Goldman Sachs continues to resolve its 1MDB-related issues with the latest multi-million dollar shareholder settlement in the U.S.
Goldman has agreed to a $79.5 million settlement with shareholders over the bank’s lax oversight from its involvement with 1MDB, according to a «Bloomberg» report citing documents filed in a Manhattan federal court last Friday.
The settlement will be paid by insurers for ex-chief executive Lloyd Blankfein, current CEO David Solomon and 10 other current and former executives. The money will be used to pay for «compliance activities» at the bank including enhanced internal controls, accounting and the running of «a rigorous anti-corruption compliance program».
In 2012, Goldman issued $6.5 billion of 1MDB bonds which generated $600 million in fees. But the scandal has cost it $5 billion thus far, including a $2.9 billion fine to U.S. regulators, and the first guilty plea in the history of the bank after one unit admitted to conspiring to violate U.S. anti-bribery laws.
