Goldman Sachs may be ready to settle with the U.S. government over the 1MDB case through the admission of guilt and a $2 billion fine, according to a source familiar with the matter.
Discussions are still underway between the American bank and three U.S. regulators – the U.S. Department of Justice, Securities and Exchange Commission and the Federal Reserve - alongside New York’s Department of Financial Services, according to a «Wall Street Journal» (behind paywall) report citing the unnamed source.
Legally, Goldman Sachs would plead guilty to violating U.S. bribery laws, the report added, with a possibility for the settlement to be announced in late January.
In addition, the settlement deal could also potentially involve the bank installing an independent monitor to oversee compliance procedures and recommend revisions.
U.S. Dealmaking
U.S. authorities are rapidly making progress to settle with key participants of the 1MDB scandal with Goldman Sachs potentially being the next.
Most recently, former Goldman banker Tim Leissner was barred from the industry by the SEC which secured a settlement deal that included the forfeiture of $43.7 million. The amount was obtained as part of Leissner’s role in facilitating bribes to senior officials in Malaysia and Abu Dhabi which resulted in $600 million in fees earned by Goldman Sachs, according to the U.S. Justice Department.
