July 5, 2022

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1MDB scandal: Goldman Sachs admits biggest penalty ever in 1MDB scandal | International business news

1MDB scandal: Goldman Sachs admits biggest penalty ever in 1MDB scandal |  International business news
New York: Global Financial Titan Goldman Sachs Agreed to pay a fine of $ 9 2.9 billion to settle the charges 1 MDB Malaysia bribery scandal, US fined for corruption Department of Justice Announced Thursday.
U.S. Assistant Attorney General Brian C. Rabbit said Goldman “took responsibility” in the $ 1.6 billion bribery case, the largest ever recorded and making huge profits through the U.S. economy.
Goldman Sachs has raised $ 6.5 billion for the Malaysian government’s Sovereign Wealth Fund. The U.S. Justice Department said that between 2009 and 2015, top executives and their associates at the fund stole more than $ 4.5 billion from 1Mdb.
The investment fund was looted by corrupt officials and their conspirators, turning it into a piggy bank for corrupt government officials and their allies, including senior Goldman bankers, “Rabbit told a news conference.
The Malaysian unit of the company pleaded guilty in a US court on Thursday to violating American bribery law as part of an agreement to end a criminal investigation into a sweeping case involving officials in nine countries.
An erroneous request could reduce Goldman Sachs’ operations in Malaysia, but allow the parent company to avoid admitting mistakes in court – damaging its ability to do business.
The parent company pleaded not guilty in U.S. court and agreed to a “postponed prosecution” for three and a half years, during which time the company faces oversight by regulators.
Despite the deal, the company has been charged in the bribery scandal, so Goldman has “substantial criminal liability” and “imposes significant consequences” in the cases, Rabbit stressed.
The Justice Department has indicted three people, including two former Goldman executives, in the case. Former Southeast Asia chairman Tim Leisner has pleaded guilty, while NG Chong Hwa, also known as “Roger NG”, the former head of investment banking for GS Malaysia, is awaiting trial and has fled Lo Take Ho.
Goldman admitted today that he conspired with Techho in Leisner, NG, Employee 1 and others to pay bribes and ignore red flags.
In another spectacular turn, the company is seeking a refund of $ 174 million in salaries and bonuses paid to current and former executives, including the chief executive. David Solomon And his predecessor Lloyd Blankfein.
These clubbacks are almost unheard of in corporate cases.
Solomon said in a statement that “it is very clear that some former employees have violated the law, lied to our colleagues and violated company regulations.” “We recognize that red flags have not been adequately addressed.”
Including the total penalty amount, Goldman pays a fine of $ 400 million to the SEC and reimburses $ 600 million in revenue and pays a fine of $ 4,154 million to the Federal Reserve, thereby improving the company’s risk management and internal monitoring.
The Malaysian government dropped the charges against Goldman in July after reaching a $ 3.9 billion deal with the financial giant.
The company, which made $ 3.5 billion in profits in the latest quarter, set aside more than $ 3.1 billion “for litigation and regulatory action” as of Sept. 30.
Goldman shares ended 1.2 percent higher in US trading after resolving uncertainty.
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