Goldman Sachs’ Tardy Shareholder Settlement Heaps Further Shame But Little Pain On Rogue Bankers
Goldman Sachs finally settles with shareholders over 1MDB losses after eight years, but top executives remain financially untouched.Summary
Goldman Sachs has finally agreed to settle with shareholders after eight years of legal resistance regarding the damage caused by its dealings with the 1MDB fund. The settlement, reached in late April, comes with no details on the compensation amount, but it is clear that the bank's top executives, who received record bonuses from the fraudulent bond offerings, will not face financial penalties. These executives had previously been criminally indicted by Malaysia, though charges were dropped in a $2.5 billion settlement with the Muhyiddin government. The settlement was driven by the bank's desire to avoid airing damaging allegations in court. The case revealed how Goldman's management ignored warnings from figures like David Ryan about the suspicious nature of the bond issues and pushed through deals guided by bankers with questionable records, such as Andrea Vella and Tim Leissner. The bank's actions, including meetings with Malaysian Prime Minister Najib and Jho Low, were part of a scheme to steal billions from Malaysia's public funds, a scheme that continued even after the 2008 financial crisis when Goldman was supposed to have implemented compliance reforms. The settlement allows Goldman's new CEO, David Solomon, to enjoy the proceeds of the stolen money while the bank avoids further legal exposure.
(Source：Sarawak Report)