HONG KONG – Goldman Sachs has agreed to a $ 3.9 billion deal with Malaysia to leave behind one of the biggest scandals in the bank’s history that changed the course of politics in the country.
The deal stems from 2018 charges by Malaysian prosecutors against several Goldman units for their role in helping to raise hundreds of millions of dollars for a sovereign wealth fund that officials later found to be using as a piggy bank. personal. The scandal led to the expulsion of former Malaysian Prime Minister Najib Razak.
Malaysia said on Friday that the Wall Street bank would pay $ 2.5 billion and pledged to cover any shortfalls of about $ 1.4 billion in assets seized by government authorities, including a $ 250 million yacht, a $ 35 Bombardier aircraft. million and an Oscar that once belonged to Marlon Brando.
“This agreement represents assets that legitimately belong to the people of Malaysia,” the Malaysian finance ministry said in a statement Friday night.
“We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were well below expectations,” he said. The Malaysian government had previously said it would seek criminal fines exceeding $ 2.7 billion.
The multi-million dollar deal helps the bank close a chapter in a scandal involving an institution that has represented the heyday of power and money for more than a century. But he still faces a possible guilty plea and another multi-million dollar fine from federal prosecutors in the United States.
In recent weeks, he has tried to reduce that fine and is pushing to avoid a guilty plea. The United States Attorney’s Office in Brooklyn declined to comment. Talks between prosecutors and the bank are ongoing, according to a person familiar with the matter.
Prosecutors in the United States contend that up to $ 4.5 billion was stolen from the sovereign wealth fund, known as 1Malaysia Development Berhad, or 1MDB, in the bank accounts of Mr. Najib, his family and friends. Goldman Sachs helped the fund raise $ 6.5 billion in 2012 and 2013 through a series of bond sales, of which $ 2.5 billion say authorities later diverted top officials.
Goldman Sachs, which received $ 600 million in payments for its work, has consistently denied any wrongdoing.
“Today’s agreement is an important step to leave the 1MDB issue behind and will help the Malaysian government move forward with additional recovery efforts and execute its economic priorities,” the bank said in a statement. “There are important lessons to be learned from this situation, and we must be self-critical to make sure we only improve on the experience.”
Matthew Goldstein contributed reporting from New York.
