Goldman corruption deal

GOLDMAN Sachs is on the verge of striking a £1.5bn settlement with US authorities over its role in a Malaysian corruption scandal, according to reports.

The bank helped raise cash for Malaysia’s 1MDB sovereign wealth fund which was allegedly misused to fund the lavish lifestyles of the country’s top officials.

Money was spent on a 300ft super-yacht, a private jet and even invested in the Martin Scorsese film The Wolf Of Wall Street, it is claimed.

But Goldman is accused of failing to sound the alarm as its client’s cash was looted. The bank, which is being investigated by the US Department of Justice over the affair, has long blamed the scandal on rogue staff.

But it could admit guilt and pay a £1.5bn in fines to settle the probes, the Wall Street Journal and Reuters reported. The bank and US officials are said to have discussed a deal in which a Goldman Asian subsidiary would plead guilty to violating US bribery laws. Goldman may also accept an independent monitor to oversee and recommend changes to its anti-corruption practices.

The settlement could be completed by the end of January. The bank said settlement talks were ongoing and it continued to cooperate with regulators.

Among 17 current and former Goldman executives accused over the scandal is Richard Gnodde, head of Goldman’s international arm and based in the City. He was charged in August. The bank has insisted no senior staff had knowledge of corruption and it is paying their legal fees.