Dive Brief:

• Kathryn Ruemmler, Goldman Sachs’ chief legal officer and general counsel, has resigned, as the Justice Department’s recent release of emails and other documents exposed the extent of her ties to late financier and convicted sex offender Jeffrey Epstein. 
• “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,” Goldman CEO David Solomon said in a statement the bank shared Friday. “As one of the most accomplished professionals in her field, Kathy has also been a mentor and friend to many of our people, and she will be missed. I accepted her resignation, and I respect her decision.”
• Ruemmler’s resignation is effective June 30. She becomes perhaps the highest-profile banker to step down over her Epstein connection since ex-Barclays CEO Jes Staley left his post in 2021. At the time, British regulators were investigating how Staley characterized his relationship with Epstein. Staley has since been banned for life from working in the banking industry by the U.K.’s Financial Conduct Authority.

Dive Insight:

Ruemmler joined Goldman in 2020, as global head of regulatory affairs, according to her LinkedIn profile. She became the lender’s legal chief in 2021. She’s also served as chair of the company’s conduct committee and co-vice chair of its reputational risk committee, according to Goldman’s website.

Ruemmler “made the determination that the media attention on me, relating to my prior work as a defense attorney, was becoming a distraction,” she told the Financial Times on Thursday.

Documents released by the DOJ last month reveal a close relationship between Ruemmler and Epstein, who she referred to as “Uncle Jeffrey,” “wonderful” and “thoughtful.” The two met often for meals, and Epstein had gifts such as handbags and an Apple Watch delivered to her, and treated her to hair, massage and facial appointments.

Her name appears in more than 9,300 of the documents accessible through the DOJ’s website. Some 3.5 million pages have been released.

“Well, I adore him. It's like having another older brother!” Ruemmler wrote of Epstein in a 2015 email to someone who worked for him.

She also explained aspects of the law to Epstein as it related to claims against him. 

“I think the point is that if she was underage, she could not legally consent to engaging in prostitution,” Ruemmler wrote in a 2015 email to Epstein. “But if she claims she was coerced into it when underage then any consent given when of age or over probably not valid as a legal matter.”

Epstein, who pleaded guilty to state charges in 2008, was again arrested in 2019 on federal sex trafficking charges. He is believed to have killed himself that year while in jail.

Before joining Goldman, Ruemmler served as White House counsel to former President Barack Obama. She previously was global chair of the white collar defense and investigations practice at law firm Latham & Watkins. Earlier in her career, she was an associate counsel to former President Bill Clinton, according to Goldman’s website. Ruemmler also served as a federal prosecutor for seven years.