As you may recall, former Malaysian Prime Minister Najib Razak allegedly turned his high office into $4.5 billion for his family and friends. He couldn’t have done it without the help of Goldman Sachs, which helped raise $6.5 billion for Malaysia’s sovereign wealth fund, 1MDB, $2.5 billion of which allegedly ended up in various senior officials’ checking accounts. And Goldman probably couldn’t have done it had it not hired Razak’s buddy’s daughter before winning that little mandate, which won Goldman $600 million in fees. Which, you know, on the whole seems fair, unless you are the new Malaysian government, and would like to get some of the $4.5 billion back.
The Malaysian government intends to seek restitution from Goldman Sachs, its new finance minister said this week, as it moves to resolve a huge scandal that led to the disappearance of billions of dollars and helped put the country deeply in debt….
The bank, which pocketed $600 million in fees for its work selling the bonds, said it was unaware of any wrongdoing.
“We helped raise money for a sovereign wealth fund that was designed to invest in Malaysia,” said Edward Naylor, a spokesman for Goldman Sachs.