Malaysia to sue US bank over state fund corruption scandal

Malaysian Prime Minister Anwar Ibrahim said Malaysia could file lawsuits against Goldman Sachs over the role of the American Investment Bank in a multibillion-dollar corruption scandal in state fund 1MDB, in an interview with CNBC.

Goldman agreed with Malaysia in 2020 to pay $2.5 billion in cash and ensure $1.4 billion in assets are returned to the country in exchange for all criminal charges against the bank.

Anwar also added that Malaysia was also considering other options, including negotiations.

Goldman Sachs CEO David Solomon faces a backlash internally and negative publicity, but has now retained the support of Wall Street Bank directors and some of its major shareholders.

According to the Financial Times, Solomon has been facing the most challenging period since taking over as CEO almost 5 years ago, with the past 12 months punctuated by declining profits, declining morale and negative press coverage – including the main file published by New York magazine this month, which was titled with the question “Is David Solomon a big idiot running Goldman Sachs?”

3 years ago, the Malaysian branch of Goldman Sachs acknowledged that he was guilty of conspiracy after his staff paid bribes to officials in connection with the looting of Malaysia’s sovereign wealth fund.

The Malaysian Fund scandal overthrew “Wan. Um. Dee. of Malaysia and led to criminal cases around the world. It is one of the biggest scandals in the history of the Wall Street giant.

The scandal dates back to the government of former Malaysian Prime Minister Najib Abd al-Razak, who set up the “One” fund. Um. Dee. in 2009. According to the Ministry of Justice, the Fund’s senior officials and partners embezzled an estimated $4.5 billion between 2009 and 2014.