Goldman Sachs pays close to three billion over corruption scandal… In the corruption scandal surrounding the Malaysian sovereign wealth fund 1MDB, Goldman Sachs accepts a payment of $ 2.9 billion. The bank could get some of the money back from previous bosses.
Goldman Sachs pays close to three billion over corruption scandal
The US bank Goldman Sachs has accepted a billion-dollar fine for its role in the corruption and money laundering affair at the Malaysian sovereign wealth fund 1MDB. Goldman will pay a total of $ 2.9 billion in a settlement with authorities in the United States, Great Britain, Singapore and other countries, the US Justice Department said.
In connection with the 1MDB scandal, Goldman Sachs has been accused of bribing government officials in Malaysia and Abu Dhabi with bribes of more than one billion dollars. The bank’s lawyers had previously pleaded guilty to the New York court on behalf of Goldman Malaysia for violating the Foreign Corrupt Practices Act.
The 1MDB fund was set up in 2009 to promote the economy of Malaysia, but ex-government members and dubious advisors are said to have embezzled most of the funds – allegedly with the help of former Goldman employees. The bank was involved in the issuance of bonds from the fund with a volume of 6.5 billion dollars and is said to have incurred excessive fees.
Another billions paid to Malaysia
At the end of July, Goldman Sachs had already agreed with the Malaysian government on a billion-euro payment. The deal includes a direct payment of $ 2.5 billion to the Malaysian state. Another $ 1.4 billion from 1MDB’s seized assets is set to be repatriated with assistance from Goldman Sachs and the US Department of Justice.
According to the “Wall Street Journal”, the bank wants to reclaim millions of dollars from current and former top managers who were responsible for the 1MDB affair. The current CEO David Solomon and his predecessor Lloyd Blankfein are also affected, the Finanzblatt reported, citing insiders. On the stock exchange, however, the billions fine was recorded calmly, the shares of Goldman Sachs hardly reacted.
Source for Goldman Sachs pays close to three billion over corruption scandal: https://www.spiegel.de/wirtschaft/unternehmen/goldman-sachs-zahlt-fast-drei-milliarden-dolalr-wegen-1mdb-skandal-a-4bd48684-7642-4296-ad9a-33f1d987957e