Wall Street bank set to reach favorable but controversial US settlement in multi-billion dollar Malaysia scandal
When Mahathir Mohamad returned to power last year, the world’s oldest prime minister vowed to claw back billions of dollars plundered in a globe-spanning corruption scandal involving 1Malaysia Development Berhad (1MDB), a state fund co-founded by his ousted predecessor Najib Razak.
The 94-year-old Malaysian leader recently said he was hopeful that an out-of-court settlement could soon be reached with Goldman Sachs, the Wall Street investment bank now under global scrutiny for its role in underwriting three bond issuances that raised US$6.5 billion for 1MDB in 2012 and 2013.
But while Malaysian prosecutors continue their pursuit, US authorities are said to be close to resolving separate criminal and regulatory probes into the scandal, with a settlement on the cards that could see Goldman pay up to $2 billion in penalties.
If so, it would be a much smaller punitive amount than many analysts anticipated. That, at least for now, isn’t likely to compel Mahathir to scale back his separate $7.5 billion demand of Goldman, but a lesser US settlement than expected would set a certain benchmark.
Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
When Mahathir Mohamad returned to power last year, the world’s oldest prime minister vowed to claw back billions of dollars plundered in a globe-spanning corruption scandal involving 1Malaysia Development Berhad (1MDB), a state fund co-founded by his ousted predecessor Najib Razak.
The 94-year-old Malaysian leader recently said he was hopeful that an out-of-court settlement could soon be reached with Goldman Sachs, the Wall Street investment bank now under global scrutiny for its role in underwriting three bond issuances that raised US$6.5 billion for 1MDB in 2012 and 2013.
But while Malaysian prosecutors continue their pursuit, US authorities are said to be close to resolving separate criminal and regulatory probes into the scandal, with a settlement on the cards that could see Goldman pay up to $2 billion in penalties.
If so, it would be a much smaller punitive amount than many analysts anticipated. That, at least for now, isn’t likely to compel Mahathir to scale back his separate $7.5 billion demand of Goldman, but a lesser US settlement than expected would set a certain benchmark.
Read the full story at Asia Times.
