Epstein Scandal Fuels Banking Reputation Crisis as Regulators Drop Risk Reviews

Jeffrey Epstein continued to conduct business through major banks after his 2008 conviction for sex crimes involving a minor. In 2023, JPMorgan reached separate settlements of $290 million and $75 million, while Deutsche Bank paid another $75 million settlement and a $150 million fine. The cases underscored that anti-money-laundering controls and senior-executive accountability are not merely matters of image.

The U.S. Justice Department released 3 million documents on January 30, 2026, about 8,400 of which involved Goldman Sachs Chief Legal Officer Kathryn Ruemmler. The files revealed that she accepted gifts and referred to Epstein as “Uncle Jeffrey.” On February 12, she announced that she would step down on June 30. The OCC and the Federal Reserve stopped examining banks for reputational risk on March 20 and June 23, 2025, respectively, raising questions about accountability.