Home / news / Goldman pays about $ 3 billion to settle charges over the corruption of the Malaysian Fund

Goldman pays about $ 3 billion to settle charges over the corruption of the Malaysian Fund

Investment bank Goldman Sachs agreed Thursday to pay about $ 3 billion to settle the ongoing investigations into its role in the Malaysian fund corruption scandal (1MDB).

And his Malaysian unit agreed to plead guilty to violating foreign bribery laws, thus turning the bank over the page of a crisis that has plagued it for years.

The settlement ends – according to Reuters – investigations that were being undertaken by the US authorities regarding the bank’s role in ensuring coverage of 3 bond issues in 2012 and 2013 that generated $ 6.5 billion for the Malaysian government.

Under the terms of the settlement, Goldman was fined $ 2.3 billion, in addition to being obligated to return about $ 600 million.

The case damaged the reputation of one of the largest US investment banks, and analysts say today’s settlement will allow CEO David Solomon to accelerate his plan to convert Goldman into a more conventional bank.

Goldman Malaysia said in a court hearing that it would plead guilty to violating the Foreign Corrupt Practices Act in connection with the scandal.

The move follows a $ 3.9 billion settlement the bank reached with Malaysia in July to drop all charges against it in connection with that case.

The scandal dates back to the government of former Malaysian Prime Minister Najib Abdul Razzaq, which established the fund in 2009.

The Justice Ministry says senior fund officials and their partners embezzled an estimated $ 4.5 billion between 2009 and 2014. In November 2018, the US Department of Justice brought criminal charges against two former Goldman Sachs bankers in connection with the scandal, Tim Lesnar and Roger Neg.

The investment bank has been subject to regulatory investigations in at least 14 countries, including the United States, Malaysia and Singapore. According to the US Department of Justice, Goldman earned $ 600 million in fees from working with the Malaysian fund. Lesnar, Nage, and others received generous bonuses related to that sum.




Source link

Leave a Reply