Goldman Sachs’ 1MDB Settlement Exposes Rift Between Business and Compliance

By Valentina Pasquali and Daniel Bethencourt

Global investment bank Goldman Sachs agreed Thursday to pay nearly $3 billion and admit enabling a massive embezzlement from Malaysian state-fund 1MDB to settle a raft of civil and criminal charges in the U.S. and overseas. The historic case, which also saw Goldman's affiliate in Malaysia admit to paying bribes linked to the fraud, ends a 5-year investigation by several jurisdictions, including the U.S, Malaysia and Hong Kong, into the theft of $4.5 billion dollars from 1MDB, that had already triggered proceedings against a fugitive financier and at least three of the bank's former senior managers. Tim Leissner, ex-chair for...