Hong Kong’s Securities and Futures Commission (SFC) on Thursday fined Goldman Sachs a record $350 million for its involvement in Malaysia’s multibillion-dollar IMDB scandal, according to Reuters. Goldman Sachs (Asia) had serious lapses and management control deficiencies that led to the misappropriation of $2.6 billion raised by the Malaysian sovereign wealth fund.
- Goldman Sachs is expected to respond r in due course despite the 1MDB scandal being a costly and long-running sore for the U.S investment bank.
- Malaysian and U.S. authorities estimate $4.5 billion was stolen from 1MDB in a scheme that cut across the globe and involved high-ranking officials.
- Goldman Sachs Asia had significant involvement in the origination, approval, execution, and sales process of three IMDB bond offerings in 2012 and 2013.
- In July, Goldman Sachs had agreed to pay $3.9 billion to settle Malaysia’s criminal probe and is expected to agree to pay more than $2 billion this week to settle U.S. charges over the scandal.
- Goldman Sachs had earned $210 million from the bond offerings, the largest share among its entities.
Goldman Sachs fine is the largest issued by the regulator in the Asian financial hub. GS: NYSE is up 0.73%