trending Market Intelligence /marketintelligence/en/news-insights/trending/hCTJtiZI90UoLQ_xv6RCpQ2 content esgSubNav
In This List

Malaysia Securities Commission issues show-cause letter to Goldman Sachs


Banking Essentials Newsletter: September Edition, Part - 2


S&P Capital IQ Pro | Unrivaled Sector Coverage


S&P Capital IQ Pro | Powering Your Edge


Street Talk Episode 81: Amid strong recovery, Banc of California hearing more M&A chatter

Malaysia Securities Commission issues show-cause letter to Goldman Sachs

Syed Zaid Albar, the chairman of the Malaysia Securities Commission, said in a March 14 press conference that they have issued a show-cause letter to Goldman Sachs Group Inc., Reuters reported.

Show-cause letters typically require recipients to explain why they should not be sanctioned, Reuters noted.

Albar did not provide any details about the letter's contents or its issuance date and Goldman Sachs did not immediately comment when contacted by Reuters.

The Malaysian government in December 2018 filed charges against three units of Goldman Sachs over the investment banking giant's role in raising $6.5 billion for Malaysian state fund 1Malaysia Development Berhad, of which $2.7 billion was allegedly misappropriated, and allegedly providing misleading information in offering circulars for the bonds. Individuals also charged include former Goldman Sachs banker Timothy Leissner, who previously pleaded guilty to various charges related to the scandal, and Malaysian businessman Low Taek Jho.

The Malaysian government also charged former Goldman Sachs banker Roger Ng with four counts of helping the company provide misleading statements in the bond offerings. Ng appeared in court and pleaded not guilty to the charges. He is set to go to the U.S. to face charges filed by the U.S. Department of Justice, which alleged that he evaded internal accounting controls, paid bribes to various officials and conspired to launder money stolen from the Malaysian sovereign wealth fund.

Malaysia Finance Minister Lim Guang Eng said the government could consider dropping the charges filed, if Goldman Sachs pays $7.5 billion in reparation.