Malaysia insists Goldman Sachs pays back $7.5 billion in 1MDB case

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Malaysia Insists Goldman Sachs Pays Back $7.5 Billion In 1mdb CaseMalaysian Finance Minister Lim Guan Eng says his government insists on reclaiming $7.5 billion from US financial firm Goldman Sachs in reparations over the 1Malaysia Development Berhad (1MDB) scandal, adding that it was “an extremely reasonable” amount.

He cited “agony” and “trauma” the country experienced as huge financial losses incurred from the country’s 1MDB sovereign wealth fund.

The fallout from the scandal has led to money laundering charges filed against Najib Razak, the former prime minister who lost power in elections last year.

The scandal involved money being illegally transferred across shell companies and individual bank accounts in many countries. The US Department of Justice previously alleged that Najib received $681 million from proceeds misappropriated from a bond issue arranged by Goldman Sachs in 2013.

The finance minister argued that Malaysia “never got any money” from the issuance of bonds, the fees charged were “astronomical” and the terms were “very unfavourable.” He also called on Goldman Sachs to “have a heart” and to include a mention in its annual earnings report that it would “make some provisions for some reparation payments to Malaysia.”

Goldman Sachs, for its part, said that the charges brought in by Malaysia were it “misdirected” and vowed to “vigorously” defend against them.

A spokesperson said that Goldman Sachs was “lied to by various parties“ including 1MDB officials and members of the previous Malaysian government and said it was given no chance to speak before charges were filed against some Goldman entities.

“What we earned from the debt transactions reflected the risks we assumed at the time, specifically movement in credit spreads tied to the specific bonds, hedging costs and underlying market conditions,” Goldman said, adding that “comparisons to ‘fees’ from plain vanilla underwritings, which involve far less risk, are not relevant.”

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Reading Time: 1 minute

Malaysian Finance Minister Lim Guan Eng says his government insists on reclaiming $7.5 billion from US financial firm Goldman Sachs in reparations over the 1Malaysia Development Berhad (1MDB) scandal, adding that it was “an extremely reasonable” amount.

Reading Time: 1 minute

Malaysia Insists Goldman Sachs Pays Back $7.5 Billion In 1mdb CaseMalaysian Finance Minister Lim Guan Eng says his government insists on reclaiming $7.5 billion from US financial firm Goldman Sachs in reparations over the 1Malaysia Development Berhad (1MDB) scandal, adding that it was “an extremely reasonable” amount.

He cited “agony” and “trauma” the country experienced as huge financial losses incurred from the country’s 1MDB sovereign wealth fund.

The fallout from the scandal has led to money laundering charges filed against Najib Razak, the former prime minister who lost power in elections last year.

The scandal involved money being illegally transferred across shell companies and individual bank accounts in many countries. The US Department of Justice previously alleged that Najib received $681 million from proceeds misappropriated from a bond issue arranged by Goldman Sachs in 2013.

The finance minister argued that Malaysia “never got any money” from the issuance of bonds, the fees charged were “astronomical” and the terms were “very unfavourable.” He also called on Goldman Sachs to “have a heart” and to include a mention in its annual earnings report that it would “make some provisions for some reparation payments to Malaysia.”

Goldman Sachs, for its part, said that the charges brought in by Malaysia were it “misdirected” and vowed to “vigorously” defend against them.

A spokesperson said that Goldman Sachs was “lied to by various parties“ including 1MDB officials and members of the previous Malaysian government and said it was given no chance to speak before charges were filed against some Goldman entities.

“What we earned from the debt transactions reflected the risks we assumed at the time, specifically movement in credit spreads tied to the specific bonds, hedging costs and underlying market conditions,” Goldman said, adding that “comparisons to ‘fees’ from plain vanilla underwritings, which involve far less risk, are not relevant.”

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