Goldman Sachs to cough up $3.9bn to Malaysia in legal settlement
Goldman Sachs reached a $3.9bn settlement with the Malaysian government over a 2018 scandal involving the 1MDB fund.
Goldman Sachs Group Inc
$25.53
11:00 08/07/16
The Malaysian government announced on Friday that the deal includes a $2.5bn cash payout by Goldman and a guarantee by the bank that it will return at least $1.4bn in assets linked to an 1MDB bond.
The settlement involves a case that began in December 2018, when Malaysian prosecutors filed charges against the US investment bank for misleading investors over bond sales totalling $6.5bn that the bank helped raise for the 1MDB sovereign fund.
Goldman Sachs denied any wrongdoing.
“We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were far below expectations,” Finance Minister Tengku Zafrul Aziz said in the statement.
“We are also glad to be able to resolve this outside the court system, which would have cost a lot of time, money and resources,” he said, adding the deal would resolve all outstanding charges and claims against Goldman Sachs.