Saturday , April 17 2021

Goldman Sachs CEO says "is indignant in person" for a 1MDB scandal, Europe News & Top Stories



LONDON (BLOOMBERG) – David Salomon received a message for employees of Goldman Sachs Group Inc. shaken by the signature's involvement in a multimillionaire fraud scandal: This is not us.

"I am personally outraged that any company employee undertakes detailed actions in government claims," ​​said the company's chief executive officer in a voice statement that remained with the employees on Wednesday (November 14).

"The behavior of these individuals is reprehensible and inconsistent with the good work and integrity that defines the work that 40,000 do every day."

The bank's actions have suffered since the prosecutors involved a trio of Goldman Sachs bankers in Malaysian multimillion-dollar fraud earlier this month.

On Monday, when the country's finance minister said he would seek a full refund of all fees he had paid for the Malaysian state fund 1Malaysia Development Berhad (1MDB) offers – Goldman shares fell more in seven years.

The stock of the bank fell a fifth consecutive day on Thursday, falling 0.3 percent at 11.43 in New York, starting the biggest five-day decline in seven years and cutting Goldman's market value by more than $ 10 million (S $ 13.75 million).

Analysts and investors have been trying to figure out what the financial scandal will be for the company, after he said in a deposit this month that he could face significant fines.

Solomon said in his voicemail that "any speculation in the press or elsewhere" on the results of the company "is completely unfounded."

A spokesman for Goldman Sachs confirmed the authenticity of voice mail and did not want to comment anymore.

MALAYSIA TIES

Goldman Sachs is trying to counter the arguments that blame is beyond some employees.

Tim Leissner, the former president of the Southeast Asian bank, admitted in a motive that bribed officers to obtain bonus agreements and said that a culture of secrecy in the investment bank led him to hide badly from the company's compliance staff.

The then CEO of Lloyd Blankfein, personally, helped to forge ties with the country and 1MDB years before Goldman Sachs had organized bonus deals at the heart of the probes.

Blankfein attended a 2009 meeting with the former Malaysian prime minister who laid the foundations for the relationship between the two entities, Bloomberg first reported earlier this month.

"Reputationally, it is a disaster for Goldman," said Oppenheimer & Co analyst, led by Mr. Chris Kotowski, in a note to clients this Wednesday. "Goldman is clearly at risk of significant accusations with significant sanctions in this case."

Analysts from Sanford C. Bernstein & Co estimated Goldman Sachs could see fines of up to $ 2 billion of the scandal, a figure they said was "finally controllable" for the firm.

"A group of people, including some of us in the executive office, are deeply focused on this matter," Mr. Salomón said in the voice mail.

"For the rest of us, our job is to concentrate on our clients, our business and many opportunities ahead."


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