Goldman Sachs GS 1.68%
Group Inc. will pay $ 2.8 billion to the US government and admit wrongdoing in a Malaysian bribery scandal, settling fees from its work with a corrupt government investment fund.
According to people familiar with the case, a Goldman subsidiary in Asia has been convicted this week in a malpractice case. The parent company would accept an agreement that required him to admit the blame, but defied prosecution on the charges, the people said, avoiding a guilty plea that could have crippled his ability to do business.
The deal with the Department of Justice calls for Goldman to pay a fine of about $ 2.2 billion and pay approximately $ 600 million, although Goldman was able to offset some of that amount with fines paid to other officials and agencies Will, people said.
The deal does not require Goldman to have a compliance monitor, the people said, law enforcement officials sometimes ordered after the discovery of corporate malpractice or overspeed laps. These arrangements can cast a long shadow: Goldman is still doing quarterly updates on monitors installed in the wake of the 2008 mortgage crisis. The Wall Street Journal reported late last year that prosecutors were pushing for surveillance in the case.
The settlement’s total price tag is within the parameters the company indicated to shareholders and is largely baked into its 2020 financial results. Goldman had $ 3.2 billion set as of September 30 for regulatory regulatory and legal matters, most of which were earmarked for the Malaysian case.
Bloomberg News previously reported that the agreement was imminent.
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