Malaysia Demands $7.5B in Reparations From Goldman Sachs Over 1MDB Scandal

Malaysia is seeking a $7.5 billion reparation payment from Goldman Sachs over the investment bank’s involvement in the 1MDB scandal, which saw the misuse of billions in state funding. Malaysian prosecutors filed charges against Goldman this week regarding its role as underwriter and arranger of three bond sales that raised $6.5 billion for 1Malaysia Development Berhad (1MDB). The U.S. Department of Justice alleges some $4.5 billion was misappropriated from the fund and used to buy extravagances such as real estate in London and New York, expensive jewelry and artwork, and a private jet. According to the Financial Times, Malaysian Finance Minister Lim Guan Eng said reparations from Goldman should be far higher than the $1.8 billion sum the bank has told investors it had set aside for the legal case. “Their figure is $1.8 billion. Ours is $7.5 billion,” Lim said. Goldman has denied wrongdoing and said members of the former Malaysian government and state fund lied to it about the proceeds of the bond sales.