MALAYSIA DEMANDS GOLDMAN PAY $7.5B IN 1MDB "REPARATIONS" | WHAT REALLY HAPPENED

MALAYSIA DEMANDS GOLDMAN PAY $7.5B IN 1MDB "REPARATIONS"

Malaysia is seeking a massive financial penalty from Goldman Sachs after filing criminal charges against the bank alleging that it lied in deal documents and knowing enabled Malaysian government officials and one corrupt financier to steal billions of dollars from the Malaysian people through 1MDB, the sovereign wealth fund that is at the center of one of the biggest financial frauds in history.

In comments to the Financial Times published Friday, Malaysian Finance Minister Lim Guan Eng said Goldman should pay reparations in excess of $7.5 billion in connection with three bond deals it underwrote for 1MDB (deals that netted the bank a staggering $600 million in fees, well above the typical 1% to 2% fees that are typically collected in these types of deals). The $7.5 billion figure is the largest floated so far by Malaysia, which has charged three of the bank's Asian subsidiaries, as well as two Goldman bankers, in its criminal probe into 1MDB.

Webmaster's Commentary: 

Were I a betting woman, I would bet that there will be some sort of compensation to the Malaysian government, but that the number they are demanding will ultimately be considered "too extreme".

Time will solve that mystery.

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