INVESTMENT BANKING | Staff Reporter, Malaysia

Goldman Sachs to pay $3.9b over 1MDB scandal

Malaysia will drop all criminal charges against the bank.

Goldman Sachs will pay $3.9b as settlement over its role in Malaysia’s 1MDB scandal, reports Reuters.

The deal includes a $2.5b cash payout and a guarantee to return at least $1.4b in proceeds from assets linked to the sovereign wealth fund.

In return, Malaysia will drop all criminal charges against the bank, which had pleaded not guilty and consistently denied wrongdoing.

The settlement is the biggest Malaysia has reached so far in its efforts to recover funds allegedly stolen from 1MDB, and is considered a win for the four-month old administration of Prime Minister Muhyiddin Yassin.

Goldman Sachs’ shares rose 0.68% in New York morning trading on the Malaysia news and signals the US Department of Justice could be near closing a similar probe.

Here's more from Reuters.

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