Goldman Sachs will pay nearly $ 3 billion for corruption scandal with his Malaysian daughter

Goldman Sachs will pay nearly $3 billion in penalties to resolve probes in 1MDB scandal

Goldman Sachs will pay nearly $ 3 billion for corruption scandal with his Malaysian daughter

Goldman Sachs’ Malaysian subsidiary has pleaded guilty to conspiring to violate US anti-bribery laws in a massive scheme involving the Southeast Asian sovereign wealth fund known as 1MDB.

Goldman agreed to pay the fine about $ 2.9 billion. About $ 1.3 billion of them will go to the Ministry Justice of the United States, which is the largest fine in history under the law «Foreign corruption». This law prohibits companies from giving bribes to foreign leaders..

«Greed is bad. Greed like this ultimately comes at a huge cost to society. Uncontrolled corrupt behavior undermines trust in state institutions and structures», – said William Sweeney, Assistant Director of Oversight, New York FBI Branch.

Goldman Sachs will pay nearly $ 3 billion for corruption scandal with his Malaysian daughter

Goldman sachs already settled the matter with Malaysian authorities, agreeing this summer on a $ 3.9 billion deal. As part of this settlement, Malaysia has pledged to end all criminal and regulatory procedures in the country related to Goldman, including those against the bank’s subsidiaries and some current and former directors..

Notably, Goldman, one of the richest and most influential financial companies in the world, recently posted profits for the first nine months of this year.. As of September 30, the bank had $ 153 billion, which is $ 20 billion than three months earlier..

Goldman Sachs will pay nearly $ 3 billion for corruption scandal with his Malaysian daughter

General director David Solomon said he was glad to leave corruption problems behind.

«But we will not forget the lessons learned from this situation. When a colleague knowingly violates corporate policy, or worse, the law, we must take responsibility and acknowledge the failure in the individual behavior of a number of employees.», – he added.

Goldman Sachs will pay nearly $ 3 billion for corruption scandal with his Malaysian daughter

The bank said that Solomon and other top executives will cut their commissions by $ 31 million by 2020 and the company will seek to make up for about $ 76 million paid or owed to three former Goldman executives involved in the bribery scheme.. In addition, the board of directors will return $ 67 million paid to executives from 2011 to 2013, including some retired executives such as the former general director Lloyd Blankfein.

At the center of the scandal – $ 4.5 billion, which, according to the US Department of Justice, was stolen from the sovereign wealth fund of Malaysia "1Malaysia Development Berhad" in 2012 and 2013.

The money was used to buy hotels, yachts and a jet plane, as well as to fund films such as «The wolf of Wall Street».

Goldman sachs arranged three major bond placements for the 1MDB fund, which raised a total of $ 6.5 billion and brought the bank about $ 600 million, according to court documents.

Involved in the scandal and former Prime Minister Malaysia Najib Razak, who was found guilty this summer on seven related charges. Malaysian Supreme Court pleads guilty to Razak in abuse of power, money laundering and criminal abuse of trust. Today he is waiting for the verdict.

Throughout the investigation and trial, Najib Razak denied his guilt and insisted that his political career was not over yet..

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