Kathryn Ruemmler, Goldman Sachs' former general counsel, testified before Congress in a closed-door hearing focused on the bank's relationship with Jeffrey Epstein. Ruemmler characterized Epstein as a "masterful liar" during her Wednesday appearance, according to reporting from the New York Times.
The congressional investigation centers on how Goldman Sachs managed its ties to Epstein and what due diligence the firm conducted before and during their business relationship. Goldman maintained banking relationships with Epstein entities over multiple decades, a connection that has drawn scrutiny from lawmakers examining whether major financial institutions adequately vetted high-net-worth clients with questionable backgrounds.
Ruemmler's testimony adds to a broader reckoning across Wall Street regarding client vetting and compliance failures. Her characterization of Epstein as deceptive suggests Goldman's leadership may argue that they were misled about the extent of his criminal activities and the sources of his wealth. The bank has faced questions about why it continued servicing accounts linked to Epstein even after his 2008 conviction for soliciting prostitution from a minor and his subsequent arrest in 2019.
Congress has been investigating whether major banks and financial institutions failed in their compliance and anti-money-laundering obligations by maintaining relationships with Epstein. The closed-door nature of Ruemmler's testimony indicates the hearing touched on sensitive internal bank communications and decision-making processes.
Goldman Sachs declined to comment on the specifics of Ruemmler's testimony but has previously stated it takes compliance seriously and cooperates fully with government inquiries. The bank has faced regulatory scrutiny and reputational damage from its Epstein connections, particularly given the timing of accounts opened and maintained by the firm.
This testimony represents a significant moment in congressional efforts to understand how Epstein operated at the financial system's core and what responsibility major institutions bear for enabling his activities. Lawmakers have used such hearings to pressure banks toward stronger client due diligence and accountability.