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US looking into 1MDB's settlement with Goldman for less than $2 billion

While a settlement could be announced as soon as next month, the terms could change before a deal is finalized, according to the report

Reuters  |  Washington 

A sign is displayed in the reception of Goldman Sachs in Sydney (Photo: Reuters)

Group Inc could end up paying less than $2 billion to resolve criminal and regulatory probes over its role in raising money for scandal-ridden Malaysian investment fund 1MDB, Bloomberg reported on Friday, citing three people familiar with the negotiations.

While a settlement could be announced as soon as next month, the terms could change before a deal is finalized, according to the report.

The Justice Department and other federal agencies have weighed seeking penalties between $1.5 billion and $2 billion, which is less than what some analysts have signaled Goldman might have to pay, Bloomberg reported.

Malaysia has charged Goldman and 17 current and former directors of its units for allegedly misleading investors over bond sales totaling $6.5 billion that the U.S. bank helped raise for sovereign wealth fund 1Malaysia Development Bhd (1MDB).

spokeswoman Maeve DuVally said the bank continues to cooperate with the regulators' investigations, but declined to comment further. The Department of Justice also declined to comment.

Shares of the U.S lender were up 2.7% in the afternoon trade.

 

First Published: Fri, December 06 2019. 22:31 IST
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