London Daily

Focus on the big picture.
Friday, Mar 06, 2026

Goldman makes $3.9bn deal with Malaysia to buy out their criminal charges against Goldman Sachs

Goldman makes $3.9bn deal with Malaysia to buy out their criminal charges against Goldman Sachs

Goldman Sachs has reached a deal under which Malaysia will drop all criminal and regulatory proceedings against the US bank in exchange for $3.9 billion in reparations for its role in raising money for the troubled sovereign wealth fund 1MDB.
The settlement includes a payment of $2.5 billion to Malaysia, the ministry of finance said on Friday. It also guarantees that at least another $1.4 billion will come from 1MDB assets seized by authorities around the world, according to a Goldman Sachs statement.

The lender expects to “materially increase” provisions for litigation and regulatory proceedings for the second quarter of 2020 due to the settlement, which does not resolve other pending governmental and regulatory investigations related to 1MDB, it said.

The resolution with Malaysia moves Goldman closer to ending its biggest legal threat since the darkest days of the 2008 financial crisis.

Goldman helped the Malaysian government raise $6.5 billion for the 1MDB fund, collecting some $600 million in fees from bond sales in 2012 and 2013, according to court filings. Prosecutors allege that part of that money was diverted to 1MDB officials and their associates.

Former prime minister Najib Razak is on trial for corruption charges related to the looting of 1MDB allegedly orchestrated by Jho Low, a Penang-born financier now believed to be hiding in China.

Goldman and the US Department of Justice are close to an agreement in the US after tussling over a potential guilty plea, Bloomberg News reported earlier this month.

American banks have paid hundreds of billions of dollars in fines and settlements to the US government, with few admissions of actual guilt, stemming from malfeasance dating back to the days before the 2008 crisis.

Malaysian prosecutors brought charges against three units of Goldman Sachs in 2018, then followed with additional accusations against 17 of its current and former executives last year. The bank has consistently denied wrongdoing, saying that former Malaysian officials lied about how proceeds from the bond sales would be used.

The settlement covers pending criminal proceedings against Goldman subsidiaries and certain current and former directors, the bank said in its statement. The deal won’t affect charges against fugitive financier Jho Low or other parties, according to Malaysia’s finance ministry, which didn’t specify who that includes.

“This settlement represents Goldman’s acknowledgment of the misconduct of two of its former employees in the broader 1MDB fraudulent and corruption scheme,” the ministry said.

Goldman’s former Southeast Asia chairman Tim Leissner has pleaded guilty to US charges including conspiracy to launder money and has admitted to bribing officials in Malaysia and the United Arab Emirates to get bond deals for the bank. Former Goldman banker Roger Ng has been extradited from Malaysia to the US to face similar charges.

The settlement is a major milestone for Prime Minister Muhyiddin Yassin, a step toward ending Malaysia’s years-long effort to recover billions of dollars lost through the scandal.

In 2018, the affair led to the country’s first change of government since its independence, when Mahathir Mohamad took over as prime minister from Najib. The Mahathir government demanded as much as $7.5 billion from Goldman Sachs, while its negotiators had touted figures of around $2 billion to $3 billion in private discussions.

The state fund remains a sore political point even after another power shift this February, as Malaysia’s current government under Muhyiddin counts on the backing of the United Malays National Organisation, the former ruling party once led by Najib.
Newsletter

Related Articles

0:00
0:00
Close
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
France and United Kingdom Deploy Warships to Eastern Mediterranean as Middle East Conflict Escalates
U.K. Arrests Three Men Including Lawmaker’s Partner in Suspected China Espionage Investigation
Trump Says UK–US ‘Special Relationship’ Is Diminished Amid Middle East Dispute
UK Economic Forecasts Face Fresh Strain from Middle East Conflict and Rising Energy Costs
UK Reaffirms Close US Ties After Trump’s Public Criticism
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
×