INSUBCONTINENT EXCLUSIVE:
Image copyrightReutersMalaysia has filed criminal charges against Goldman Sachs and two former employees in connection with a corruption and
money laundering probe at the country's investment fund, 1MDB.The US bank has been under scrutiny for its role in helping to raise funds
for the 1Malaysia Development Bhd (1MDB).It is being investigated in at least six countries.Goldman Sachs called the charges "misdirected"
and said it would "vigorously defend them"."The firm continues to co-operate with all authorities investigating these matters," the bank
added.Malaysia filed the charges against Goldman Sachs and its former bankers Tim Leissner and Roger Ng.Mr Leissner served as Goldman's
South East Asia chairman, and left the bank in 2016
Mr Ng was a managing director at Goldman until his departure in May 2014
Malaysia also filed charges against local financier Low Taek Jho, also known as Jho Low who maintains his innocence, and former 1MDB
employee Jasmine Loo Ai Swan.Last month, Mr Leissner, Mr Ng and Mr Low were served with criminal charges in the US in relation to 1MDB.Mr
Leissner pleaded guilty in the US to conspiring to launder money and violating anti-bribery laws.Image copyrightGetty ImagesImage caption
Jho Low (right) is seen with Wolf of Wall Street star Leonardo DiCaprio in 2013
US prosecutors said Mr
Leissner and Mr Ng worked with Mr Low to bribe government officials to win 1MDB business for Goldman Sachs.Authorities in the US said
billions of dollars were embezzled from the state fund - which was set up by the Prime Minister Najib Razak in 2009 - and were used to buy a
list of expensive properties, and even finance the Wolf of Wall Street movie.They allege that among the things bought by the money
were:L'Ermitage hotel property and businessPark Lane Hotel assets in New YorkFour California propertiesFour New York propertiesOne London
propertyA private jetEMI assets, including royaltiesVan Gogh paintingTwo Monet paintingsMalaysia's attorney general Tommy Thomas said in a
statement: "The charges arise from from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten
by Goldman Sachs." The scandal has prompted investigations around the world and played a role in the election defeat earlier this year of Mr
public - the first time a government has brought criminal charges against the bank over the 1MDB scandal.Now investors are waiting to see
what the US Department of Justice will do.The case US prosecutors outlined last month against bankers Tim Leissner, Roger Ng and Malaysian
financier Jho Low left Goldman's role up for debate
Image copyrightGetty ImagesImage caption
Tim Leissner, the former chairman of Goldman Sach's South East Asia
operation, is married to model and fashion designer Kimora Lee Simmons
Goldman Sachs underwrote around $6bn in bonds issued
by 1MDB in three separate offerings between 2012 and 2013.The Department of Justice accused the men of working around Goldman's compliance
office to do the deals.But it also noted that "other employees" had helped execute transactions in connection with 1MDB and in his guilty
plea, Mr Leissner said his actions were "very much in line" with the bank's culture.So will US officials decide the bank had weak
oversight Already, the investigation has clouded the reputation of departing chief executive, Lloyd Blankfein, while adding to troubles at
the bank, which has performed relatively poorly compared to its rivals this year
That said, a decade of post-financial crisis scandals has left Wall Street's banks bigger and more profitable than ever.If the US
Department of Justice chooses, for example, to level a fine against Goldman Sachs, it is questionable just how much impact that would really
have on the financial giant.
