Kathryn Ruemmler Digs In at Goldman, Complicating Search for Next General Counsel

When Goldman Sachs GS -0.07%decrease; down pointing triangle general counsel Kathryn Ruemmler decided she would be stepping aside after coverage of her ties to Jeffrey Epstein had grown too burdensome, executives expected they had put a distraction behind them.

They hadn’t. 

Ruemmler didn’t leave Goldman at the end of June and is instead staying on in an advisory role and to help the transition to her successor, the bank told employees last month. That decision reignited concern among some inside the bank and has complicated the effort to find a successor, according to people familiar with the matter.

Ruemmler has been vetting candidates for her old job and has left some people with the impression that the acting general counsel might not be ready for the top job, these people said. Some external candidates are wary of taking the role because it is unclear how long Ruemmler will stay on and in what capacity, they said.