More than 30 executives from Goldman Sachs, including bank chief David Solomon and his predecessor, Lloyd Blankfein, have revised Malaysian debt management, which led to the criminal charges of two former bankers.
Wall Street Bank has helped Malaysian 1MDB sovereign wealth fund to sell a $ 6.5 billion bond between 2012 and 2013 two years ago when the Malaysian police arrested 1MDB offices to investigate allegations of mass fraud. According to a 2016 indictment, the US Department of Justice claimed that most of the money raised through Goldman was taken by Malaysian Finance Minister Jho Low, who spread everything from Beverly Hills property to Van Gogh's paintings.
The DoJ, which continues to reveal what sanctions any Goldman would face, imposed sanctions against former Goldman bankers, Tim Leissner and Roger Ng in connection with the deal. Mr Leissner pleaded guilty to a conspiracy to bribe money laundering and foreign officials. Mr Ng was arrested in Malaysia for similar charges.
The allegation also referred to the behavior of the alleged Italian director, who was named Goldman partner Andrea Vella. Mr. Vella was the head of the company's Asia Pacific Investment Banking Department as long as he became chairman of the unit for two weeks. After the allegations, they were released.
Mr. Vella, who enjoys the services of legal personality paid by Goldman because of his partner status, did not respond to inquiries.
Goldman refused to comment, besides claiming to review DoJ's announcements and cooperate with the investigation.
According to the company's insiders, the transaction was thoroughly screened as it affected not only the Malaysian sovereign wealth fund but also the Abu Dhabi, which was raised to buy bonds.
"There were two sovereign wealth … I've looked at all of this," said a banker who looked at the business. – You will not find out what happened. . . (was) because there was no proper level of supervision. "
He added: "Mr Blankfein and Mr. Solomon, Head of Investment Banking at Goldman between 2006 and 2012, and Gary Cohn, General Director of the Bank.
Another person familiar with the business approval process confirmed that over 30 people were reviewed by the bank. "There was no concern that the money was stolen," he said. "The concern was that this was a new sovereign trust fund, the concerns explicitly" understood (fundraising)? "
Goldman received nearly $ 600 million in fees for transactions. Rival bankers argued that heavy fees to pay for fundraising had to pick up red flags. The chief of the Malaysian Ministry of Finance said this week that Goldman is losing 9 to 11 percent of the funds raised.
The second in the transaction said that Goldman offered 1MDB's menu of fee structures and the fund selected the money that affected the US bank, which posed the biggest risk to its balance sheet. If the bond price had fallen, Goldman would lose the money.
Goldman insiders reduced the impact of the latest developments in the Asian investment banking business. One said that Mr Vella's customers had been relocated and that customers' response to the latest developments was "silenced". The US bank has already invented the strike and Malaysian business because of the scandal; customers in major Asian markets, including China and Japan, are not affected, said a Hong Kong-based Goldman Sachs source.
During Friday's trading in New York, the bank's shares rose slightly higher than before the news was dissolved. "I do not think Goldman Sachs investors would be a big deal, or will be," said Jeff Harte, analyst at Sandler O & # 39; Neill. "Some employees appear to have left the Goldman Sachs internal systems from 1MDB, apparently not positive but not terrible or widespread."
Robert Armstrong's New Report in New York