Goldman Sachs and Malaysia reach $3.9 billion settlement over 1MDB scandal

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Goldman Sachs and Malaysia reach $3.9 billion settlement over 1MDB scandal

Earlier on Friday, the Malaysian Government said in a statement that it had reached a $3.9 billion settlement deal with New York City-based US lender Goldman Sachs which in effect would obliviate the criminal charges against the American multinational lender over bond sales that raised money for the scandal-hit 1MDB sovereign wealth fund.

In point of fact, following year-long legal debate, both Malaysian and US prosecutors had ruled that the 1MDB bond sales organized by the Goldman Sachs, which was initiated to accelerate the Southeast country’s economic development, had provided with several loopholes for the associates of ex-PM Najib Razak which had been exploited over several years to steal billions of dollars.

Besides the ex-PM Najib had been on trial over several corruption charges including the 1MDB scandal following his ousting in May 2018 election, while Goldman Sachs alongside two of its former executives had been charged later last year over accusations of alleged breach of securities laws such as misleading the investors on 1MDB bonds and another seventeen present and former employees of Goldman Sachs had also been sued last year over their active participations in 1MDB frauds.

Goldman agrees to pay $2.5 billion in cash and guarantees $1.4 billion from assets bought with the dirty money

Aside from that, earlier on the day, the Malaysia’s Finance Ministry was quoted saying in a statement that the US multinational lender had agreed to lay off a stark sum of $2.5 billion in cash and another $1.4 billion from the assets purchased through the bond money which had been seized all over the world later last year in exchange for dropping the lawsuits against Goldman Sachs alongside its former and current employees, while the Finance Ministry had also added that the revamped deal had been a steep jump from Goldman’s prior offerings of $1.75 billion made in 2019 aimed at avoiding costly and protracted legal battles.