On Monday, Malaysia filed criminal charges against the Goldman Sachs Group. The charges that are pressed is related to the dealing of Goldman Sachs Group with the sovereign fund 1MDB.
The Blame Game
Goldman Sachs has fired back to the authorities stating that the latter Malaysian government needs to be blamed as it lied to the investment bank.
The authorities of Malaysia had charged the bank along with two of the former Goldman employees.
Tommy Thomas, the Attorney General announced in a statement that the Goldman Sachs and the fore other individuals who are involved in allegedly diverting some 2.7 billion dollars from the 1Malaysia Development Bhd also referred to as 1MDB will be send to jails.
He even added that the individuals responsible for the scandal will have to pay billions in fines as well.
This is for the very first time that Goldman Sachs who has persistently denied doing anything wrong or unfair has to face the charges in the 1Malyasia Development Berhad.
Goldman Sachs took a Defensive Stance
Michael DuVally, the spokesperson of Goldman Sachs stated in the defense of the bank. Certain members of the latter Malaysian Government as well as of the 1MDB lied to the Goldman, outside the council and then there were others who lied about the proceeds.
He even said that these criminal charges does not hamper the ability of Goldman of conducting its current business on the global scale.
On Monday, on the New York Stock Exchange the shares of Goldman Sachs wend down by 2.8 percent, it is the lowest that the shares of Goldman has been since the last September in the year 2016.
While it is hard to describe the impact these criminal charges will have on the Goldman Sachs but it appears as if the bank will raise the amount its currently investing to handle the situation.
Source: Reuters, US News