Goldman Sachs faces first criminal charges in 1MDB scandal
Malaysia turned up the heat on Goldman Sachs Group Inc., filing the first criminal charges against the American bank in relation to the 1MDB scandal. Authorities alleged that Goldman misled investors when the bank knew that proceeds from 1MDB bond sales it arranged would be misappropriated.
Goldman has blamed rogue employees for any wrongdoing in relation to 1MDB, a state-owned investment fund.
Goldman Sachs’s role raising about $6.5 billion for 1MDB in 2012 and 2013 has evolved into its thorniest scandal since the global financial crisis a decade ago triggered a public backlash against banks.
Malaysia is filing the charges against three of the bank’s units — Goldman Sachs International (U.K.), Goldman Sachs (Singapore) and Goldman Sachs (Asia) LLC — The Edge newspaper reported, citing charge sheets from the Kuala Lumpur court.
The $600 million Goldman earned from the bond issues dwarfed what banks typically make from government deals.
Article source: http://www.dailystar.com.lb/Business/International/2018/Dec-18/472037-goldman-sachs-faces-first-criminal-charges-in-1mdb-scandal.ashx