US Markets
GS

Goldman Sachs, Malaysia agree to $3.9 billion settlement over 1MDB

Credit: REUTERS/© David Gray / Reuters

Malaysia on Friday said U.S. investment bank Goldman Sachs has agreed to a $3.9 billion settlement with the government over the multi-billion dollar 1MDB scandal. The deal includes a $2.5 billion cash payout by Goldman.

(Adds details from Malaysia's finance ministry)

KUALA LUMPUR, July 24 (Reuters) - Malaysia on Friday said U.S. investment bank Goldman Sachs has agreed to a $3.9 billion settlement with the government over the multi-billion dollar 1MDB scandal.

The deal includes a $2.5 billion cash payout by Goldman and a guarantee by the bank to return at least $1.4 billion in assets linked to 1MDB bonds, Malaysia's finance ministry said in a statement.

Malaysian prosecutors filed charges in December 2018 against three Goldman Sachs units for misleading investors over bond sales totalling $6.5 billion that the bank helped raise for sovereign wealth fund 1MDB (1Malaysia Development Bhd).

Goldman Sachs has consistently denied wrongdoing, saying that certain members of the former Malaysian government and 1MDB lied to it about how proceeds from the bond sales would be used.

The units of Goldman Sachs have pleaded not guilty to the charges.

The U.S. Department of Justice has said around $4.5 billion was misappropriated from 1MDB. (Reporting by Rozanna Latiff and Joseph Sipalan; Editing by Martin Petty) ((ananthalakshmi.as@thomsonreuters.com; +603 2333 8036; Reuters Messaging: ananthalakshmi.as.thomsonreuters.com@reuters.net; Twitter: @AnanthalakshmiA)) Keywords: MALAYSIA POLITICS/1MDB GOLDMANSACHS (UPDATE 1, PIX)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GS

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More