Goldman Sachs: settles Malaysia's 1MDB corruption scandal

(CercleFinance.com) - Goldman Sachs has agreed to pay up to 3.
9 billion dollars to the government of Malaysia to resolve criminal and regulatory investigations into the Wall Street giant.

The agreement in principle involves the payment of 2.5 billion dollars and a guarantee that Malaysia receives at least 1.4 billion dollars in proceeds from assets related to 1MDB seized by authorities around the world, the US investment bank said.

The scandal revolves around the 1MDB fund set up by former Prime Minister Najib Razak, who is now accused, along with relatives, of having misappropriatedly used the sovereign-wealth funds.

Goldman Sachs said the government of Malaysia has agreed to withdraw the pending criminal charges and agreed that no further charges would be brought against Goldman Sachs and its executives.

The deal excludes former employees Tim Leissner and Roger Ng, the securities firm said.

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