Long-serving Goldman Sachs co-general counsel Gregory Palm is retiring from his role, with fellow co-GC Karen Seymour taking on sole leadership of the investment bank's legal team.

In an internal memo sent to employees on Wednesday (9 January), Goldman CEO David Solomon said that Palm, 70, will become a senior adviser to the firm.

Palm joined Goldman Sachs in 1992 as co-general counsel and a partner of the firm. In 1999, before the firm's initial public offering, he was made a member of its management committee. He is also a member of Goldman's reputational risk committee, according to the memo.

"After 27 years of distinguished service, Greg Palm has decided to retire as the firm's co-general counsel," Solomon said in the memo. "I am very pleased that he is becoming a senior adviser to the firm, where the firm will continue to leverage his deep legal, regulatory and compliance knowledge."

Palm was not available for comment on Wednesday.

In the memo, Solomon praised Palm for his years of service and helping to grow the firm and build its legal department.

"His keen intellect, measured temperament and strong strategic sense have been the basis for effective advice and counsel to many of the firm's senior leaders," Solomon said in the memo. "He has played a central role in a number of events and transactions with significant legal implications, particularly during a period of considerable scrutiny."

Seymour, who joined Goldman in December 2017 from Sullivan, will now take over as sole general counsel.

"Karen Seymour will become the firm's sole general counsel and continue to advise us and have responsibility for all legal matters affecting our operations worldwide," Solomon said.

As sole GC, Seymour will have to deal with a scandal involving the Malaysian government. In November, The New York Times reported that Tim Leissner, a former Goldman banker, told a federal judge he allegedly worked with other Goldman employees to prevent employees in the legal and compliance departments from learning about bribes that were accepted so that the firm could manage the 1Malaysia Development Berhad investment fund. In a November SEC filing, the firm said it is cooperating with the Department of Justice's investigation.