David Solomon Prepares ‘It Was The Last Guy’ 1MDB Defense

So, like, go easy on us.
getty images

getty images

The criminal charges leveled against two former Goldman Sachs bankers are decidedly not a good look for the bank or for its new CEO, David Solomon. This is especially true since at the time one of them admits he was laundering money and tossing around bribes to win Goldman the privilege of arranging $6.5 billion in loans for Malaysia’s apparently entirely criminal sovereign wealth fund, Solomon was in charge of Goldman’s investment bank, and thus those men’s boss.

Goldman has long maintained that it had no idea what Tim Leissner was up to when he wasn’t planning parties or doing entirely legitimate investment-banking things. It still maintains this. Unfortunately, some new shit has come to light that makes this defense a bit trickier. On the bright side for Solomon, though, he can point the finger at the guy in the fancy new office down the hall.

Two weeks later Lloyd Blankfein, one of the world’s most powerful bankers who at the time was chairman and chief executive of Goldman Sachs, attended a meeting with Mr Low and Najib Razak, who was then Malaysia’s prime minister….

The revelation that Mr Low met with Mr Blankfein at least once could undermine this “rogue employee” narrative…..

Prosecutors believe that Mr Low met on a second occasion with a senior Goldman executive in 2013 at a gathering that included the Malaysian PM and one of his family members….. A person briefed on the matter said that the unnamed executive at the 2013 meeting detailed in the filing was Mr Blankfein, although there is some doubt over whether Mr Low was at that second meeting.

Lloyd Blankfein revelation piles pressure on Goldman over 1MDB [FT]