A sketchy scheme made Goldman Sachs pay
Big day today for Goldman Sachs and the Government of Malaysia, as they settled outside the court, the conflict regarding the criminal and regulatory proceedings concerning 1 Malaysia Development Berhad (1MDB).
Back in 2018, the Malaysian prosecutors filed charges against three Goldman Sachs units for misleading investors over $6.5 billion worth of bond sales, which was meant to fund the sovereign wealth fund 1MDB.
Goldman Sachs pleaded not guilty and denied any wrongdoing. From the group's point of view, various Malaysian government members and 1MDB lied about the future use of proceeds obtained from bond sales. According to both sides, roughly $4.5 billion got stolen from 1 Malaysia Development Berhad. The scheme involved the former prime minister of Malaysia – Datuk Seri Najib Razak and Goldman Sachs, and other culprits.
Goldman Sachs and the Malaysian government reached an “in-principle agreement” and settled for $3.9 billion that must be paid by the American group. Moreover, Goldman agreed to help the government to appoint an asset recovery specialist. However, the settlement doesn’t resolve other governmental and regulatory investigations that involve 1MDB.
Today, the stock price increased by 0.2%. This year, Goldman Sachs lost 11.7%, while USA30 slipped 6.6%.
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Sources: malaymail.com, marketwatch.com
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