1MDB scandal could hit top executives, says Goldman Sachs

by   |  VIEW 392
1MDB scandal could hit top executives, says Goldman Sachs

On Friday, the 1st of February, 2019, the board of Goldman Sachs Group Inc. said that they would be withholding a bonus worth of $7 million from a former chief executive, Lloyd Blankfein, until the investigations of Malaysian authorities regarding the bank’s connection in the 1MDB were completely resolved.

Besides, the bank had also been working on a new provision of penalization under its annual compensation plans for both of its senior-most executives connected to the 1MDB investigations, including its current Chief Executive, David Solomon and a former head, Blankfein.

The Goldman Sachs has currently been investigated by Malaysian authorities and US Department of Justice on its role as arranger and underwriter of three bond sales for 1 Malaysia Development Berhad (1MDB), which generated around $6.5 billion.

According to the US Justice Department, a total of $4.5 billion could have been misappropriated by high-level officials from 1MDB and their associates, between 2009 and 2014, which would also include some of the funds that Goldman Sachs had assisted to raise, although, the Goldman Sachs had repeatedly denied any allegation of wrongdoing on behalf of the scandal-sickened 1 Malaysia Development Fund.

On a regulatory filing on Friday, (February the 1st), the Goldman Sachs had been quoted stating that they could deduce the pay packages of some of their top executives, if the results of ongoing investigations on 1MDB would have impacted their year-end compensations.