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The final bill for Goldman Sachs’s little Malaysian misadventure has at last come in, and it is breathtaking. On top of the $3.9 billion the bank has already agreed to pay, you know, the Malaysians it helped bilk of $6.5 billion, there’s $350 million to the authorities in Hong Kong, $122 to those in Singapore, and now $2.9 billion to the Justice Department and Securities and Exchange Commission at home or, as before, about as much money as it makes in three months. And while it’s not actually as bad as adding all of those very big numbers up into one really, really very big number—$1.4 billion of the Malaysia deal isn’t actually Goldman’s money at all, and the U.S. settlement includes credits for all of those foreign settlements that bring the final bill down to about $5.1 billion, it does get worse for the Elect: Not only was the U.S. settlement significantly larger than expected, they’ve had to admit they are not infallible.

Goldman Sachs's Malaysian subsidiary has pleaded guilty to charges that it conspired to violate US anti-bribery laws in a massive scheme involving the Southeast Asian country's sovereign wealth fund, known as 1MDB…. “We are not putting the lessons learned from this experience behind us," [CEO David Solomon] said. "When a colleague knowingly violates a firm policy, or much worse, the law, we — as a firm — have to accept responsibility and recognize the broader failure that individual behavior represents for our firm."

And since that’s an even greater crime than whatever the hell it is Goldman’s alleged to have done to a faraway country full of people of whom we know nothing, there must be an even more serious punishment. First, of those “colleagues knowingly violating firm policies”:

Goldman is seeking to claw back $76 million from the three former employees most implicated in the scandal, the bank’s board said Thursday. The names of the bankers are Timothy Leissner, Roger Ng and Andrea Vella.

Then, of those others late of the firm who should have known better.

On top of that, five former senior executives including Blankfein have been asked to return $67 million in long-term compensation awarded back in 2011.

And lastly, those left behind to clean up the mess.

Solomon, his chief operating officer, chief financial officer and international division head will have their 2020 pay cut by $31 million. Those awards will be paid out in February of next year.

Goldman is clawing back or cutting millions in pay from CEO Solomon, Blankfein and others over 1MDB [CNBC]
Goldman Clawbacks Are More Stunning Than $5 Billion Penalty [Bloomberg]
Goldman Sachs unit pleads guilty in Malaysian bribery case [CNN Business]
Goldman Fined $350 Million by Hong Kong Over 1MDB Scandal [Bloomberg]
Singapore fines Goldman Sachs US$122 million over 1MDB scandal [Business Times]


Brian Moynihan/Getty Images

Bonus Watch ’20: BriMoy Backtracks, Still Stiffing Rainmakers

And David Solomon & co. are still paying for the sins of others.


David Solomon’s Honeymoon Comes To Abrupt End

Could this ex-partner’s guilty plea not have come, say, a month and a day ago?


Ex-Goldman Partner As Good At Forging Divorce Papers As He Was At Bribing Malaysian Officials

How one man was married to three women at the same time, and how it may sink the case against his old friend.

By Beyond My Ken (Own work) [GFDL or CC BY-SA 4.0-3.0-2.5-2.0-1.0], via Wikimedia Commons

Was Everyone At The SDNY Sick The Day They Taught Discovery At Law School?

There is a pattern developing, and not a good one if the Justice Department ever wants another Wall Street fraud conviction to stick.

(Goldman Sachs)

Current, Former Heads Of Goldman International Now Have Something Else In Common

But really, who at the bank hasn’t been indicted in Malaysia at this point?

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Oh, Just Get To The Serial Bigamy Already

Before we get to the juicy stuff at the ex-Goldman banker 1MDB trial, we’ve got to hear about all the fraud.

Not a place Goldman is particularly interested in visiting. Two hundred percent. [CC BY-SA 2.5], from Wikimedia Commons

Malaysia Is Not Buying What Goldman’s Selling This Time

$6.5 billion in bond deals? Sure. This cockamamie story about how you didn’t know people were stealing almost half of it? No.