Listen: Goldman Sachs, Malaysia, Bribery discussed on WSJ What's News
"We report that Goldman Sachs is in talks to admit guilt and pay a two billion dollar fine to resolve a criminal investigation for its role in a wide ranging Malaysian corruption scandal. Joining me now with more details Wall Street Journal. Reporter Liz Hoffman. Let's take a quick step back and just remind listeners of the context of this S. scandal. This is pretty wide ranging. This is widely seen as the largest financial fraud in history there was a government fund in Malaysia called one MD and it was extensively there to help develop the economy development. Projects Goldman helped raise about six and a half billion dollars through bond offerings to its clients. Prosecutors leaders in the US and Asia say most of that got stolen my couple of people that primarily a Malaysian national named Jolo and his associates who include two former former Goldman bankers and Some officials from the Middle East as well so just like a massive massive theft and a lot of that money has been lost forever. Probably some of it has been recovered real estate and other other things that governments around the world have seized yacht some art but this is like a great rate Heist Caper so Liz tell me more about your exclusive on Goldman Sachs and its talks with the US government. What exactly would this settle? It depends how broad it gets at the moment. Goldman is talking only really to the Department of Justice which is one of several agencies. That's been looking into this. So would settle the most serious criminal charges against the bank for violating federal anti bribery laws. It would probably not settle related matters with securities and Exchange Exchange Commission which usually have to do with broker dealers and disclosures to investors. It would not settle an investigation Malaysia which has been ongoing. So there's some loose threads here golden and would like to wrap it up sort of comprehensively the probably GonNa have to do it in pieces. How have the allegations wait on Goldman? It's certainly weighed on the stock price. It's widely seen as something that's been pushing down the stock price just because investors don't know how big a problem it's going to be. It's also been a reputational problems. People have to go out and pitch their business and there's headlines all the time about corruption bribery and it's just a bad bad luck all around. What are the other loose ends not involving Goldman that have it to be tied up here on Jolo remains at large the US government would like to prosecute him? He's sort of last known to be in China but they don't have him. There's another Goldman banker who was extradited from Malaysia. Here there are some you know. Both golden bankers one has pleaded guilty. He'll need to be sentenced. The other has pleaded not guilty in. We'll either need to be tried or have that wrapped up and you know there's some other banks. Deutsche Bank has been sort of implicated in this and this is the first bond offerings want him to be was started about ten years ago the first bond offerings two thousand twelve zoo really been a long running scandal and it's only gotten wider."