{"id":7358,"date":"2019-02-10T07:56:34","date_gmt":"2019-02-10T07:56:34","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/goldman-sachs-role-in-the-1mdb-scandal-in-300-words\/"},"modified":"2019-02-10T07:56:34","modified_gmt":"2019-02-10T07:56:34","slug":"goldman-sachs-role-in-the-1mdb-scandal-in-300-words","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/goldman-sachs-role-in-the-1mdb-scandal-in-300-words\/","title":{"rendered":"Goldman Sachs’ role in the 1MDB scandal – in 300 words"},"content":{"rendered":"\n
\n
<\/p>\n

\"GoldmanImage copyright<\/span>
\n Reuters<\/span><\/p>\n

<\/span><\/p>\n<\/figure>\n

The 1MDB corruption scandal has cast a shadow over Goldman Sachs, raising questions about how much the US investment bank knew about the misconduct.<\/p>\n

What is Goldman accused of?<\/h2>\n

The firm helped raise $6.5bn (\u00a35bn) for the Malaysian development fund, advising on three bond offerings in 2012 and 2013.<\/p>\n

Prosecutors allege more than $2.7bn was later embezzled, used to bribe government officials and buy luxury items.<\/p>\n

In November, Goldman’s lead banker on the deals, Tim Leissner, pleaded guilty<\/a> in US court to participating in the bribery and money laundering schemes.<\/p>\n

Malaysia’s attorney general then charged Goldman<\/a> with helping to “dishonestly misappropriate” money from the fund. <\/p>\n

He noted that the $600m Goldman earned for its work was “several times higher” than industry norms.<\/p>\n

The firm remains under investigation in the other countries, including the US, and is also facing lawsuits from investors.<\/p>\n

What does Goldman say?<\/h2>\n

Goldman says the Malaysia charges are “misdirected”.<\/p>\n

It says the firm’s compliance officers were deceived about aspects of the deal, including the role of Malaysian financier Jho Low, whom the bank had previously rejected as a client.<\/p>\n

<\/p>\n

Image copyright<\/span>
\n Getty Images<\/span><\/p>\n

<\/span>

Image caption<\/span>
\n
\n Tim Leissner, the former chairman of Goldman Sachs’ South East Asia operation, is married to model and fashion designer Kimora Lee Simmons
\n <\/span>
\n <\/figcaption><\/figure>\n

But news reports<\/a> have described the firm’s former chief executive, Lloyd Blankfein, meeting Mr Low and former Malaysian Prime Minister Najib Razak.<\/p>\n

Mr Leissner, Goldman’s South East Asia chairman until he left the firm in 2016, has said the decision to hide information from Goldman’s compliance officers was “very much in line” with company culture.<\/p>\n

What penalties could Goldman face?<\/h2>\n

Malaysian authorities are seeking fines of more than $3bn. <\/p>\n

Goldman has warned investors of the risk of “significant” penalties and increased the money set aside for legal liabilities to $1.8bn. <\/p>\n

As its legal costs surge, it has also said it will withhold millions due to some of its top executives, including Mr Blankfein, pending the outcome of the probes.<\/p>\n<\/p><\/div>\n


\n
Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright Reuters The 1MDB corruption scandal has cast a shadow over Goldman Sachs, raising questions about how much the US investment bank knew about the misconduct. What is Goldman accused of? The firm helped raise $6.5bn (\u00a35bn) for the Malaysian development fund, advising on three bond offerings in 2012 and 2013. Prosecutors allege more … <\/p>\n","protected":false},"author":0,"featured_media":7359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7358"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7358\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7359"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}