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NEW YORK: Former Goldman Sachs chairman Gary Cohn will donate to charities instead of giving back past earnings the company tried to recoup after the 1MDB bribery scandal, Goldman said yesterday.
In October, the investment bank announced a plan to recover compensation from current and former bank executives following a $ 2.9 billion criminal settlement with the Justice Department over the massive international scandal.
The bank said it was seeking about $ 174 million from a group of current and former banking leaders because of their role in Goldman’s “institutional failure,” although the executives were not involved in “any illicit activity.”
But Cohn, who served as an economic adviser to the White House in the first two years of the Trump administration after leaving Goldman, was reluctant to return the funds.
Bloomberg News reported that Goldman had requested more than $ 10 million in compensation from Cohn, but it was unclear whether he planned to donate that full sum. The report said he was donating to charities working on pandemic relief and social justice.
Goldman applauded the move.
“We are pleased that Gary has decided to support charities that are doing important work and put this matter behind us,” said a Goldman spokesperson.
