Firm reflection on Leissner, case 1MDB



[ad_1]

David Salomon, Goldman Sachs

Andrew Harrer | Bloomberg | Getty Images

Goldman Sachs chief executive David Solomon said the investment bank was working hard to end the scandal of 1Malaysia Development Berhad.

"We spend a lot of time thinking and thinking about why we ended up hiring someone we hired in the company, promoted to the company, becoming a partner of the company. Business and become a criminal, "said Solomon. said Monday in an interview with David Faber of CNBC at the Milken Institute's global conference in Beverly Hills, California.

"We are aware of it, it is about us … We are working as diligently as possible to leave it behind and to continue to focus on our customers and our businesses," he added.

The person Solomon talked about is Tim Leissner, a Goldman partner who pleaded guilty to US-led corruption charges in August for his role in raising funds through bond investments for a fund. public investment called 1MDB.

Goldman has had its worst scandal since the financial crisis, with the fund being investigated for corruption and money laundering in at least six countries. The bank has always maintained as a defense that 1MDB is the result of a few bad employees, rather than something more general about the company or its culture.

"We have committed significant capital to a part of the world where the distribution process is not simple and simple.At these transactions, one of them was sold very quickly it took almost a year to distribute it.The risk is real, "Solomon said.

"If you really consider other transactions in other developed economies where you commit such capital, the risk premium to make that commitment, then structure, classify and distribute the paper, that does not go out of the way." Ordinary, "he added.

The bank's shares were battered last year following the scandal and fell by more than 34% in 2018. They have partially recovered this year, registering an increase of more than 23%.

[ad_2]

Source link