Goldman Sachs Keeps Bungling Crisis Management: Shareholder Revolt about Secret Service Prostitution Scandal and Advice Sought from Jeffrey Epstein?

 Sure, the glory days of public relations are over. But brand equity still counts a lot. And the value of that should be eroding at Goldman Sachs, all-too-loyal to its top lawyer Kathy Ruemmler. Shareholders push-back, among other pressure points, has already triggered her stepping down. But she's been allowed a genteel exit. That includes staying on the job until June 30, 2026. There was also the gush by the institution's CEO David Solomon in the official announcement.

But, now that nicely positioned and packaged soft landing should be blown up. Ruemmler should be sent packing now. And what about implications for compensation, including stock options? That is, if Goldman Sachs wants to remain credible to its constituents, especially shareholders. Today the stock price is down 13.22 (11:30 AM ET).

The latest and perhaps most damning snippet from the Epstein Files is what was just made public: Ruemmler's handling of non-public information back in 2012. It was related to the Secret Service's engagement with sex workers while setting up a security detail in the nation of Columbia prior to President Obama's appearance there. Ruemmler had already left her White House job during the Obama administration. Bloomberg Law reports:

"In a dozen or so exchanges that were sent ... she complained to Epstein about 'this secret service crap' and forwarded to him a draft email that contained detailed, nonpublic information about the behind-the-scenes role the White House Counsel’s office played in investigating the 2012 prostitution scandal."

Epstein provided edits.

Over in the UK the penalty for crossing lines in being a Friend of Jeffrey now involves legal action. Yes, former Prince Andrew has been arrested for alleged wrongdoing while in public office. This is the second type of legality in this scandal. More will probably follow.

Should the legal action in the US be a shareholder lawsuit against Goldman Sachs for alleged inadequate vetting when hiring Ruemmler and then allowing the fallout from the Epstein Files to continue delivering hits to the brand? 

In coaching I warn about brand erosion. Both individual and institutional. We have returned to the Friedman Doctrine of the primacy of shareholder value. 

Success is a mental game. Failure comes from being done in by the “committee” in your head.

Together, we liberate your thinking. Then we change your story. And, unleash success. Meanwhile, we focus on bringing in income. That puts you in a position of strength.

Intuitive Coaching. Special expertise with transitions, becoming a solopreneur and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. Zero risk.

Don’t give up before the miracle. 



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