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FBI to probe Goldman over 1MDB link
Goldman Sachs just can’t help but court controversy, after Abacus, Greece, and Libya (just to name a few), the venerable Wall Street firm has once again found itself embroiled in yet another scandal, and this time, it’s with Malaysia.
According to the Wall Street Journal, the FBI and the U.S. Justice Department are both looking into the Goldman’s role “in a series of transactions” at 1Malaysia Development Berhad – the Malaysian sovereign wealth fund currently at the center of a massive graft investigation.
Things are still at an early stage though and there’s been no suggestion of wrongdoing by the U.S. bank so far. What’s clear however is that Goldman has been making money hand over fist in the region the past six years. After submitting the winning bid to advise what is now known as 1MDB back in 2009, the bank went on to do several profitable deals with the fund, including a massive, $3 billion bond sale that reaped the firm nearly $300 million in fees.
This has the potential to become another P.R. nightmare for the embattled bank, somewhere along the lines of its “vampire squid” days back when Abacus and Fabulous Fab were all over the headlines. Stay tuned.
Photo: Fortune Live Media