NEW YORK, June 10 (Reuters) – U.S. Democratic lawmakers Elizabeth Warren and Raja Krishnamoorthi have flagged concerns to Goldman Sachs CEO David Solomon over his reported plans to keep top lawyer Kathy Ruemmler as an adviser despite her links to the late sex offender Jeffrey Epstein.
Goldman’s legal officer Ruemmler resigned this year after documents published by the U.S. Justice Department showed she accepted gifts from Epstein and advised him on how to address media inquiries regarding his crimes. Her resignation will be effective June 30, a source told Reuters.
Solomon has asked her to stay at the firm as an adviser, Bloomberg reported on Wednesday, citing people with knowledge of the matter.
Goldman Sachs declined to comment on the report.
In the letter, U.S. Senator Warren and U.S. Representative Krishnamoorthi raised concerns that the material released by the DOJ and other reporting suggest Ruemmler maintained extensive contact with Epstein years after his conviction.
“The information uncovered in recent months not only raises serious questions as to whether Goldman Sachs either failed to conduct proper due diligence or viewed Ruemmler’s relationship with Epstein as appropriate when appointing her as the firm’s top lawyer, but now calls into question your professional judgment and fitness to continue leading one of the largest banks in the United States,” the letter said.
The lawmakers asked Solomon to explain if “Ruemmler is no longer departing the bank, please provide the reasoning, her new title, duties associated with her new role, and details regarding her compensation package.”
“Did you ‘press’ Ruemmler to stay at the firm? If so, why?” it said.
Ruemmler did not immediately respond to a Reuters request for comment. Her external spokesperson declined to comment.
The departure of Ruemmler, who was among the top executive officers of the Wall Street firm, is the most high-profile banking exit after the release of the latest Epstein documents by the DOJ earlier this year.
Krishnamoorthi and Warren requested responses from Solomon by June 26 regarding Goldman’s prior knowledge of Ruemmler’s relationship with Epstein, the firm’s due diligence and defense of its top lawyer following the DOJ document release, the letter said.
Goldman CEO Solomon said in February he had reluctantly accepted her resignation, telling CNBC he respected her decision to leave.
Scrutiny has intensified on the ties between major financial institutions and Epstein, who died in prison in 2019 while awaiting trial on federal sex trafficking charges. His death at the Metropolitan Correctional Center in New York City was ruled a suicide.
(Reporting by Saeed Azhar, editing by Pete Schroeder and David Gregorio)
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