Bankers at Goldman Sachs are reportedly expressing concerns over CEO David Solomon’s backing of Kathy Ruemmler, especially after her connections to Jeffrey Epstein were brought to light. It seems that Solomon might be stepping down in light of this situation.
Russell Horwitz, the chief of staff at Goldman, has raised alarms for quite some time regarding Solomon’s support for Ruemmler. A barrage of documents related to Epstein has shown the depth of her ties to the disgraced financier, according to a recent Financial Times report.
The report also mentions reactions from people close to Horwitz.
An insider told the Post that, while the Financial Times’ account is accurate, many at Goldman were “shocked and appalled” that an executive would voice disagreements with the CEO publicly.
Horwitz is set to resign at the end of June, though he has denied that his departure is tied to the controversy involving Ruemmler.
“No, that is not why I am leaving Goldman Sachs,” he stated in comments shared with the newspaper.
According to sources cited in the report, Horwitz was among the few executives willing to challenge Solomon on this issue. Neither Goldman Sachs nor Ruemmler’s representatives have provided comments when approached by the Post.
Ruemmler had stepped down in February after a significant number of emails related to Epstein were unearthed by the Justice Department.
Despite her resignation, Solomon reportedly asked her to continue as an advisor even beyond her planned retirement later this month, as noted by the FT.
According to a source familiar with the matter, “Mr. Russell was one of the few who tried to tackle the issue; it was quite frustrating for him.”
Another insider mentioned that Solomon’s support of Ruemmler is a sensitive topic within the firm, with few executives willing to question the CEO’s loyalty to one of his main aides.
This internal dissent starkly contrasts Solomon’s long-time endorsement of Ruemmler.
Solomon had previously described Ruemmler as a “fantastic” individual when she resigned in February, although he said he “reluctantly accepted” her choice.
Reportedly, in April, he even encouraged Ruemmler to reconsider her resignation, stating, “There’s no need to do that.”
Those close to Ruemmler mentioned that she had been very forthcoming with Goldman about her past ties to Epstein when she joined the firm and even rejected a $30 million offer to work on his legal team following his arrest in 2019. She has expressed regret for knowing Epstein and insists she was unaware of his illegal activities.
However, the FT noted that Horwitz remains skeptical and has been among the few executives opposing Solomon’s ongoing support for Ruemmler.
As reported, a slew of emails released by the Justice Department revealed significant communications between her and Epstein.
An executive at Goldman commented on the “shock” felt within the organization when Ruemmler’s ongoing position was revealed last week.
Two Democratic leaders have publicly shared similar concerns, with Sen. Elizabeth Warren (D-Mass.) and Rep. Raja Krishnamoorthi (D-Ill.) writing to Solomon that retaining Ruemmler “calls into question” his “professional judgment and fitness” to continue leading such a major bank.
The Post is awaiting a response from Horwitz regarding these developments.
