Read the full memo Goldman Sachs just sent to staff announcing its new head of regulatory affairs. The former White House counsel will be tasked with helping clean up the bank’s 1MBD drama.

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  • Goldman Sachs has named Kathryn Ruemmler as its new global head of regulatory affairs, according to an internal memo reviewed by Business Insider.
  • Ruemmler joins as a partner and becomes the 34th member of CEO David Solomon’s management committee, Goldman’s most powerful decision-making group. 
  • Goldman Sachs is engaged in discussions with global authorities, including the Justice Department, over its role in selling debt for the Malaysian sovereign wealth fund.
  • Click here for more BI Prime stories.

Goldman Sachs has named a new head of regulatory affairs, bringing in a woman with considerable government experience and political connections as a partner and member of the management committee. 

The bank said Kathryn Ruemmler will start later this month and become the 34th member of the company’s management committee. Ruemmler joins as a partner from elite law firm Latham & Watkins LLP, where she chaired the firm’s white collar defense and investigations practice. 

Prior to joining Latham in 2014, Ruemmler served in the Obama administration, in roles at the Department of Justice and in the office of the president. She will work with John Rogers, the firm’s chief of staff and a longtime player in Washington circles, on the firm’s regulatory agenda, according to the memo.  

Ruemmler will oversee Michael Richman, an almost three-decade veteran who gets a promotion to chief compliance officer. Richman had been helping to set strategy and oversee operations in the compliance function. 

Goldman Sachs is engaged in discussions with global authorities, including the Justice Department, over its role in selling debt for the Malaysian sovereign wealth fund known as 1MDB. The Wall Street Journal reported in December that the firm was in talks to pay a settlement of less than $2 billion and admit guilt. Nothing has been announced since. 

Goldman CEO David Solomon has been filling out his management committee since taking the top job in October 2018. In the time since, he’s added roughly a dozen new people to the firm’s most powerful governing body. 

Here’s the full text of the memo: 

We are pleased to announce that Kathryn H. Ruemmler will join the firm this month as global head of Regulatory Affairs and a member of the Management Committee.  In this capacity, Kathy will oversee the management of the firm’s regulatory infrastructure, including Goldman Sachs’ interactions with banking regulators, securities regulators and supervisory authorities globally. Kathy will also be responsible for overseeing the firm’s compliance policies and procedures.

Kathy will join John Rogers as co-chair of the Regulatory Reform Steering Group, and will work closely with him on the firm’s regulatory agenda.  She will also join Gwen Libstag as co-vice chair of the Firmwide Reputational Risk Committee.

Michael Richman will become chief compliance officer and report to Kathy in that capacity.  Michael has been with the firm for nearly three decades, and brings deep knowledge and invaluable expertise in risk management to his expanded role.  Most recently, he has helped set the strategy and manage the day-to-day operations of Global Compliance. 

About Kathy

Kathy brings to the firm significant experience in policy development, regulatory and agency enforcement matters, and corporate governance.  She joins Goldman Sachs from Latham & Watkins, LLP, where she served as global chair of the White Collar Defense & Investigations Practice and a partner in the Litigation & Trial Department. 

Kathy rejoined Latham & Watkins in 2014 after serving for almost six years in the Administration of US President Barack Obama, first in the Department of Justice and later as counsel to the President.  In that role, she provided counsel on all legal matters related to domestic and foreign policy and national security, and advised on all significant litigation matters, including key cases heard by the United States Supreme Court. Kathy also managed the administration’s response to congressional and other investigations, and was responsible for the selection and nomination processes of federal judges.

Prior to serving in the White House, Kathy was principal associate deputy attorney general at the Department of Justice, joining on the first day of the Obama Administration as its highest-ranking political appointee.  In that role, she was the deputy attorney general’s primary advisor on a range of criminal policy, law enforcement, national security and civil litigation matters. She worked closely with the attorney general and the deputy attorney general in the overall management and supervision of the Department of Justice, including the United States Attorney’s Offices.

Kathy is a fellow in the American College of Trial Lawyers. She worked for six years as a federal prosecutor, including as an assistant United States attorney in Washington, DC and as deputy director of the Enron Task Force.  Earlier in her career, Kathy served as associate counsel to President Bill Clinton, defending the White House and the Office of the President in independent counsel and congressional investigations.

Kathy began her career as a law clerk to Judge Timothy K. Lewis of the United States Court of Appeals for the Third Circuit.

About Michael

Previously, Michael held several leadership roles, including most recently as deputy head of Global Compliance, global head of Investment Management Division Compliance and global head of Private Wealth Management (PWM) Compliance. 

Prior to that, Michael served as co-legal director for the PWM Group in the US, senior counsel to GS.com and general counsel for Goldman Sachs Asset Management’s US Mutual Funds Group.

Michael joined Goldman Sachs in 1992 in the Legal Department.  He was named managing director in 2000 and partner in 2008.

Michael serves as co-chair of the Firmwide Suitability Committee and the Firmwide Volcker Oversight Committee.  He is a member of several additional committees, including the Firmwide New Activity Committee, the Firmwide Client and Business Standards Committee and the Firmwide Enterprise Risk Committee.

Please join me in welcoming Kathy to the firm, and in congratulating Michael on his expanded role.  I wish them both continued success.

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