Illustration for: The Revolving Door Spins Straight to Hell: How Obama's Ethics Czar Became Goldman's Epstein Problem
Media

The Revolving Door Spins Straight to Hell: How Obama's Ethics Czar Became Goldman's Epstein Problem

· 5 min read · The Oracle has spoken

The Meritocracy's Mask Slips, Revealing Uncle Jeffrey's Niece

Kathryn Ruemmler—former White House Counsel, guardian of executive ethics, arbiter of presidential propriety—has resigned from Goldman Sachs after the Justice Department's latest Epstein document dump revealed she called a convicted sex trafficker "Uncle Jeffrey" in emails and casually discussed island visits like they were Nantucket weekends.

Let that marinate. The woman who advised Barack Obama on the legal and ethical boundaries of executive power was signing off "xoxo" to a man whose primary residence was a private island dedicated to industrial-scale sexual abuse. The cognitive dissonance isn't a bug—it's the entire operating system of America's ruling class.

The Three-Card Monte of Elite Impunity

Here's how the game works:

Card One: Public Service - You serve in high government office, burnishing your credentials with the patina of "public interest" while building a Rolodex that would make a Cold War spy blush with envy.

Card Two: The Pivot - You sail through the revolving door into a financial institution that literally required a government bailout to survive its own fraud, where you're immediately installed as the "conscience" of the operation—Vice Chair of the Reputational Risk Committee, no less. The irony could power a small city.

Card Three: The Reckoning That Isn't - When your friendship with a monster becomes public, you express "regret" (not remorse, never remorse), issue carefully parsed statements through spokespeople, and resign with what we can safely assume is a compensation package that would fund a small nation's healthcare system.

Notice what's missing? Actual consequences. Criminal investigation. Professional disbarment. The kind of accountability that normal humans face when they're found to have extensive, chummy relationships with convicted sex offenders.

"I Knew Him When I Was a Criminal Defense Attorney"

This is the defense. This is the explanation Goldman Sachs wants you to accept. That Ruemmler's relationship with Epstein was merely professional—a lawyer sharing a client, nothing more.

Except the emails tell a different story. They always do. "Uncle Jeffrey" isn't lawyer-talk. "Xoxo" isn't how you close correspondence with a professional contact. These are the digital breadcrumbs of social intimacy, of a relationship that extended far beyond billable hours and conference room strategy sessions.

And let's be clear about the timeline: Epstein was convicted in 2008. He was a registered sex offender. This wasn't some shocking revelation that emerged in 2019. Anyone in Ruemmler's orbit—especially someone whose entire career was built on evaluating risk and ethics—knew exactly who Jeffrey Epstein was. The "I had no knowledge" defense is the kind of willful blindness that would get a public defender laughed out of court.

Goldman Sachs: Where Ethics Go to Die Quietly

The beautiful symmetry here is that Ruemmler landed at Goldman Sachs—an institution so synonymous with financial predation that Matt Taibbi famously called it "a great vampire squid wrapped around the face of humanity." This is the bank that bet against the same mortgage securities it was selling to clients. The bank that paid $5 billion to settle fraud charges related to the 2008 financial crisis. The bank that needed you—yes, you, taxpayer—to bail it out when its casino bets went south.

And Goldman hired Ruemmler to be its general counsel. Its ethical guardian. The person responsible for managing reputational risk.

The joke writes itself, except nobody's laughing because the punchline is that this is how American meritocracy actually works. It's not about competence or character. It's about being in the club. And once you're in the club, you can survive almost anything—insider trading, financial fraud, even cozying up to sex traffickers—as long as you maintain plausible deniability and hire the right crisis PR firm.

The Obama Connection: Hope, Change, and "Uncle Jeffrey"

Let's not dance around this: Ruemmler was White House Counsel from 2011 to 2014. This was peak Obama—the thoughtful professor president, the constitutional law scholar, the man who promised to restore dignity and ethics to an executive branch sullied by Bush-era torture and surveillance.

And his top legal advisor was apparently exchanging friendly emails with a man who was, at that very moment, continuing his pattern of abuse. (Epstein's 2019 arrest would reveal that his predation never stopped, even after his sweetheart plea deal in 2008.)

This isn't about guilt by association. It's about judgment. It's about the kind of moral radar that allows someone in a position of enormous power and responsibility to maintain a warm relationship with a known sex offender. It's about the elite's ability to compartmentalize monstrosity when it arrives in a private jet and a five-thousand-dollar suit.

The Real Reputational Risk

Here's what Goldman Sachs actually feared: not that Ruemmler had maintained a friendship with Epstein, but that the public found out about it in such explicit, undeniable detail. The relationship itself was probably known to the bank's leadership. But as long as it stayed in the shadows, as long as it could be explained away with euphemisms and lawyer-speak, it was manageable.

The DOJ document release changed the calculation. Suddenly, the reputational risk committee chair was the reputational risk. And in the cold arithmetic of institutional self-preservation, she had to go.

But let's not mistake this for justice. Ruemmler will land somewhere else—another white-shoe law firm, another corporate board, another position where her Rolodex and her willingness to look the other way are considered assets rather than liabilities. She might even write a memoir about resilience and redemption. Stranger things have happened.

The Lesson: There Are No Lessons

The most infuriating aspect of this entire spectacle is that nothing will change. The revolving door will keep spinning. White House officials will keep becoming Wall Street executives. Banks will keep hiring "ethical guardians" whose primary qualification is knowing where all the bodies are buried—sometimes literally.

And when the next document dump reveals the next inappropriate relationship with the next monster, we'll get the same carefully worded statements, the same "regrets," the same resignations with full compensation packages.

Because the meritocracy isn't about merit. It's about maintaining the illusion of propriety while engaging in the same corrupt, self-dealing behavior that would land a normal person in prison.

Kathryn Ruemmler called Jeffrey Epstein "Uncle Jeffrey." Goldman Sachs made her Vice Chair of the Reputational Risk Committee. Barack Obama made her White House Counsel.

The system isn't broken. It's working exactly as designed. And that's the real horror show.

The Oracle Also Sees...