New York, Feb 13, 2026, 10:49 EST — Regular session.
Goldman Sachs Group Inc shares dropped roughly 0.7% to $898.00 on Friday following news that chief legal officer Kathy Ruemmler is resigning as questions mount over her previous connections to Jeffrey Epstein. Shares touched a low of $869.80 before trimming some of the decline, with trading volume hitting about 1.1 million shares.
The resignation hits financial stocks during an uneasy session, as traders revisit their interest-rate bets following a milder inflation print. The Consumer Price Index was up 0.2% in January, a notch below the 0.3% economists had penciled in. Core CPI, which leaves out food and energy, advanced 0.3%.
Big banks were already reeling from Thursday’s sharp drop, even before Goldman’s own headline landed. The S&P 500 slumped 1.57%, while the Nasdaq lost nearly 2% as traders dialed back exposure to riskier stocks, spooked by fresh chatter about AI shaking up the landscape. “We see this as a ‘prove it’ year for AI,” said Jack Herr, primary investment analyst at GuideStone Funds. Reuters
Ruemmler announced in a statement that she’s stepping down as chief legal officer and general counsel effective June 30. According to AP, Goldman has a policy requiring staff to get preapproval for gifts, aiming to sidestep conflicts of interest and anti-bribery concerns.
David Solomon, the chief executive, described her resignation as something he “reluctantly accepted,” telling CNBC the media scrutiny was turning into too big a distraction for the company. “I respect her decision,” Solomon added. Reuters
The Justice Department’s disclosures have traced years of email correspondence and gift giving between Ruemmler and Epstein—she called him “Uncle Jeffrey” in some messages, according to the Irish Times. Ruemmler has since said she wishes she’d never met Epstein, expressing “sympathy and heartache” for his victims. The Irish Times
Goldman shares wrapped up Thursday at $904.55, a notable drop from Wednesday’s $944.59 close. The stock bounced between a session high of $968.39 and a low of $903.98, Yahoo Finance historical data shows.
Large financial stocks took a hit in a rough session: Morgan Stanley dropped 4.88%, Goldman sank 4.24%, and Bank of America shed 2.47%, according to MarketWatch data.
Goldman’s action carries added weight for index trackers: the Dow is price-weighted, so pricier stocks have more sway. Each $1 change in any Dow name nudges the index about 6 points. A big move in Goldman shows up fast in the Dow’s headline numbers.
Inflation isn’t a one-way street for banks. A Reuters Breakingviews piece pointed out that softer headline CPI figures leave the door open for rate cuts, though analysts noted some stubborn spots in the data. “Core services (excluding shelter) remains strong,” Josh Jamner observed. Phil Orlando, on the other hand, took the report as a sign that rate easing remains on the table. Reuters
Investors are waiting for clarity on Goldman’s plans to fill the general counsel spot after Ruemmler steps down June 30, and watching to see if more Epstein documents come out. The macro calendar is anchored by the Federal Reserve’s policy meeting March 17-18—rate decision and press conference both set for March 18.
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