Kathy Ruemmler to remain at Goldman Sachs after – Business News
Goldman Sachs is holding its soon-to-be-former prime lawyer on the payroll regardless of the Jeffrey Epstein scandal that compelled her resignation earlier this 12 months.
Kathryn Ruemmler, the bank’s outgoing chief legal officer and basic counsel, will remain at Goldman as an adviser after CEO David Solomon personally requested her to keep on, in accordance to Bloomberg News
The transfer marks a shocking reversal after Goldman introduced in February that Ruemmler would retire from her roles efficient June 30 following the release of hundreds of emails detailing her relationship with the late convicted intercourse offender.
Outgoing Goldman Sachs chief legal officer Kathryn Ruemmler is staying at the bank as an adviser. AP
Solomon later mentioned he had “reluctantly accepted” Ruemmler’s resignation after the Justice Department launched troves of Epstein-related paperwork displaying years of close contact between the pair.
Michael Bosworth will take over as interim basic counsel in July whereas Goldman continues its seek for a everlasting substitute, in accordance to people conversant in the matter cited by the FT.
Ruemmler’s continued affiliation with Goldman is probably going to reignite a controversy that rattled the Wall Street giant for months and uncovered divisions within the firm over Solomon’s steadfast help for one of his closest advisers.
The former Obama White House counsel stepped down after a regular stream of disclosures revealed a relationship with Epstein that went far past a informal skilled acquaintance.
Jeffrey Epstein, the disgraced financier and convicted intercourse offender, maintained a years-long relationship with Kathryn Ruemmler earlier than his 2019 arrest. DOJ
The emails confirmed Epstein arranging presents for Ruemmler, together with a Hermès purse, Apple merchandise, spa appointments and haircuts. At the time of her resignation, Ruemmler informed the FT that the difficulty had change into a “distraction.”
In one 2015 message, she wished him a completely satisfied birthday, writing: “I hope you enjoy the day with your one true love :-)”
After Epstein responded with a crude joke, Ruemmler shot back that it was “Hard to believe that there is still an open question about whether men are [the] inferior gender.”
The correspondence additionally confirmed Ruemmler expressing appreciation for his or her relationship.
In one electronic mail, she informed Epstein that “friendships goes two ways – getti=g you some peace with respect to all of this legal shit is important to me.”
Goldman Sachs CEO David Solomon requested Kathryn Ruemmler to remain at the bank as an adviser after her resignation, in accordance to the Financial Times. AFP through Getty Images
In one other message despatched during a first-class journey to Europe that Epstein had organized, she wrote that she was “grateful” for his or her relationship and signed off with “Xo.”
The two additionally exchanged heat personal messages over time.
In September 2016, Epstein thanked Ruemmler for her “friendhsip and help,” to which she replied, “Back at you, and always.”
In a separate 2019 electronic mail after receiving presents from him, Ruemmler wrote: “Am totally tricked out by Uncle Jeffrey today! Jeffrey boots, handbag, and [watch]!” and added: “Thank you to Uncle Jeffrey!!!”
Ruemmler has persistently argued that her relationship with Epstein arose from her work as a distinguished white-collar protection lawyer and that she interacted with him the identical method she did {many professional} contacts.
Ruemmler resigned as Goldman Sachs’ prime lawyer earlier this 12 months after a trove of Epstein emails grew to become public.
Through statements issued by her legal professionals and spokespeople, she has mentioned Epstein was a business referral source who shared a consumer along with her, that she by no means formally represented him and was by no means paid by him, and that she had “no knowledge of any new or ongoing unlawful activity on his part.”
Ruemmler has additionally maintained that she solely noticed the model of Epstein that he introduced to influential people and that, had she identified what later emerged about his conduct, “she never would have dealt with him at all.”
Solomon’s help for Ruemmler had rankled some Goldman executives and members of the bank’s influential alumni community, who feared the controversy might tarnish the firm’s popularity.
Ruemmler’s resignation was one of a number of high-profile company casualties stemming from the Justice Department’s release of Epstein information, which additionally ensnared billionaire Bill Gates, former Treasury Secretary Lawrence Summers and former UK Labour politician Peter Mandelson.
Goldman and Ruemmler each declined to remark.
