1MDB and Goldman Sachs
About 1MDB and Goldman Sachs
The 1MDB scandal involved the Malaysian sovereign wealth fund being looted of 4.5 billion. Goldman Sachs arranged 6.5 billion in bond sales for 1MDB, earning 600 million in fees, far above normal rates. The money was diverted to Malaysian officials and their associates. Goldman banker Tim Leissner pleaded guilty and cooperated with authorities. Malaysian Prime Minister Najib Razak was convicted of corruption. The US Justice Department seized over 1 billion in assets including a yacht, real estate, and artwork. Goldman Sachs paid 2.9 billion in fines to various governments. The scandal damaged Goldmans reputation and raised questions about its compliance culture. Malaysian authorities dropped charges against Goldman subsidiaries in 2020 after settlement.
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