July 24

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Goldman Sachs, Malaysia agree to US$3.9b settlement over 1MDB

Malaysia on Friday said US investment bank Goldman Sachs has agreed to a US$3.9 billion (RM16.6 billion) settlement with the government over the multi-billion dollar 1MDB scandal.

The logo of Dow Jones Industrial Average stock market index listed company Goldman Sachs (GS) is seen on the clothing of a trader working at the Goldman Sachs stall on the floor of the New York Stock Exchange

The logo of Dow Jones Industrial Average stock market index listed company Goldman Sachs (GS) is seen on the clothing of a trader working at the Goldman Sachs stall on the floor of the New York Stock Exchange, United States April 16, 2012. REUTERS/Brendan McDermid/File Photo

The deal includes a US$2.5 billion cash payout by Goldman and a guarantee by the bank to return at least US$1.4 billion in assets linked to 1MDB bonds, Malaysia’s finance ministry said in a statement.

Malaysian prosecutors filed charges in December 2018 against three Goldman Sachs units for misleading investors over bond sales totalling US$6.5 billion that the bank helped raise for sovereign wealth fund 1MDB (1Malaysia Development Bhd).

Goldman Sachs has consistently denied wrongdoing, saying that certain members of the former Malaysian government and 1MDB lied to it about how proceeds from the bond sales would be used.

The units of Goldman Sachs have pleaded not guilty to the charges.

The US Department of Justice has said around $4.5 billion was misappropriated from 1MDB. — Reuters

Source: https://www.malaymail.com/news/malaysia/2020/07/24/goldman-sachs-malaysia-reach-settlement-agreement-over-1mdb-say-sources/1887767