Goldman adviser Kathryn Ruemmler faces House questions on Epstein ties

Kathryn Ruemmler, Goldman Sachs’ former chief legal officer, is scheduled to answer questions Wednesday from the House Oversight Committee about her past relationship with Jeffrey Epstein, CNBC reported. For Goldman shareholders, the issue centers on governance and reputational risk: how a major bank handles scrutiny involving a senior executive can matter even when the matter is outside its core business.

The session is voluntary and transcribed, meaning lawmakers will question Ruemmler in a formal interview that is recorded in writing for the committee. According to CNBC, the panel is expected to focus on Ruemmler’s contacts with Epstein from 2014 to 2019, including gifts he sent her, advice she gave him about handling media attention and a phone call he made to her after his July 2019 arrest on federal child sex trafficking charges.

Ruemmler moved out of Goldman’s top legal job weeks ago after renewed attention on friendly emails with Epstein, CNBC reported. She did not leave the firm. Goldman kept her in an advisory role while it looks for a permanent replacement.

Ruemmler’s spokeswoman has said she did not represent Epstein as a lawyer and knew him through a mutual legal client, according to CNBC. Ruemmler met Epstein in 2014 while working at Latham & Watkins as a white-collar defense lawyer, a legal practice focused on business-related investigations and alleged financial or corporate misconduct.

Documents released by Congress and the Justice Department show Epstein sent Ruemmler luxury gifts and called her after his arrest, CNBC reported. Those materials also show that in March 2019 she proposed language Epstein could use in response to criticism of the plea deal he received in 2008.

Ruemmler has said she regrets knowing Epstein, CNBC reported. CNBC also reported that she has not been accused of taking part in Epstein’s crimes.

Goldman’s handling of the role change

Goldman CEO David Solomon told CNBC in February that public attention around the matter made it difficult for Ruemmler to carry out her duties, which led her to decide to step away from the chief legal officer post.

In a CNBC “Halftime Report” interview Tuesday, Solomon defended the firm’s decision to keep Ruemmler involved after the end-of-June resignation she had announced. “Why wouldn’t we take advantage of that as we try to do its best for Goldman Sachs?” Solomon said, according to CNBC. “That’s an obligation to do its best for Goldman Sachs. And Kathy is ... helping us do that.”

The chief legal officer of a bank like Goldman oversees legal risk, regulatory matters and compliance-sensitive decisions. A transition in that role can draw attention from investors because banks operate under close supervision and depend heavily on trust with clients, regulators and counterparties.

Part of a broader Epstein inquiry

The Oversight Committee’s inquiry is examining Epstein’s crimes, how federal authorities handled his cases and how Epstein and Ghislaine Maxwell developed relationships with powerful people, CNBC reported.

The committee has also interviewed former President Bill Clinton, Microsoft founder Bill Gates and Commerce Secretary Howard Lutnick, according to CNBC. Ruemmler also previously served as White House counsel during the Obama administration.

This story draws on original reporting from CNBC.