A former top Goldman Sachs banker in Asia reportedly wants to cut a deal with U.S. prosecutors investigating 1MDB. The move could pry open the long-running probe – and mean bad news for the U.S. bank.

Ex-Goldman Sachs  banker Tim Leissner has agreed to cooperate with prosecutors in the U.S. investigating an alleged $4.5 billion graft scheme, according to a report from «The Malaysian Insight». The German native and Los Angeles resident was nabbed while leaving his home in Austria two months ago, the website reported.

The illustrious banker's acquiescence to the long-running probe is significant: he associated closely with alleged 1MDB kingpin Jho Low, a relationship which ultimately cost Leissner his Goldman Sachs job. Leissner likely has substantial information about Low, who remains AWOL, but might also help U.S. prosecutors understand Goldman's role in lucrative bond deals for 1MDB.  

Rehabilitation

For Leissner, who was suspended from Goldman in 2016, barred from the U.S. securities industry, and banned from Singapore finance for ten years, the move may be an attempt to restore his battered reputation and eventually re-enter the business world.

Before Goldman dropped him, Leissner was reportedly a hard-partying banker who stood out for his chuzpah, even among Goldman's partners. He helped Goldman win almost $6.5 billion in bond deals from 1MDB, earning the bank $600 million in fees. Malaysia is mulling making a play for the fees to be recouped from the American bank.

The New York-based bank said that «since we suspended Mr. Leissner, we have discovered certain activities he undertook that were deliberately hidden from the firm,» according to «The Wall Street Journal». Goldman has reported the activities to authorities, and is cooperating, the bank said. 

Investigation Revived  

Leissner, who is married to fashion designer and former model Kimora Lee, foundered in his post-Goldman efforts: he reportedly partnered with an associate of Low's in attempting to buy a bank in Mauritius – the deal fell apart.

The former Goldman 1MDB kingmaker is surfacing as Malaysia puts renewed muscle into the 1MDB probe since Najib Razak was voted out as Malaysia's Prime Minister two months ago. Kuala Lumpur has switched in officials including at the central bank and as attorney general. Najib was arrested last week, and old-new PM Mohamad Mahathir has said his government has pinpointed Low.