Goldman to settle Justice Department's 1MDB probe for more than $2 billion: report
By Mike Murphy
Bank could end up paying around $5 billion for role in Malaysian scandal
The deal, expected to be announced in the coming days, will let the bank avoid a criminal conviction, Bloomberg reported (https://www.bloomberg.com/news/articles/2020-10-20/goldman-poised-to-pay-more-than-2-billion-in-doj-s-1mdb-probe?sref=Oeyjq8by).
In August, Goldman (GS)slashed its second-quarter earnings (https://www.marketwatch.com/articles/goldman-sachs-restates-profit-after-malaysia-1mdb-settlement-51596812162) after restating its figures to include a separate $3.9 billion settlement with the Malaysian government, including $2.5 billion that Goldman will pay directly to Malaysia.
The scandal has been a dark cloud of uncertainty over Goldman's finances for years, and could cost the investment bank around $5 billion between the two settlements.
The 1MDB scandal involved the theft of billions of dollars from Malaysia's state investment fund, which was allegedly laundered by then-Malaysian Prime Minister Najib Razak's associates. Razak was convicted on corruption charges in July (https://www.marketwatch.com/story/former-malaysian-leader-arrives-in-court-for-1mdb-corruption-verdict-2020-07-28). A number of Goldman Sachs executives faced criminal charges in Malaysia, but Goldman claimed they were acting on their own and that it had no knowledge of their actions.
-Mike Murphy; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 19, 2020 23:25 ET (03:25 GMT)
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