup to Ruemmler because she has “not been feeling well.” It would not be the first time that Epstein would send her a small token of appreciation when she was sick. They talked about dating issues, made jokes about both the wealthy and everyday people, and shared laments about their careers and dating lives.
They would message each other about mundane things like their mutual distaste for seeing babies in business class on flights and would repeatedly plan to have dinner or drinks in various places. Epstein even had Ruemmler as a backup executor of his will at one point.
Setting aside the immense wealth and privilege and Epstein’s legal troubles, many of the emails between the two would look no different from the banter that many Americans would share to in their own text messages, emails or group chats.
“Well, I adore him. It’s like having another older brother!” she wrote in an email in 2015.
During her time in private practice after she left the White House in 2014, Ruemmler received several expensive gifts from Epstein, including luxury handbags and a fur coat. The gifts were given after Epstein had already been convicted of sex crimes in 2008 and was registered as a sex offender. Ruemmler was also involved in Epstein’s legal defence efforts after he was arrested a second time for sex crimes in 2019 and later killed himself in a Manhattan jail.
“So lovely and thoughtful! Thank you to Uncle Jeffrey!!!” Ruemmler wrote to Epstein in 2018.
She later joined Goldman Sachs in 2020 and became the investment bank’s top lawyer in 2021.
The firm’s leadership backed her publicly amid the revelations. But the embarrassing emails raised questions about Ruemmler’s judgment. Historically, Wall Street frowns on gift-giving between clients and bankers or Wall Street lawyers, particularly high-end gifts that could pose a conflict of interest. Goldman Sachs requires its employees to get pre-approval before receiving gifts from or giving them to clients, according to the company’s code of conduct, partly in order to not run afoul of anti-bribery laws.
Bloomberg News, The Wall Street Journal and other media outlets reported that Goldman’s partners, who are the firm’s most senior and well-regarded members going back to when the investment bank was privately held, had begun to question why the firm was holding Ruemmler in such high regard when other lawyers were just as qualified to hold the top legal job.
In her statement, Ruemmler said: “Since I joined Goldman Sachs six years ago, it has been my privilege to help oversee the firm’s legal, reputational, and regulatory matters; to enhance our strong risk management processes; and to ensure that we live by our core value of integrity in everything we do. My responsibility is to put Goldman Sachs’ interests first.”
Goldman CEO David Solomon he respected Ruemmler’s decision to resign. The firm isn’t rushing Ruemmler out the door, saying in a statement that she would wind down her work at the bank “to ensure a smooth transition,” before her last day on June 30.
AP
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