Wall Street bank’s legal liability in Malaysia’s multibillion dollar financial scandal is likely much larger than markets and analysts recognize
Goldman Sachs is under potentially punitive new legal pressure after Malaysian prosecutors filed criminal charges against 17 of its current and ex-executives, raising the stakes and new questions of institutional culpability in the multibillion dollar 1Malaysia Development Berhad (1MDB) corruption and money-laundering scandal.
Malaysian Attorney General Tommy Thomas said last week that custodial sentences and criminal fines would be sought against the accused, all of whom held key leadership positions across three of the bank’s subsidiaries. The charges were filed under a Malaysian law that holds senior executives responsible for any offenses that may have been committed during their tenure.
Those indicted “occupied the highest executive positions in those three Goldman Sachs subsidiaries, and exercised or ought to have exercised decision-making authority over the transactions of those corporate bodies,” which, Thomas said, were involved in the “fraudulent misappropriation of billions in bond proceeds.”
The newly accused include Richard Gnodde, chief executive of the US investment bank’s international subsidiary, Michael Evans, an ex-Goldman executive who is now president of Chinese e-commerce giant Alibaba, and 15 other current and former directors from the bank’s international divisions including in London and Singapore.
Nile Bowie is a writer and journalist with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
Goldman Sachs is under potentially punitive new legal pressure after Malaysian prosecutors filed criminal charges against 17 of its current and ex-executives, raising the stakes and new questions of institutional culpability in the multibillion dollar 1Malaysia Development Berhad (1MDB) corruption and money-laundering scandal.
Malaysian Attorney General Tommy Thomas said last week that custodial sentences and criminal fines would be sought against the accused, all of whom held key leadership positions across three of the bank’s subsidiaries. The charges were filed under a Malaysian law that holds senior executives responsible for any offenses that may have been committed during their tenure.
Those indicted “occupied the highest executive positions in those three Goldman Sachs subsidiaries, and exercised or ought to have exercised decision-making authority over the transactions of those corporate bodies,” which, Thomas said, were involved in the “fraudulent misappropriation of billions in bond proceeds.”
The newly accused include Richard Gnodde, chief executive of the US investment bank’s international subsidiary, Michael Evans, an ex-Goldman executive who is now president of Chinese e-commerce giant Alibaba, and 15 other current and former directors from the bank’s international divisions including in London and Singapore.
Read the full story at Asia Times.
