Goldman Sachs agrees to pay more than $ 2.9 billion to resolve investigation into its 1MDB scam – tech2.org

Goldman Sachs agrees to pay more than $ 2.9 billion to resolve investigation into its 1MDB scam


Goldman Sachs CEO David Michael Solomon participates in a discussion on “Finance and Markets through Women Entrepreneurs” at the World Bank in Washington, DC on October 18, 2019.

Olivier Doulieri | AFP | Getty Images

Goldman Sachs agreed to pay more than $ 2.9 billion to regulators around the world, including record fines for violating US anti-corruption law, to explore its role in the international finance scandal.

The amount, topped by $ 2.5 billion, was agreed to be paid by the bank to the government of Malaysia earlier this year, according to the US Department of the UK, regulators in the US, UK, Singapore and elsewhere on Thursday Includes personal deals with. of Justice.

The bank’s parent company entered into a deferred prosecution agreement with the Department of Justice, which should allow it to avoid exiting certain business functions. Earlier on Thursday, the bank’s Malaysian subsidiary formally pleaded guilty to its role in the 1MDB debacle, admitting to one count of conspiracy to violate the Foreign Corruption Practices Act.

Brian C., Assistant Attorney General of the Criminal Division of the Department of Justice. “Goldman Sachs today acknowledged responsibility for its role in the conspiracy to bribe high-ranking foreign officials to underwriting bribery and other business related to 1MDB,” Rabbit said in a release. The declaration “Goldman Sachs is required to accept wrongdoing and pay approximately three billion dollars in penalties, fines and inconsistencies, the bank being responsible for this criminal scheme.”

The deal is the solution to a problem CEO David Solomon has held since taking over from predecessor Lloyd Blankefin two years ago. Goldman was accused of helping a corrupt Malaysian financier steal billions of dollars from a $ 6.5 billion 1MDB development fund that was supposed to help build the nation’s economy.

Instead, 1MDB funds were used by Malaysian financier Lo Tak Zhao to fund an epic spending spree, including a $ 250 million yacht, stake in the Martin Scorsese film “The Wolf of Wall Street” and worldwide assets Is included. US officials said on Thursday that at least $ 1 billion was used to bribe Malaysian and Abu Dhabi officials.

Goldman bankers charged fees of $ 600 million to facilitate bond deals in 2012 and 2013, funded by 1MDB, which fixed-income professionals called unusually high.

A deal with US agencies was expected to be in place since the beginning of 2020, but the case was reportedly dragged on as the bank sought to avoid being convicted in the case.

In July, Goldman signed a $ 3.9 billion deal with the Malaysian government to settle a criminal investigation over the bank’s role in the case. This included a cash payment of $ 2.5 billion and a bank guarantee that Malaysia would receive at least $ 1.4 billion from the seized assets.

This story is developing. Please check back for updates.

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