By AnnaMaria Andriotis

Goldman Sachs Chief Executive David Solomon for months staunchly defended his general counsel, Kathryn Ruemmler, in the midst of a storm over her ties to Jeffrey Epstein.

Solomon said he had complete confidence in Ruemmler, a key adviser of his and former White House counsel for President Barack Obama, despite revelations about her past connections to the infamous sex offender.

Her future at the firm seemed secure. Then the winds changed.

A trove of new documents released showed Ruemmler and Epstein discussing his legal and media strategies over email, which people familiar with the matter said raised concerns among some Goldman board members.

Separately, Brad Karp, chairman of law firm Paul Weiss, stepped down from his position Feb. 4, urged by his partners who said he couldn't continue after other emails suggested he had been closer to Epstein than previously known.

Some Goldman board members viewed Karp's situation as somewhat parallel to what the bank was facing with Ruemmler and wondered about the optics of her remaining at the firm, the people familiar with the matter said. Some of Goldman's clients were asking questions, too.

By Thursday, the situation reached a breaking point. Ruemmler told Solomon she plans to resign later this year due to the distraction that media coverage of the Epstein files had caused. Solomon, describing her as "one of the most accomplished professionals in her field," said she would be missed.

Goldman spokesman Tony Fratto said Solomon "has obviously had regular discussions with the board about the news surrounding Kathy." He said no board members asked Solomon last week how the firm could keep Ruemmler in her position or expressed parallels to Karp. He said the board was supportive of Ruemmler and remains so today.

Unwavering support

A number of Wall Street figures including former JPMorgan Chase banker and former Barclays CEO Jes Staley and Apollo Global Management co-founder Leon Black have retreated from public life after details about their friendships with Epstein came to light. Staley and Black have said they were unaware of Epstein's crimes and regretted their associations with him.

In Ruemmler's case, previous document releases showed she had been listed as a backup executor on a version of Epstein's will and that the two had engaged in extensive friendly banter in which Ruemmler criticized President Trump and mocked overweight people.

The most recent files released by the Justice Department late last month revealed Ruemmler had been in contact with Epstein through his 2019 arrest and that he had previously showered her with lavish gifts including an Hermès bag and $10,000 in Bergdorf Goodman gift cards. Fratto previously said Epstein had given many people unsolicited gifts.

Ruemmler, who joined Goldman in 2020, earned Solomon's trust in large part because of her ability to give him honest feedback and her expertise in maneuvering in Washington. One key moment for Solomon was when she helped prepare him to appear before Congress in 2021 alongside other bank CEOs, people familiar with the matter said. Solomon had been nervous about the appearance and Ruemmler's exacting coaching sessions put him at ease , the people said.

Fratto said that Solomon had testified in front of Congress before and was comfortable doing so.

Ruemmler is one of the firm's highest-paid executives, with Goldman awarding her around $22 million in compensation in 2024, according to a company filing.

Goldman board members and partners had grown accustomed to tiptoeing around the topic of Ruemmler and Epstein in front of Solomon, according to people familiar with the matter. The chief executive had long brushed off concerns about her extensive ties to Epstein, which were first revealed in a 2023 article in The Wall Street Journal.

"Partners aren't shy about expressing their opinions to senior leadership," Fratto said.

Ruemmler has said she knew Epstein through her work as a criminal defense attorney at Latham & Watkins. Latham has said Epstein wasn't one of the firm's clients. Ruemmler's spokeswoman said Ruemmler has done nothing wrong and has nothing to hide. She said Ruemmler shared a client with Epstein, received referrals from him and was "friendly in that professional context."

The spokeswoman also said Epstein sought informal advice from Ruemmler and that she gave feedback "based on her understanding at the time, without any formal involvement."

Ruemmler "has deep sympathy for those harmed by Epstein and if she knew then what she knows now, she never would have dealt with him at all," the spokeswoman said.

Some board members and partners were concerned about Solomon's continued support of her as more details about her association with Epstein came out, people familiar with the matter said.

The Journal reported in January that John Rogers, the powerful Goldman executive who brought Ruemmler into the bank, told a few close associates he was putting together a contingency plan in which she would leave later this year. The idea would be to give Ruemmler as graceful an exit as possible by distancing it from the Epstein revelations, and Solomon wasn't involved with the plan, the Journal reported.

The bank and Rogers denied the reporting.

Ruemmler started working with the high-powered defamation lawyer Tom Clare, and recently, her own crisis communications firm. The bank continued defending her and she attended Goldman's annual partners meeting in Miami in early February, appearing determined to continue with business as usual, people familiar with the matter said. She was also still joining the bank's weekly management committee meetings, one of the people said.

A shift

Karp, an influential lawyer in corporate circles, gave up his role leading the firm earlier this month after emails showed an association with Epstein that lasted years. Of particular concern to some of his partners were 2019 emails in which Karp appeared to review a draft court filing for Epstein during a plea-deal fight months before his death.

A Paul Weiss spokesman previously said Karp regrets his interactions with Epstein.

Karp's abrupt resignation as chairman prompted some Goldman board members to ask more questions about the potential risk to the firm of keeping Ruemmler.

One particularly sensitive area for those board members was documents in which Ruemmler provided guidance on how to deal with media coverage of Epstein's alleged crimes and defend his 2008 plea agreement, people familiar with the matter said.

Some clients in the investment bank and wealth management divisions called bankers raising questions and concerns, other people familiar with the matter said. Some female clients of the firm in recent days declined to participate in a project related to women's history month, citing the bank's ties to Ruemmler, one person said.

"Of course some clients called with questions or concerns about the news surrounding [Ruemmler]," Fratto said. "I'm not aware of any client declining to participate in a Goldman Sachs program."

Solomon on Thursday and Friday was appearing in the PGA Tour's AT&T Pebble Beach Pro-Am, a tournament that pairs professional golfers with amateurs at the famed California course. Solomon and golfer Max Greyserman were playing alongside Florida Gov. Ron DeSantis and golfer Billy Horschel.

Sometime Thursday, Ruemmler called Solomon to tell him she planned to resign. The plan is for her to resign as of June 30.

In a CNBC appearance from California on Friday morning, Solomon said he had reluctantly accepted her resignation and called her a "tremendous human being."

"I'm disappointed that it got to this," Solomon said. "But I respect her decision, and we are moving on."

Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com

(END) Dow Jones Newswires

February 14, 2026 14:26 ET (19:26 GMT)

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