WASHINGTON: Goldman Sachs on Thursday agreed to pay nearly $3 billion to settle a probe into its role in Malaysia's 1MDB corruption scandal, and its Malaysia unit agreed to plead guilty to violating foreign bribery laws, drawing a line under a saga that has dogged the bank for years.
The settlement resolves a probe by US authorities into the bank's role in underwriting three bond offerings in 2012 and 2013 that raised $6.5 billion for Malaysia's government. Under the terms, Goldman has been slapped with a $2.3 billion penalty and about $600 million of disgorgement.
While the saga has proved a humbling and reputationally damaging episode for Wall Street's powerhouse investment bank, Thursday's settlement will allow Chief Executive Officer David Solomon to accelerate his plan to reshape Goldman as a more conventional bank, analysts said.
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