We’ve tried to stay away from the revelations from the recent release of the Jeffrey Epstein files. But a Wall Street Journal article this week about Epstein’s relationship with Goldman Sachs’ general counsel raises interesting crisis communications issues — specifically, responding to accusations in such a story.

The Jan. 19 article, “Goldman Sachs Grapples With Top Lawyer’s Epstein Problem,” reports that rumblings have grown in the prestigious investment bank with each succeeding revelation about Kathryn Ruemmler’s ties to the now-deceased convicted sex offender. Goldman Sachs hired Ruemmler in 2020 and promoted her to top lawyer the next year.

It’s a tough crisis for the bank to deal with. The relationship “has drawn scrutiny inside Goldman Sachs” and has triggered internal and external reviews, according to the WSJ. But the more immediate concern was responding to the newspaper’s lengthy takeout itself.

Business Dealings

The story by AnnaMaria Andriotis mentions that, either before or soon after joining Goldman Sachs, Ruemmler disclosed to the bank her business dealings with Epstein from when she was a white-collar defense lawyer at a major law firm. But subsequent reporting, including a 2023 WSJ article, revealed that the connection went further than was originally known.

For example, Ruemmler was in the courtroom when Epstein was arraigned on sex-trafficking charges in 2019; she met with him dozens of times (disclosed when his calendar was released); she was named a backup executor in one version of his will, which was released in September; and she — as the WSJ put it — “exchanged friendly emails” with him for years, as revealed in a trove of emails released in November.

Epstein, who in 2008 pleaded guilty in Florida to procuring a minor for prostitution, was found dead in his New York City jail cell in 2019 while he was awaiting trial on new charges.

‘Completely Untrue’

The real “news” of the WSJ article, citing “people familiar,” is that Goldman Sachs Executive VP John Rogers “recently told a few close associates he was formulating a contingency plan in which [Ruemmler] would leave later this year.” That would allow her a graceful exit. But Adriotis quotes a statement from Rogers responding to the allegation: “That is completely untrue.” It shows how in crisis communications you have to respond to these accusations point by point with the facts (or at least the facts as you see them).

Andriotis also got statements from Goldman Sachs spokesman Tony Fratto and Ruemmler herself.

The lengthy quotes from Fratto emphasized that the firm had done its due diligence and Ruemmler had disclosed her relationship with Epstein: “Before she accepted the offer to join Goldman Sachs, she proactively disclosed her association with Jeffrey Epstein and other high-profile clients and contacts who might attract media attention, so that the firm would be aware of them. The firm did its own diligence and was satisfied.”

Epstein Association

Interestingly, Ruemmler, 54, said she had an association with Epstein when “it was my job to engage with people and companies that had serious legal and public relations problems.” Just as everyone deserves a good lawyer, everyone deserves a good communicator. Ruemmler said that, although Epstein would refer clients to her and ask her advice, she never represented him.

It’s that type of detail that’s essential. Of course, people will debate the Ruemmler-Epstein ties for some time. Not everyone will agree on what Goldman Sachs should do, and apparently that debate is raging within the investment bank. Wisely, Ruemmler also said she regrets knowing Epstein and has “enormous sympathy for the victims of Epstein’s crimes.”

Photo Credit: ioda/Shutterstock

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