Breaking: Goldman and the Justice Depart have largely agreed on a fine of just under $2 billion to settle allegations that the Wall Street firm ignored red flags while billions of dollars were looted from its client, 1MDB.
wsj.com/articles/goldm…
wsj.com/articles/goldm…
The bank and U.S. officials have discussed a deal in which a Goldman subsidiary in Asia—not the parent company—would plead guilty to violating U.S. bribery laws, some of the people said.
Goldman raised $6.5 billion for 1MDB, much of which US authorities say was stolen by a Malaysian gov adviser, Jho Low, and two Goldman bankers. Prosecutors say the bank ignored warning signs about Mr. Low & the fund in pursuit of fees that eventually reached about $600 million.
At $2 billion, a 1MDB-related fine would be one of the largest levied by the Justice Dept against a bank since the mortgage settlements following the financial crisis. It is money Goldman can ill-afford as it struggles to boost revenue & is spending heavily on growth initiatives.
