“Two blocks from the White House, in a century-old stone building once owned by Lehman Brothers, federal prosecutors are probing the activities of Goldman Sachs in Malaysia.
Department of Justice officials are investigating whether the Wall Street bank violated the Bank Secrecy Act in its handling of the proceeds of securities offerings for 1Malaysia Development Berhad (1MDB), a state investment fund embroiled in a long-running scandal over claims of misappropriation, according to people familiar with the probe. Regulators at the Securities and Exchange Commission and the Federal Reserve also are scrutinising the bank’s conduct.”
“Given the DoJ’s slap on the wrists to global banks which violate the BSA, the risk to Goldman is probably a couple billion bucks, which is to say, not much risk at all..”
To read the full Financial Times article by David Lynch, Jeevan Vasagar and Ben McLannahan click here.