1MDB: a subsidiary of Goldman Sachs pleads guilty to close the vast corruption scandal

This is the first time that a division linked to Goldman Sachs has admitted wrongdoing in an investigation by authorities since its IPO in May 1999. REUTERS / Brendan McDermid / File Photo

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This admission is a first in the history of the prestigious New York firm, which agrees to pay nearly $ 3 billion to close an American investigation and escape justice.

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The Malaysian division of the establishment admitted, Thursday, October 22, his guilt before a New York judge, for having violated the American law on corrupt practices abroad.

This is the first time that a division linked to Goldman Sachs, whose role in the 2008 financial crisis has earned it criticism and abuse, has admitted wrongdoing in an investigation by the authorities since its IPO in May 1999.

Billions of dollars had been embezzled from 1MDB, a sovereign wealth fund supposed to contribute to Malaysia's economic development, to buy, among other things, real estate, a yacht and luxury goods.

The money, for example, was used to partially finance Martin Scorsese's film

, starring Oscar-winning actor Leonardo DiCaprio.

Claimed bonuses

Goldman Sachs is accused of having participated in the scandal by organizing bond issues totaling 6.5 billion dollars in 2012 and 2013. She had received some 600 million dollars for this role of intermediary.

Its subsidiary admitted to having, between 2009 and 2014, participated in a scheme that led to the payment of more than $ 1.6 billion in bribes to executives in Malaysia and Abu Dhabi to be retained as an advisory bank.

In addition to his reputation, the slate is heavy for the establishment in this politico-financial affair with planetary ramifications: he has agreed, for the moment, to pay nearly 6 billion dollars in total to various authorities around the world to settle the surveys.

The bank also decided to claim a total of $ 174 million in compensation, including bonuses, from executives, past and present, including CEO David Solomon and his predecessor Lloyd Blankfein.

$ 350 million fine

In addition, that same day, the financial regulator of Hong Kong announced having imposed a fine of 2.71 billion Hong Kong dollars (350 million dollars) on Goldman Sachs for its role in the scandal.

The Hong Kong Securities and Exchange Commission (SFC) said the banking giant has shown " 

 ”.

(With AFP)

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