With corporate cash balances looking flush again as businesses recover from the depths of the COVID-19 pandemic, Goldman Sachs strategist David Kostin thinks a stock buyback explosiion is coming. Yahoo Finance's Brian Sozzi weighs in.
Growth in total investment income, solid balance sheet position and rise in portfolio balance support Goldman Sachs BDC's (GSBD) Q1 earnings.
Deutsche Bank, JP Morgan and Coutts are among a raft of companies and individuals being sued by the Malaysian government as it fights to recover $23bn (£16bn) from the looting of its state fund 1MDB. The fund and its former unit SRC International have launched legal action against 25 individuals, nine companies and two foreign financial institutions for claims including fraud, conspiracy and breach of trust. Malaysia's finance ministry said: “1MDB and SRC contend that these entities and/or individuals have been unjustly enriched by wrongfully receiving monies from 1MDB or SRC." 1MDB was set up to fund infrastructure projects in Malaysia and transform Kuala Lumpur into an Asian financial hub. However, huge sums were siphoned off to fund the lavish lifestyles of influential families and spent on a superyacht, a Picasso painting, celebrity parties and luxury fashion. The ministry of finance did not name any of the companies it has filed claims against but JP Morgan, Deutsche Bank and Coutts are understood to be among them, according to Bloomberg. Najib Razak, Malaysia's former prime minister and founder of 1MDB, and Jho Low, the Malaysian financier educated at Harrow accused of masterminding the scandal, are also being sued, the Financial Times reported. The banks have been accused of acting as "conduits" for 1MDB for their role in providing fund services that included transferring and raising billions of dollars. Deutsche said it has not been served any papers and is "not aware of any basis for a legitimate claim against Deutsche Bank" while JP Morgan and Coutts declined to comment. The move comes months after JP Morgan's closest rival Goldman Sachs admitted that its Malaysian subsidiary bribed officials with more than $1bn so it could win a lucrative contract to help 1MDB issue more than $6bn in bonds. Goldman Sachs struck a $3.9bn settlement with Malaysia last July over its role in the corruption scheme. The Department of Justice said in October that Goldman had "participated in a sweeping international corruption scheme" so that it could reap hundreds of millions of dollars in fees "all to the detriment of the people of Malaysia and the reputation of American financial institutions operating abroad". In March, Deloitte's Malaysian business agreed to a $80m settlement with the government to resolve all claims related to the firm’s audit of 1MDB and SRC between 2011-2014. The 1MDB saga is one of the world's biggest financial scandals. US authorities have previously claimed that some of the 1MDB funds were laundered through luxury real estate purchases, art and jewellery in the US as well as through funding Hollywood movies including The Wolf of Wall Street, which starred Leonardo DiCaprio as corrupt trader Jordan Belfort.