Goldman Sachs set to pay $3.9b for 1MDB scandal
Goldman Sachs is set to pay $3.9 billion as a settlement over its role in the 1MDB scandal in Malaysia.
The deal includes a $2.5 billion cash payout and a guarantee to return a minimum of $1.4 billion in proceeds from assets linked to the sovereign wealth fund.
In return, all criminal charges against the bank, which had pleaded not guilty and consistently denied wrongdoing, will be dropped by Malaysia.
The settlement is the largest Malaysia has obtained so far in its initiative to recover funds allegedly stolen from 1MDB, and is considered a victory for the four-month-old administration of Prime Minister Muhyiddin Yassin.
Goldman Sachs’ shares climbed 0.68 per cent in New York morning trading on the Malaysia news and signals that the US Department of Justice could be closer to closing a similar probe.