Business / Finance

Goldman Sachs will pay nearly $3 billion to settle US charges over its 1MDB scandal and will reduce the pay of CEO David Solomon and top executives (GS)

Published Oct 22 2020 at 6:27 PM GMT

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Goldman Sachs on Thursday agreed to pay nearly $3 billion to settle a probe into its role in Malaysia's 1MDB corruption scandal, and its Malaysia unit pleaded guilty to violating foreign bribery laws, drawing a line under a saga that has dogged the bank for years.
The settlement resolves a probe by US authorities into the bank's role in underwriting three bond offerings in 2012 and 2013 that raised $6.5 billion for Malaysia's government.
Under the terms, Goldman has been slapped with a $2.3 billion penalty and about $600 million in disgorgement of ill-gotten gains.
The US Department of Justice said the deal was the largest penalty ever levied on aUS company for breaching the Foreign Corrupt Practices Act and involved an unprecedented number of regulators across the globe.
Between roughly 2009 and 2014, Goldman paid more than $1.6 billion in bribes to foreign officials in Malaysia and Abu Dhabi to win 1MDB business, prosecutors said.