Goldman Sachs ready to pay up for its involvement in the 1MDB scandal
One of the biggest scandals from the international banking sector seems to have ended, as the world-renowned Goldman Sachs closed a settlement with regulators.
It all started in July when the bank settled outside the court a conflict about various criminal and regulatory proceedings regarding the 1 Malaysia Development Berhad (1MDB). Goldman was accused of helping an unprincipled Malaysian financier steal billions of dollars from the $6.5 billion 1MDB fund meant to help develop its economy. According to the filing, the money ended up in the hands of Low Taek Jho, who funded a $250 million yacht, he funded the production “The Wolf of Wall Street” and various properties around the world. Moreover, more than $1 billion from the stolen money was used to bribe Malaysian and Abu Dhabi officials.
Goldman pleaded not guilty and denied any wrongdoings, but it agreed to pay more than $3.9 billion in settlements and decided to help the Malaysian government repair the damages by hiring a specialist.
Now, Goldman agreed to pay over $2.9 billion to various regulators worldwide to resolve the probes in the international finance scandal that involved 1MDB. The charges include a penalty for violating also violating a US anti-corruption law.
The $2.9 billion consist of separated deals with regulators from the US, Singapore, the UK, and many more.
But this is not all! The Securities and Futures Commission (SFC) found severe deficiencies in how the Goldman Sachs L.L.C. (the Sachs’ Asian subsidiary) management contributed to the scandal that involves the Malaysian sovereign wealth fund. In a separate filing, Hong Kong regulators fined the bank $350 million.
Currently, Goldman Sachs stock price is trading 0.73% higher.
Read here about the $2 trillion scandal that involved some of the world’s largest banks!
Sources: reuters.com, cnbc.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com