(Bloomberg) -- Goldman Sachs Group Inc. will pay a record foreign bribery penalty in the U.S. and will enter a guilty plea for the first time ever for its role in the plundering of Malaysia’s 1MDB investment fund.Goldman admitted to wrongdoing but its parent company avoided conviction in a deal known as a deferred-prosecution agreement, according to a court proceeding in Brooklyn, New York, on Thursday. That designation is a win for Goldman Sachs, because a conviction might have risked losing some institutional clients that are restricted from working with financial firms with criminal records.The bank will pay more than $2.3 billion fine in the plea deal, U.S. prosecutor Alixandra Smith said, the largest such penalty in U.S. history. In all, Goldman’s penalties will exceed $5 billion globally.The deal, which was expected, concludes one of the biggest bank probes inherited by the Trump administration. It holds Goldman Sachs to account for its role in raising $6.5 billion for 1MDB, much of which U.S. authorities say was stolen by people connected to the country’s former prime minister and diverted into high-end art and real estate, a super yacht and the Hollywood movie “The Wolf of Wall Street.”MORE:Inside Goldman’s Five-Day Race to Seal a 1MDB Deal With MalaysiaGoldman’s 1MDB Charges Dropped by Malaysia After SettlementHow Malaysia’s 1MDB Scandal Shook the Financial World: QuickTakeEx-Trump Fundraiser Broidy Pleads Guilty to Illegal LobbyingNajib Sentenced to 12 Years in Jail in Former 1MDB Unit CaseFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In this week's episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP, dive into earnings from JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and Bank of America (NYSE: BAC) to look for the important points and trends investors need to know. Hear why Matt is keeping his eye on Live Oak Bancshares (NASDAQ: LOB) and Jason is watching Ameris Bancorp (NASDAQ: ABCB). To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
(Bloomberg) -- Goldman Sachs Group Inc.’s Asian unit was fined $350 million by Hong Kong’s financial regulator over its role in Malaysia’s 1MDB investment-fund scandal.The U.S. bank was “reprimanded” for “serious lapses and deficiencies in its management supervisory, risk, compliance and anti-money laundering controls,” the Securities and Futures Commission said in a statement. Goldman Sachs Asia’s acceptance of the SFC’s findings and disciplinary action facilitated an early resolution of the matter, it said.Goldman is also poised to reach a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion to resolve a criminal investigation into the bank’s role in the 1MDB scandal, people familiar with the matter told Bloomberg News this week.The settlement follows Goldman Sachs’ July agreement with Malaysia, in which the bank promised to pay $2.5 billion. Malaysia dropped criminal charges against the New York-based company in early September.A Hong Kong-based Goldman spokesman said on Thursday that the bank will issue a formal statement in due course.In all, Goldman Sachs may pay roughly $5 billion once accords with Malaysia, the Justice Department and other agencies are tallied together.Over much of a decade, 1MDB has become shorthand for one of the world’s most daring heists -- a conspiracy that spawned probes in Asia, the U.S. and Europe. Authorities spent years tracking funds that allegedly flowed from 1MDB into high-end art and real estate, a super yacht and, ironically, the hit Hollywood movie “The Wolf of Wall Street,” chronicling an earlier era of financial crimes.The bond sales raised a combined $6.5 billion and were arranged by Goldman Sachs International, a London-based unit.The Hong Kong regulator said Goldman’s Asia control hub based in the city “had significant involvement in the origination, approval, execution and sales process of the three 1MDB bond offerings.” The bank received 37% of the total revenue of $567 million generated from the bond offerings, or $210 million, the largest share among the various Goldman entities, the SFC said.(Updates with comment from Goldman in fifth paragraph. An earlier version corrected spelling in headline.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.