King of Wall Street fined 22.6 billion! A prime minister is involved

category:Finance
 King of Wall Street fined 22.6 billion! A prime minister is involved


As of Thursdays close, Goldman shares rose 1.23% to $205.40.

Through the announcement of the three places, we can see what happened specifically

SFC:

According to the information disclosed by the Hong Kong Securities Regulatory Commission, the reason why Goldman Sachs (Asia) was punished this time was that it made serious mistakes and deficiencies in the supervision of management, risk, compliance and anti money laundering. The mistake resulted in misappropriation of US $2.6 billion of the US $6.5 billion raised by 1Malaysia development Berhad (1mdb) in 2012 and 2013 through three bond sales, resulting in condemnation and a fine of US $350 million (HK $2.71 billion).

The SFC is of the view that Goldman Sachs Asia lacks adequate monitoring measures and that there is misconduct in its monitoring staff and detection in its daily operations, and allows the offering to continue when a number of early warning signs related to the 1mdb bond offering have not been properly reviewed and satisfactory answers have not been obtained.

(screenshot of SFC website)

Mr Ashley alder, chief executive of the SFC, said: the SFC has conducted a rigorous and independent investigation into whether Goldman Sachs Asias involvement in the 1mdb incident in 2012 and 2013 violated the standards that the licensees should meet under Hong Kong regulations. This enforcement action is the result of this work.

Department of Justice:

According to an announcement issued by the US Department of justice, Goldman Sachs admitted to violating the Foreign Corrupt Practices Act (FCPA) and admitted to bribing Malaysian and Abu Dhabi officials for more than $1 billion to obtain lucrative business, including underwriting about $6.5 billion for three bond transactions of 1Malaysia development Bhd (1mdb), from which Goldman earned hundreds of millions of dollars in underwriting fees. Goldman will pay more than $2.9 billion in fines as part of a coordinated resolution with criminal and civil affairs authorities in the United States, the UK, Singapore and elsewhere.

(screenshot of US Department of justice website)

Over the course of five years, Goldman has been involved in a wide range of international corruption programs, bribing more than $1.6 billion to senior government officials in a number of countries, so that the company can earn hundreds of millions of dollars in revenue. In terms of fees, it damages the interests of the Malaysian people and the reputation of American financial institutions operating abroad.

Financial conduct authority:

The financial conduct authority (FCA) and the Prudential Regulation Authority (PRA) will impose a total fine of 96.6 million pounds (US $120 million) on Goldman Sachs International (GSI) for the failure of risk management in the issuance of 1malysia development Berhad (1mdb) bonds and its role in three financing transactions of 1mdb. The FCA and pra fines are part of a $2.9 billion global coordinated resolution with Goldman Sachs Group (GSG) and its subsidiaries.

(screenshot of the website of the financial conduct authority)

Goldman Sachs has a vital role to play in fighting financial crime and helping to maintain the integrity of the financial system, said Mark steward, FCAs executive director of law enforcement and market oversight. Goldmans failure to take appropriate action in this context shows that it is not taking this responsibility seriously. When faced with allegations of bribery and employee misconduct, the companys mismanagement allowed serious misconduct to be resolved. There is no amnesty for companies dealing with financial crimes, and the amount of Goldman Sachs international fines reflects that.

Failure to manage the risk of financial crime could have a significant adverse impact on the safety and soundness of the company, said Sam woods, deputy director of the PRA and chief executive of PRA. We expect companies to manage risks prudently and comprehensively, including financial crime risks, and attach great importance to accusations of bribery and misconduct. The seriousness of the case is reflected in the amount of the PRA fine.

Goldman Sachs biggest scandal in recent 10 years

The global record punishment received by Goldman Sachs stems from the misappropriation of $2.6 billion of the $6.5 billion raised by 1Malaysia development Berhad (1mdb) in 2012 and 2013.

The U.S. Department of justice has found that between 2009 and 2014, Goldman Sachs directly or indirectly bribed more than $1.6 billion to foreign officials in Malaysia and Abu Dhabi, including the Malaysian government, 1mdb, Abu Dhabis state-owned and state-controlled sovereign wealth funds, and international oil Investment Corporation (IPIC) through a plan to ensure that Goldman Sachs gets 1mdb funding Underwriting qualification for fund raising.

But it was later found that more than $4.5 billion went to fraudulent shell companies controlled by corrupt Malaysian and Abu Dhabi officials and was mainly stolen by jho low, a Malaysian government consultant. The fund was supposed to use its trading profits to repay bonds, but low spent the money on luxury yachts, luxury apartments, high-end luxury goods and a series of high-end parties. Low agreed in October to hand over more than $700 million in assets to U.S. authorities, but did not admit wrongdoing.

According to the Wall Street Journal, Najib also used 1mdb in his re-election campaign. U.S. prosecutors believe that Goldman ignored the warning signals about jho low and the fund and charged as much as $600 million. The scandal of 1mdb led to the fall of Najib. The new Malaysian government, established in 2018, has restarted the investigation into Najibs government. Najib was tried on suspicion of money laundering and abuse of power related to 1mdb, but he denied the charges and called it a political attack. His wife and stepson were also charged. In July, the Malaysian government said it had reached a $3.9 billion settlement with Goldman Sachs, which would pay $2.5 billion to the Malaysian government and promise to recover $1.4 billion of assets alleged to have been stolen from the fund. Extended reading express strike rumor frequent, this years double 11 can happily chop hands? Jinqimen incident reversal, 80% of owners stay! Vanke property sends thank you letter the most lack of jobs occupation ranking: Beijing, Shanghai and Guangzhou are short of salesmen, manufacturing industry is the most short of people. Source: Securities Times editor in charge: Yang Bin_ NF4368

According to the Wall Street Journal, Najib also used 1mdb in his re-election campaign. U.S. prosecutors believe that Goldman ignored the warning signals about jho low and the fund and charged as much as $600 million.

The scandal of 1mdb led to the fall of Najib. The new Malaysian government, established in 2018, has restarted the investigation into Najibs government. Najib was tried on suspicion of money laundering and abuse of power related to 1mdb, but he denied the charges and called it a political attack. His wife and stepson were also charged.