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Thread: DOJ Investigates 'Mystery' Goldman Executive Involved In $4.5 Billion 1MDB Fraud

  1. #1

    DOJ Investigates 'Mystery' Goldman Executive Involved In $4.5 Billion 1MDB Fraud

    Last week, the DOJ filed the first round of criminal charges related to the massive international fraud that was the 1MDB scandal. US prosecutors allege that more than $4.5 billion was embezzled from the sovereign wealth fund, which was set up by the government of disgraced former Prime Minister Najib Razak, eventually leading the ransacked government fund to a default on nearly $2 billion of local currency bonds, briefly denting the value of the Malaysian ringgit. Holders of those bonds are still working on a restructuring deal with the fund. Meanwhile, former Goldman Sachs Southeast Asia Chief Tim Leissner has pleaded guilty to fraud charges and is expected to cooperate with authorities against other more-senior officials at the bank. One of his fellow bankers, Roger Ng, was arrested by Malaysian police and is expected to be extradited to the US.
    There's little doubt that the scandal, which Goldman has, in typical Goldman fashion, tried to pin on a "few rogue employees," will lead to massive fines and possibly other penalties. The bank admitted as much in a regulatory filing on Friday, even suggesting that "other sanctions" - code for a guilty plea for the bank or even more severe penalties levied by the Treasury - could be forthcoming, per Reuters.
    Leissner has already admitted that he accepted more than $200 million in stolen funds in an illegal kickback tied to the deal, as well as bribery charges related to his pursuit of the 1MDB deals. And as more details trickle out, the blithe disregard for US securities laws - and even the bank's own compliance department - attributed to Leissner and his team is looking even more galling.


    All of this is happening at a terrible time for Goldman. It recently underwent a leadership transition, with longtime former CEO Lloyd Blankfein handing the reins to John Solomon, who is best known for moonlighting as an EDM DJ. Blankfein's former second-in-command, Gary Cohn, left the bank nearly two years ago to join the Trump Administration. And as the breadth of the scandal - and the likelihood that the bank's most senior employees may have looked the other way (though, to be sure, Blankfein has repeatedly denied having any knowledge of Goldman's role) - becomes increasingly apparent, the timing of Blankfein's exit is looking more and more suspect.
    Public perception polling shows that Goldman has never quite managed to shake the "Vampire Squid" moniker that it earned during the financial crisis, according to Bloomberg.

    In a story published Sunday, Bloomberg released the most detailed account yet about the lengths that Leissner went to circumvent Goldman's compliance department in order to close on three successive bond issues underwritten by Goldman. The issues, totaling $6 billion, netted $600 million in fees for Goldman. To ensure that the deal would close, Leissner concealed the involvement of Jho Low, a Malaysian financier who was among the individuals charged by the DOJ on Thursday. In an effort to leverage Low's connections to Razak, Leissner tried to set Low up with an account at Goldman's vaunted private wealth division, but was again rebuffed by compliance officers in Switzerland and Singapore. Eventually, Goldman compliance teams from Europe to Africa, as well as the bank's global intelligence group, issued warnings about Low and cautioned that the bank should avoid taking him on as a client.
    But that didn't stop Leissner from inviting Low to a 2013 meeting at New York City's Time Warner Center, a meeting that also included Razak and an unidentified "senior Goldman official" - ignoring the bank's warnings about Low. Back in 2009, Leissner had leveraged his connections with Low to arrange his first meeting with Razak, a meeting that eventually helped him close on the 1MDB bond deal. At the time, Goldman and other US banks were digging out of the hole created by the financial crisis, and were desperate for business.
    Leissner tried everything to try and polish Low's reputation by finding a company for 1MDB to buy. Leissner also tried to convince Goldman to hire Razak's children for coveted Goldman internships in direct violation of a US law prohibiting banks from hiring relatives of senior foreign officials (JPM paid out a nine-figure penalty for violating this law back in 2016 during the so-called "princelings" scandal, where the bank hired the children of Chinese Communist Party officials).
    The type of plea agreement signed by Leissner, known as a "criminal information" suggests that he will likely cooperate with authorities.
    Federal prosecutors in Brooklyn, who are running the probe, likely have a broader view. Leissner’s admission of bribery and laundering conspiracy came in a document called a criminal information, which often suggests a cooperation deal with authorities. If that’s the case, Leissner could be a crucial guide for global investigations into how a majority of the $6.5 billion raised by Goldman Sachs, ostensibly to promote development in Malaysia, was allegedly diverted in one of the largest plunderings of public funds in history.
    And Goldman, which has said that it believed the money raised in the 1MDB bond offerings would be spent on development projects, last week put its former co-head of investment banking, Andrea Vella, on leave.
    The latest documents may mean Goldman Sachs’s reckoning over the 1MDB affair is far from over. On Thursday, the bank placed Andrea Vella, its former co-head of investment banking, on leave. Court documents unsealed earlier in the day said an unidentified Goldman official in Asia conspired with Leissner, Low and another then-Goldman banker, Roger Ng, and had knowledge that bribes were being paid. Prosecutors’ description of the official lines up with that of Vella, who couldn’t be reached for comment.
    But it's very possible that Vella might not be the final link in the chain. The sheer magnitude and complexity of the 1MDB fraud is staggering.

    More at: https://www.zerohedge.com/news/2018-...ion-1mdb-fraud
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

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  3. #2
    Trump hired several Goldman Sachs people for his administration.

    https://www.commondreams.org/views/2...administration

    We are witnessing what may be a new Golden Age for Goldman Sachs. After running a campaign in which he lambasted the “corrupt” ties between Wall Street and Washington, President Trump has handed the job of shaping economic policy over to Wall Street insiders generally, and to alumni of Goldman Sachs in particular. These appointments add up to a level of inside influence that is unusual even by Goldman’s historic standards. And future picks could produce even more Goldman influence.

    In choosing Gary Cohn as National Economic Council Director and Steve Mnuchin as Treasury Secretary, along with Jay Clayton at the Securities and Exchange Commission, Trump has turned to Wall Street veterans with deep knowledge of the financial crisis—knowledge gained as champions of the dangerous practices that helped cause it.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  4. #3
    https://www.theedgesingapore.com/lea...probe-us75-mil

    Leaked emails showed Jho Low's associates in talks with Trump ally to drop 1MDB probe for US$75 mil

    SINGAPORE (Mar 2): Low Taek Jho is said to have been in multimillion-dollar negotiations with Elliott Broidy, a top Republican fundraiser and ally of United States President Donald Trump, to make the probe into the 1Malaysia Development Berhad (1MDB) corruption scandal disappear.

    In a series of leaked emails dated last year, Broidy and his wife, Robin Rosenzweig, appear to have discussed setting up a consulting contract with Low to help put an end to US investigations into the multibillion-dollar scandal involving the Malaysian sovereign wealth fund, according to The Wall Street Journal.

    These emails included draft agreements between representatives of the Malaysian businessman, better known as Jho Low, and Rosenzweig's California law firm.

    In March 2017, Rosenzweig is reported to have emailed an unsigned draft agreement stipulating various terms, including a US$75 million fee in exchange for help to get the US Department of Justice to drop its civil-asset forfeiture lawsuits within 180 days.

    However, later messages in the email chain are said to reveal that the parties could not come to an agreement even two months later in May.

    According to reports, the delay was due to 1MDB mastermind Low not wanting to pay Rosenzweig directly, but instead through his friend and former hip-hop star, Pras Michel.

    Along with the contract drafts, the leaked emails are said to have included talking points for Malaysia Prime Minister Najib Razak ahead of his visit to Washington in 2017.

    In one email dated Aug 7, 2017, Broidy is alleged to have sent an email to a colleague in his venture capital firm, outlining how Najib should approach his White House visit.

    Carrying the subject line "Malaysia Talking Points *Final*", the talking points included making it clear that Malaysia fully backed US efforts to isolate North Korea.

    The list is said to have also referenced US investigations into 1MDB, which “has cause unnecessary tensions… and could cause a negative reaction among Malaysians”, according to WSJ.

    Chris Clark, a lawyer for Broidy and Rosenzweig, confirmed in a statement that Rosenzweig's law firm, Colfax Law Office Inc., was engaged by Michel "to provide strategic advice as part of a broader team to Mr Low."
    More at link.
    Last edited by Zippyjuan; 11-05-2018 at 12:06 AM.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  5. #4
    https://thehill.com/blogs/blog-brief...e-trump-lawyer

    DOJ charges Malaysian financier tied to Christie, Trump lawyer

    The Department of Justice announced charges on Thursday against a Malaysian financier accused of using money from a state-owned fund to bribe Malaysian and Abu Dhabi officials and to pay for luxury goods in the U.S.

    The department charged Low Taek Jho, 36, also known as Jho Low, with three counts in connection to the 1Malaysia Development Berhad (1MDB) scheme, which has embroiled multiple Malaysian officials.

    Low also allegedly used money from the funds to pay for real estate, art and to fund production of movies like "The Wolf of Wall Street."

    The Wall Street Journal previously reported that Low may have made payments using the laundered funds to a team of attorneys including former New Jersey Gov. Chris Christie (R) and to Marc Kasowitz, who has worked as President Trump's lawyer at the Trump Organization.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    "China has total respect for Donald Trump and for Donald Trump's very, very large brain," - Donald Trump.

    I am Zippy and I approve of this post. But you don't have to.

  6. #5
    Last week, the DOJ filed the first round of criminal charges related to the massive international fraud that was the 1MDB scandal.
    US prosecutors alleged that more than $4.5 billion was embezzled from the sovereign wealth fund, which was set up by the government of disgraced former Prime Minister Najib Razak, eventually leading the ransacked government fund to a default on nearly $2 billion of local currency bonds, briefly denting the value of the Malaysian ringgit. Holders of those bonds are still working on a restructuring deal with the fund.
    Meanwhile, former Goldman Sachs Southeast Asia Chief Tim Leissner has pleaded guilty to fraud charges and is expected to cooperate with authorities against other more-senior officials at the bank. One of his fellow bankers, Roger Ng, was arrested by Malaysian police and is expected to be extradited to the US, although as we reported this morning, Ng is fighting said extradition (for a full breakdown of the latest events, see this post).
    What was perhaps even more curious about the DOJ complaint, was the reference of a "senior Goldman official" who was instrumental and involved in Goldman's establishing of close ties with both 1MDB and the Razak government, ties which would eventually allow Goldman to issue $6 billion in three issue in bonds underwritten by Goldman which netted $600 million in fees for the bank.
    And, as we added over the weekend, all of this is happening at a terrible time for Goldman" which recently underwent a leadership transition, with longtime former CEO Lloyd Blankfein handing the reins to John Solomon, who is best known for moonlighting as a DJ.
    And as the breadth of the scandal - and the likelihood that the bank's most senior employees may have looked the other way (though, to be sure, Blankfein has repeatedly denied having any knowledge of Goldman's role) - becomes increasingly apparent, the timing of Blankfein's exit is looking more and more suspect.
    And now we now know why, because it now appears that our veiled reference that Blankfein may have been the unnamed senior Goldman official, was in fact accurate.
    In a new report, Bloomberg writes that years before Goldman Sachs arranged bond deals now at the heart of globe-spanning corruption probes, "the firm’s then-CEO Lloyd Blankfein personally helped forge ties with Malaysia and its new sovereign wealth fund."
    But much more importantly, Blankfein was the unidentified "mystery" high-ranking Goldman Sachs executive referenced in U.S. court documents who attended a 2009 meeting with the former Malaysian prime minister, Bloomberg's sources said. And what's worse, the meeting was arranged with the help of men who are now tied to the subsequent plundering of the 1MDB fund, according to U.S. court documents unsealed last week.
    The meeting at the Four Seasons hotel in New York was set up and attended by two key figures in the 1MDB scandal, Malaysian businessman Jho Low and former Goldman partner Tim Leissner, one person with direct knowledge of the matter said, asking not to be identified as the information isn’t public.
    It was this high level gathering - which was also attended by then Goldman CEO Blankfein - that laid the groundwork for a relationship that would prove extremely profitable for the investment bank.
    While a Goldman spokesman refused to comment to Bloomberg on Blankfein's behalf, the bank has repeatedly said it knew nothing about any corruption, and simply believed proceeds of debt sales it underwrote "were for development projects" and then threw Leissner under the bus, accusing the former Goldman partner of withholding information from the firm.

    More at: https://www.zerohedge.com/news/2018-...ting-noted-doj
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

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    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
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  7. #6
    Goldman Sachs is down over 10% in the last two days as 1MDB deal drama comes back to bite them.

    As Bloomberg reports, Malaysian Finance Minister Lim Guan Eng said the nation is seeking a full refund of all the fees it paid to Goldman Sachs for arranging billions of dollars of deals for troubled state fund 1MDB.

    Goldman has “admitted culpability” after former banker Tim Leissner entered a guilty plea for his role in the scandal, Lim said in a Monday interview with radio station BFM. Lim is banking on the firm’s “indirect” admission of wrongdoing and U.S. law against kleptocracy, to help Malaysia recoup fees that include nearly $600 million that it paid Goldman for three bond deals. Goldman Sachs hasn’t publicly admitted any wrongdoing and has said it’s cooperating with authorities.

    Seems like Mr. Blankfein jumped ship right in time.


    More at: https://www.zerohedge.com/news/2018-...und-1mdb-deals
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  8. #7
    In a sign that Goldman clients are taking their business elsewhere, Abu Dhabi-based International Petroleum Investment Co. and Aabar Investments PJS filed a lawsuit against Goldman in a New York court seeking unspecified damages over the bank's "central role" in 1MDB, according to the Wall Street Journal. Both IPIC, a UAE sovereign wealth fund, claim they were harmed by Goldman when the bank bribed former managing director Khadem Al-Qubaisi and former Aabar Investments CEO Ahmed Badawy Al-Husseiny to help set up IPIC as an investment partner to 1MDB.
    "Goldman Sachs conspired with others to bribe IPIC’s and Aabar’s former executives," the court filing said, referring to IPIC’s subsidiary Aabar Investments PJS.
    As WSJ pointed out in its reporting about the new lawsuit, which followed a petition filed by Malaysia asking the DOJ to help it recoup all of the $600 million in fees (plus an interest-rate differential) that it paid Goldman for the bond issues that helped seed 1MDB, the reputation damage could inspire sovereign wealth funds run by some of the UAE's neighbors to take their business elsewhere as well.
    The move is a sign that the 1MDB scandal, a reputational black eye for Goldman, could spill over into its banking business. IPIC and its successor, Mubadala Investment Co., are longtime investment-banking clients, having hired Goldman for years to advise on and raise money for deals.
    Any moves by Abu Dhabi to shift business away from Goldman could influence other governments in the Middle East, especially Saudi Arabia, where it has a strong voice, according to people familiar with the bank’s regional business.
    Even before news of this lawsuit broke, Goldman's shares were already the worst-performing US banking stock of the year, and questions about the involvement of senior executives (including former CEO Lloyd Blankfein) raised the possibility that the DOJ's prosecution could go well beyond the two bankers that have already been arrested and charged (one of whom, Goldman's former Southeast Asia chief Tim Leissner, has agreed to cooperate). Given that Goldman (and most of the big investment banks) rarely face this level of public backlash over their misdeeds, it's hardly surprising that the bank's biggest rival Morgan Stanley indulged in some well-deserved schadenfreude when its equity analysts downgraded Goldman's shares and cut their rating to equal weight (with a price target of $226 a share, representing a nearly 20% upside to where Goldman's stock is currently trading). In its analysis, Morgan warned about other potential lawsuits related to 1MDB, according to CNBC.
    "It is unclear how long the issue will take to resolve, what the fines and penalties could be, and what costs Goldman Sachs will subsequently incur to satisfy any demands from regulators," wrote Morgan Stanley analyst Betsy Graseck. "These risks, coupled with potential headline risks in the coming months (additional lawsuits, additional regulatory probes, internal reviews), drive our Equal-weight rating."
    Indeed, with so many parties involved (investors in 1MDB's bonds were left holding the bag when the fund defaulted), it's unlikely that Goldman's legal troubles will end here.

    More at: https://www.zerohedge.com/news/2018-...-exodus-begins
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  9. #8
    Former Goldman Sachs CEO Lloyd Blankfein has said he has "no recollection" of meeting corrupt Malaysian financier Jho Low. Maybe this will jog his memory.

    Following reports published earlier this month that Blankfein attended two meetings with Low - an "introductory meeting" in 2009 and another meeting at the Mandarin Hotel in New York in 2013 with about 20 other Goldman bankers (now-jailed ex-Prime Minister Najib Razak also attended these meetings) - the New York Times on Thursday published a report revealing that Blankfein's involvement in securing 1MDB's business for the bank was even deeper than previously believed.
    Back in December 2012, when the bank was still struggling with the legal fallout from its predatory sales of mortgage-backed securities during the run-up to the financial crisis, Blankfein met privately with Low at Goldman's headquarters in Lower Manhattan, according to three anonymous sources purportedly familiar with the details of the meeting, the NYT reported. The meeting occurred after the bank's compliance department had already objected to involving Low in any of its business dealings.

    Of course, nearly six years later, Low is now international fugitive, accused of being the mastermind in a multibillion-dollar fraud involving a Malaysian government investment fund.
    Needless to say, this is problematic for the recently retired Blankfein, who left the bank on Oct. 1, coincidentally just one month before the DOJ started handing down indictments to Goldman bankers, one of whom has agreed to cooperate against the bank).
    Why? Because it undercuts the bank's PR line that the bribes paid in furtherance of a massive money laundering scheme were the work of a handful of "rogue employees." The meeting was described as a "one-on-one" sitdown between Blankfein and the corrupt Malaysian banker, who reportedly played a central role in bribing officials in Malaysia, Saudi Arabia and the UAE.
    Prosecutors in Malaysia and the US are looking to indict Low for his involvement in the fraud. The banker is currently on the run, living in an undisclosed location while he wages an expensive PR campaign to clear his name.
    A PR rep for Blankfein confirmed that he did meet with Low, but that the meeting in question wasn't one-on-one. Instead, the spokesman said Mohamed Ahmed Badawy Al-Husseiny, the head of an Abu Dhabi investment fund that is now suing Goldman over its involvement with 1MDB, also attended the meeting.
    A Goldman spokesman, Jake Siewert, said that Mr. Blankfein had a meeting with Mr. Low on Dec. 14, 2012, but that it was also attended by Mohamed Ahmed Badawy Al-Husseiny, who ran an Abu Dhabi investment fund, Aabar. "Mr. Blankfein had an introductory, high-level meeting in December 2012 with the C.E.O. of Aabar, which was an existing client of the firm," Mr. Siewert said. "At Aabar’s request, Mr. Low accompanied the C.E.O. to that meeting."
    In the three years between the 2009 and 2012 meetings with Low, Goldman's compliance department raised multiple red flags surrounding the source of his mysterious wealth. However, Blankfein's staff ignored these warnings.
    In the three years before the 2012 meeting, the bank’s compliance staff had repeatedly rejected Mr. Low’s attempts to become a Goldman client because it was unclear how he had amassed his wealth.
    But when Mr. Blankfein’s aides sought information about Mr. Low in preparation for the meeting, a senior investment banker in Asia praised Mr. Low and did not mention the compliance concerns, according to a person who has reviewed internal Goldman emails about the meeting.
    Nor did the compliance red flags stop the bank from doing extensive business with 1MDB, which Malaysia’s prime minister had set up in 2008 ostensibly to invest in infrastructure and other projects to improve Malaysians’ daily lives. Goldman ultimately helped 1MDB sell more than $6 billion in bonds to investors, earning about $600 million in fees.
    [...]
    From the start, Goldman’s relationship with 1MDB unsettled some bank employees, according to interviews with current and former Goldman officials and a person involved in government investigations into the bank. They spoke on the condition of anonymity because of the criminal investigation.
    Goldman’s internal compliance team, known as the business intelligence group, had repeatedly blocked Mr. Low from opening an account with the bank’s elite private client group, citing concerns about the source of his money, according to court documents filed by federal prosecutors.
    The compliance team also identified Mr. Low as someone Goldman should avoid working with on any 1MDB transactions, according to the court documents.
    What's more, Low's name didn't appear on any of the three bond deals that Goldman secured for 1MDB. But according to Tim Leissner's plea agreement (Leissner is the former Goldman Southeast Asia chief who purportedly spearheaded the 1MDB deals), it was widely known - including, apparently, by Blankfein himself - that Low was a "key intermediary" in all three deals.
    The Times also reported details about the efforts of one former Goldman executive, David Ryan, to stop the 1MDB deals over concerns about corruption and oversight. However, Goldman, which had long been weaker in Asia than many of its rivals, pushed ahead, and Ryan was overruled by Blankfein and senior Goldman executive Stephen Scherr, who is now the bank's chief financial officer.

    More at: https://www.zerohedge.com/news/2018-...ter-1mdb-probe
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment



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  11. #9
    If there was any doubt that Goldman Sachs' compliance controls "don't work very well", as Malaysian Prime Minister Mahathir Mohamad wryly stated during an interview with CNBC last month, this should put it to rest. And as the Vampire Squid's lax compliance standards (the bank's compliance department was unwilling or unable to stop then-CEO Lloyd Blankfein from holding a one-on-one sit down with a shady Malaysian financier accused of stealing billions from the sovereign wealth fund, all in the name of landing a lucrative deal) have emerged as a focal point in a DOJ investigation into the bank's conduct.
    On Tuesday Bloomberg highlighted another troubling detail that raises questions about when the bank's willingness to circumvent its own internal controls to win deals of placate valuable clients.

    According to Bloomberg, investigators are looking into a mysterious transaction involving Goldman and Falcon Bank, a Singapore-based bank that was implicated by Singaporean authorities for allegedly helping to launder money stolen from 1MDB.
    Goldman suffered "unexpected losses" during the trade after Singaporean regulators shuttered Falcon Bank over its role in the 1MDB theft.
    An obscure Swiss bank implicated in Malaysia’s 1MDB corruption scandal was involved in another trade with Goldman Sachs Group Inc. in 2016 that exposed the Wall Street firm to unexpected losses. Falcon Private Bank had been a key player in the 1MDB drama since the end of 2015, when it first surfaced as a suspected conduit for hundreds of millions of dollars siphoned from Malaysia’s investment fund. By July of 2016, Singapore regulators found "substantial" breaches of money-laundering regulations at Falcon.
    Yet even after Singapore accused Falcon during the summer of 2016 of helping to facilitate the 1MDB fraud, Goldman ignored the warnings and entered into a trade with the bank at the behest of a valuable client. But Falcon stiffed its Wall Street peer after regulators forced Falcon out of business, leaving Goldman with an $800 million hole. Investigators are trying to figure out why such a large trade with an obscure and tainted counterparty was allowed to be executed.
    By July of 2016, Singapore regulators found "substantial" breaches of money-laundering regulations at Falcon. Yet weeks later, Goldman Sachs entered into a trade with Falcon at the urging of controversial businessman Lars Windhorst, people with knowledge of the matter said. Now, Falcon’s role in that trade is emerging at an uncomfortable time for Goldman Sachs. Regulators investigating 1MDB are said to be looking at how Goldman’s moneymakers allegedly dodged internal controls while helping the Malaysian fund amass more than $6 billion. The Falcon deal prompts a further question: why a sizable trade with an obscure firm mired in a money-laundering probe didn’t trip alarms.
    Goldman was briefly exposed to massive losses as a result of the trade, and responded by firing a junior executive who later sued the bank, arguing that he was "scapegoated" by higher ups who had pressured him to make the deal. This is how the transaction became part of the public record.
    Chris Rollins, the executive who was fired for his role in the trade, said Goldman's compliance department wouldn't allow traders to deal directly with Lars Windhorst, so Windhorst suggested that Rollins deal with Falcon instead. Singaporean authorities yanked Falcon's license after its role in the scandal was exposed. Goldman has disputed Rollins' account, saying that Rollins knew the bank had "misgivings" about the transaction.
    But that still doesn't explain how and why the transaction wasn't blocked - which is particularly relevant after the New York Fed reportedly pressured Goldman to "tighten up" its internal controls after the first 1MDB deal closed.

    More at: https://www.zerohedge.com/news/2018-...db-linked-bank
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  12. #10
    Criminal organizations gonna crime...
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  13. #11
    In an unprecedented move that possibly foreshadows similar charges from the US DOJ - and lots of headaches for the "recently retired" Lloyd Blankfein - the Malaysian attorney general has filed criminal charges against Goldman Sachs - targeting two of the investment bank's Asian subsidiaries and two former Goldman bankers who have already been charged by the US (former Southeast Asia head Tim Leissner and banker Roger Ng) and accusing the investment bank of violating the country's securities laws by lying in bond agreements for three deals that raised $6.5 billion for 1MDB, aMalaysian sovereign wealth fund formed under former Prime Minister Najib Razak that US authorities believe was looted for upwards of $4 billion by corrupt bankers and officials.
    While authorities in Singapore, Switzerland and elsewhere had already filed criminal charges against various banks involved with the scandal last year, the first charges against Goldman and its employees over their involvement in the scandal materialized two months ago when the DOJ indicted Leissner and Ng.

    More at: https://www.zerohedge.com/news/2018-...-goldman-sachs
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  14. #12
    Just shut down such greedy and criminal giant companies/organisations. Those MBAs and CAs. Close down those MBA and CA colleges.

  15. #13
    Probably Blankfein himself.
    "Let it not be said that we did nothing." - Ron Paul

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