NEW YORK, June 10 (Reuters) - U.S. Democratic lawmakers
Elizabeth Warren and Raja Krishnamoorthi have flagged concerns
to Goldman Sachs ( GS ) 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 ( GS ) 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 ( GS ) 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.