Goldman Pays $2 Billion to Settle 1Malaysia Development Berhad Scandal, Reuters

$2 billion only represents 0.2% of their total assets or 2.12% of their cash holdings. It’s the equivalent of losing 1 quarter in net income, which is nothing to them; a slap on the wrist..

In or around the end of May 2012, near the closing of Project Magnolia, Leissner actively worked with another senior executive of Goldman Sachs and Low to divert some of the bond proceeds that Goldman Sachs raised from Project Magnolia into the bank accounts of shell companies that Leissner, the other Goldman Sachs senior executive and Low beneficially owned and controlled. These individuals understood and expected to keep some of the diverted funds for their personal use, and that other funds would be used to pay bribes and kickbacks to government officials in Malaysia and Abu Dhabi and elsewhere in exchange for their assistance in obtaining and retaining business for Goldman Sachs in connection with Project Magnolia”.

(Reuters) – “Goldman Sachs Group Inc is in talks with the U.S. government and a state regulator to possibly pay up to $2 billion and admit guilt to resolve investigations into its role in the 1MDB Malaysian corruption scandal, according to a source familiar with the matter”. Read more

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