The new Malaysian government wants Goldman Sachs to return fees connected to the 1MDB state fund. The bank raised $6 billion for the fund meant for development projects.
The New York-based bank received as much as $593 million in fees and commissions related to its work for the wealth fund. Malaysian authorities are now said to be urging the U.S. Department of Justice to get Goldman Sachs to reimburse the income it made, «Reuters» reported.
Goldman Sachs raised almost $6 billion in bond offerings for the Malaysian fund in 2012 and 2013. The bonds were arranged by the London-based Goldman Sachs unit.
Professional Ban
The conduct of one former Goldman Sachs executive has already been found wanting in the probes that followed the emergence of the scandal. Tim Leissner, the former Southeast Asia chairman of the U.S. bank and lead banker to the fund was handed industry bans in Singapore and the U.S.
Leissner was reportedly influential in winning the 1MDB bond business for Goldman. He has also emerged as a confidant to Jho Low, who U.S. prosecutors allege is the financial mastermind behind the graft scandal.
