How Will Goldman Sachs (GS) Stock Be Affected by Malaysian Fund Scandal?
How Will Goldman Sachs (GS) Stock Be Affected by Malaysian Fund Scandal?
By Rachel Aldrich Follow Jul 21, 2016 8:45 AM EDT
Malaysia's 1MDB fund reportedly diverted billions of dollars from bonds underwritten by Goldman Sachs (GS) for the personal use of company officials.
NEW YORK (TheStreet) -- Goldman Sachs (GS) is under fire this morning after the U.S. government alleged that Malaysian sovereign wealth fund 1MDB diverted billions of company dollars from bond sales issued by Goldman Sachs for the personal use of 1MDB officials, Reuters reports.
In 2012 and 2013, Goldman assisted the fund in raising $6.5 billion in three separate bond sales to invest in energy projects and real estate. The investments were meant to boost the Malaysian economy.
However, the U.S. Department of Justice accused 1MDB of diverting $2.5 billion of those earnings to company officials, relatives and associates to purchase artwork and properties and to pay off gambling debts....
