Full Breakdown
Goldman Sachs Under Fire for Retaining Lawyer Tied to Jeffrey Epstein
6/11/2026, 6:10:38 AM
Retention Decision Sparks Controversy
In February 2026 Goldman Sachs’ general counsel Kathy Ruemmler resigned after the Justice Department released emails showing she accepted gifts from Jeffrey Epstein and advised him on media strategy. CEO David Solomon asked her to stay as an adviser beyond June 30 and privately urged, “You don’t have to do this.” The move shocked senior staff and prompted chief of staff Russell Horwitz to object for months.
Key Players and Their Positions
- David Solomon – CEO, defended the decision and called Ruemmler “tremendous.”
- Kathy Ruemmler – Former general counsel, to remain as adviser.
- Russell Horwitz – Outgoing chief of staff, denied his exit was tied to the dispute while privately opposing Solomon.
- Sen. Elizabeth Warren and Rep. Raja Krishnamoorthi – Lawmakers who questioned Solomon’s judgment and Goldman’s due-diligence.
Official Statements & Responses
Solomon told CNBC he had “reluctantly accepted” Ruemmler’s resignation and praised her work. Horwitz denied any link between his departure and the dispute. Warren and Krishnamoorthi’s letter said the disclosures raise serious questions about Goldman’s due-diligence and the CEO’s fitness to lead. Goldman declined comment.
Criticism & Opposition
A senior Goldman executive said there was a “state of shock” after news Ruemmler would stay on. Horwitz’s frustration reflected the view that few leaders would confront the CEO. Lawmakers argue the episode erodes confidence in the bank’s governance and questions Solomon’s judgment.
Verbatim Quotes
- “No, that is not the reason I’m leaving Goldman Sachs,” — Russell Horwitz, outgoing chief of staff
- “You don’t have to do this.” — David Solomon, CEO of Goldman Sachs
- “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,” — Elizabeth Warren and Raja Krishnamoorthi, congressional lawmakers
- “reluctantly accepted” — David Solomon, describing his response to Ruemmler’s resignation
Conflicting Reports & Gaps
Horwitz publicly denied his departure was tied to the dispute, yet multiple insiders cite his opposition as a factor. Goldman has not disclosed Ruemmler’s new title, duties, or compensation, leaving a gap in understanding the scope of her advisory role. The extent of the firm’s prior due-diligence on her Epstein contacts remains unverified.
What’s Next
Solomon must answer the lawmakers’ letter by June 26, as requested by Senator Warren and Representative Krishnamoorthi. Goldman has not provided further comment, leaving the firm’s next steps uncertain.
