{"id":7849,"date":"2026-02-14T12:30:00","date_gmt":"2026-02-14T12:30:00","guid":{"rendered":"https:\/\/friscotimes.org\/?p=7849"},"modified":"2026-02-17T22:44:10","modified_gmt":"2026-02-17T22:44:10","slug":"the-epstein-files-reveal-an-alarming-truth-about-corporate-america","status":"publish","type":"post","link":"https:\/\/friscotimes.org\/?p=7849","title":{"rendered":"The Epstein files reveal an alarming truth about corporate America"},"content":{"rendered":"\n

Two weeks after the U.S. Justice Department\u2019s latest batch of 3 million Jeffrey Epstein files revealed the business elite\u2014from Hollywood to New York to Dubai<\/a>\u2014who were friendly with the late, disgraced financier, the corporate world is still sifting through his murky paper trail. And boards and business leaders are facing tricky questions as they decide how to dole out consequences for executives who were Epstein\u2019s close confidants even after he was convicted of sex crimes in 2008 and registered as a sex offender.\u00a0<\/p>\n

\n

Among the thorny questions they\u2019re asking: Who knew what, and when? Did an executive commit a crime or just exhibit bad judgment? And to what standard do we hold leaders in a society that has developed a high tolerance for scandal?\u00a0<\/p>\n

Now, we are starting to get answers\u2014and some corporate heads are starting to roll.\u00a0<\/p>\n

On Thursday, Goldman Sachs said general counsel Kathryn Ruemmler will leave the bank<\/a> in June after the documents showed she stayed in close contact with Epstein until 2019, at one point calling him \u201cUncle Jeffrey\u201d as she thanked him for high-end gifts. And on Friday, Dubai-based logistics group DP World named a new chair and new CEO, signaling the departure of Sultan Ahmed bin Sulayem<\/a> whose emails with Epstein included references to sexual experiences. Both ousters followed earlier resignations in the U.K. public sector, namely those of former U.S. ambassador Peter Mandelson<\/a> from the House of Lords and Morgan McSweeney, Prime Minister Keir Starmer\u2019s chief of staff who\u2019d advised on Mandelson\u2019s appointment<\/a>.<\/p>\n

But if Ruemmler and Sulayem have faced professional consequences for their association with Epstein, many others have not. The slow, cautious-to-the-point-of-tepid response of the business world to its leaders\u2019 chummy correspondence with a known sex offender reveals a confounding aspect of the Epstein saga: The documents released so far don\u2019t offer proof that all of his correspondents engaged in criminal behavior. And that gray area can make inaction the most palatable approach in a corporate governance environment in which poor judgment\u2014even exceptionally poor judgment\u2014is not automatically a fireable offense.<\/p>\n

Corporate consequences come unevenly<\/h2>\n

There\u2019s public pressure on companies that employ people named in the Epstein files to act. Questions like \u201cWhy haven\u2019t they been fired?\u201d or \u201cWhy weren\u2019t they fired sooner?\u201d are being asked online, by customers and by clients.\u00a0<\/p>\n

But whether bad judgment costs someone their job is not black-and-white; it often comes down to a cost-benefit analysis on the part of people with hiring and firing authority, says Jill Fisch, a professor of business law at the University of Pennsylvania\u2019s Penn Carey Law School: \u201cSo bad judgment, but weighed against whatever we think the virtues or advantages or strengths of this particular person are.\u201d (Ruemmler, former counsel to Bill Clinton and Barack Obama, was seen as a superstar.)<\/p>\n

And there are a few other factors tipping the scales in favor of Epstein\u2019s associates. For one, the number of business elites in Epstein\u2019s network is now so vast that public outrage and pressure on CEOs and boards to act are spread thin. \u201cIt\u2019s kind of an obvious thing for a board to feel like, \u2018Gee, lots of top executives, lots of respected people in industry and finance had some sort of connection [to Epstein]. Therefore, we don\u2019t expect them all to be shunned from industry,\u201d Fisch says.<\/p>\n

There might also be a desire among decision-makers to be more deliberate in defenestrations than during the MeToo era, when corporate cancellations were swift and arguably, in some cases, rash. \u201cThere was a time, possibly, when our instinct to cancel people was overly zealous, and this, in part, might be that we don\u2019t want to keep doing that,\u201d Fisch explains.\u00a0<\/p>\n

And then there\u2019s an overarching sense in these times that \u201cscandalous, unethical behavior today is just another story, and we kind of move on from it,\u201d says N. Craig Smith, chair in ethics and social responsibility at the business school INSEAD. In the past, he says, \u201cpeople would be fired for appearances. People [were] fired for doing stuff in their private lives that reflect badly on the company.\u201d But now, Smith argues, the business world is following the example set by the Trump White House, which has brushed off <\/strong>numerous controversies that might have imperiled past administrations, including its own ties to Epstein.\u00a0<\/p>\n

\u201cThere\u2019s sort of mimicking,\u201d he says. \u201cThere\u2019s sort of an environment where stuff that previously would have been sanctioned is no longer being sanctioned.\u201d\u00a0<\/p>\n

Sometimes optics, not rules, decide the consequences<\/h2>\n

Of course, these questions apply to only a subset of figures in Epstein\u2019s orbit; there\u2019s a whole other class who seem to answer to no one: the Elon Musks<\/a>, Bill Gateses<\/a>, and Reid Hoffmans of the world. (These multibillionaires all deny<\/a> any<\/a> wrongdoing.)<\/p>\n

And even Ruemmler\u2019s departure seems to have been her own decision. She told the Financial Times<\/em><\/a> that \u201cthe media attention on me, relating to my prior work as a defense attorney, was becoming a distraction.\u201d Goldman has stood by Ruemmler publicly, with CEO David Solomon praising her as \u201cone of the most accomplished professionals in her field\u201d and declaring that \u201cshe will be missed.\u201d\u00a0<\/p>\n

To be sure, top-down accountability is not the only kind. Many of Epstein\u2019s allies are suffering reputational damage: Paul Weiss chairman Brad Karp (who once called Epstein \u201camazing\u201d<\/a>) stepped down from his leadership role after a revolt by his peers<\/a>, and clients of the Wasserman talent agency, like Chappell Roan<\/a>, are leaving owing to founder Casey Wasserman\u2019s ties to Epstein\u2019s network. (Wasserman is reportedly putting his firm up for sale<\/a>.) On Monday, Thomas J. Pritzker stepped down<\/a> from his role as executive chairman of the Hyatt Hotels Corp., saying he had \u201cexercised terrible judgment\u201d in staying friends with Epstein. So it\u2019s possible that consequences for associating with Epstein may still be doled out\u2014in one form or another.<\/p>\n

Whatever the reasons, the business world\u2019s apparent reluctance to take its own swift, decisive action against Epstein\u2019s inner circle risks setting the moral bar so low\u2014where illegal acts are the only disqualifier\u2014that it dissolves what little public trust the sector has left.\u00a0<\/p>\n

\u201cNobody has a right to be a CEO or a managing partner of a huge law firm; that\u2019s an enormous privilege,\u201d says Archon Fung, professor of citizenship and self-government at the Harvard Kennedy School. \u201cPart of why you\u2019re elevated to that position is people think you have really good judgment, certainly about the business part. So is it appropriate in society to say, well, judgment about character and standards of behavior is an important part of what we demand of these people? So far, in the U.S., the answer seems to be no.\u201d<\/p>\n

Update, Feb. 17, 2026<\/em>: This article has been updated to add the news of Thomas J. Pritzker stepping down from his executive chairman role at Hyatt Hotels Corp.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Two weeks after the U.S. Justice Department\u2019s latest batch of 3 million Jeffrey Epstein files revealed the business elite\u2014from Hollywood to New York to Dubai\u2014who were friendly with the late,…<\/p>\n","protected":false},"author":818,"featured_media":7850,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[6],"tags":[8693,547,3445,5533,1723,1280,3203],"jetpack_publicize_connections":[],"yoast_head":"\nThe Epstein files reveal an alarming truth about corporate America - Frisco Times<\/title>\n<meta name=\"description\" content=\"In business, bad judgment is not always a fireable offense.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/friscotimes.org\/?p=7849\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Epstein files reveal an alarming truth about corporate America - 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