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Goldman Is Said in Talks With U.S. to Settle Criminal Case Tied to Malaysia Investment Fund
By: TheStreet | December 19, 2019

• To settle the case, the New York investment bank would pay a fine of around $2 billion and accept the appointment of a monitor for its compliance procedures, reports say.

Goldman Sachs (GS) is negotiating with the U.S. government to settle a criminal investigation tied to a Malaysian corruption case, according to reports.


To settle the case with the U.S. Justice Department, the New York investment bank would pay a fine of around $2 billion and accept the appointment of an independent monitor for its compliance procedures, people familiar with the matter told Bloomberg and The Wall Street Journal.

Goldman's Asia subsidiary also would plead guilty to violating U.S. bribery laws, some of the people familiar with the matter told the Journal.

The case arose from Goldman's raising of $6.5 billion for a client, called 1MDB or 1Malaysia Development Bhd. 1MDB is a Malaysian-government-owned investment fund.

U.S. authorities said that much of that money was stolen by a Malaysian government adviser and two Goldman bankers, the Journal reported.

The authorities charge that the bank ignored warning signs about the adviser in an effort to garner fees of about $600 million, the report said.

Goldman is separately discussing a settlement with Malaysia, Bloomberg reported. The country publicly is demanding $7.5 billion from from Goldman, Bloomberg reported.

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