from the 1MDB theft
This blog reported last year that James Shipton (pic above) the then newly appointed chairman of the Australian Securities And Investment Commission (ASIC), could not be assumed to not be involved in the 1MDB kleptocracy scandal.
Shipton was at the relevant time between 2004 and 2013 at Goldman Sachs in Asia, where he was, amongst other things
Head of Government and Regulatory Affairs .It was his job to work with government in order to further the interests of the firm.
Shipton has yet to explain why he should not be seen to
have been involved in Goldman's 1MDB deals.His silence has become even less tenable now that Goldman Sachs CEO David Solomon admitted that he "feel(s) horrible" that two ex-Goldman bankers “blatantly broke the law”.The attempt to isolate illegality aside,this is the first time that the CEO has spoken about Goldman's involvement in the 1MDB scandal in any meaningful way.
Meanwhile, the Financial Times, quoting Goldman insiders, has reported that over 30 Goldman Sachs personnel were involved in the 1MDB deals.
Against this backdrop, Shipton, ASIC and the Australia Government's silence on the matter of Shipton's involvement in the 1MDB scandal can only raise further suspicion about Shipton's acts and omissions with regards 1MDB.
Reference
Shipton was at the relevant time between 2004 and 2013 at Goldman Sachs in Asia, where he was, amongst other things
Head of Government and Regulatory Affairs .It was his job to work with government in order to further the interests of the firm.
Shipton has yet to explain why he should not be seen to
have been involved in Goldman's 1MDB deals.His silence has become even less tenable now that Goldman Sachs CEO David Solomon admitted that he "feel(s) horrible" that two ex-Goldman bankers “blatantly broke the law”.The attempt to isolate illegality aside,this is the first time that the CEO has spoken about Goldman's involvement in the 1MDB scandal in any meaningful way.
Meanwhile, the Financial Times, quoting Goldman insiders, has reported that over 30 Goldman Sachs personnel were involved in the 1MDB deals.
Against this backdrop, Shipton, ASIC and the Australia Government's silence on the matter of Shipton's involvement in the 1MDB scandal can only raise further suspicion about Shipton's acts and omissions with regards 1MDB.
END
Reference
Goldman Sachs CEO: I feel horrible ex-bankers broke law in 1MDB case
Published 3 hours ago on 07 November 2018
SINGAPORE, Nov 7 — Goldman Sachs Chief Executive David Solomon said today he felt “horrible” that two former employees “blatantly broke the law” in their dealings with Malaysian state fund 1Malaysia Development Berhad (1MDB).
US prosecutors filed criminal charges against the two former Goldman bankers and a Malaysian financier linked to the alleged theft of billions of dollars from the fund.
In investigation into where 1MDB’s money went became the largest carried out by the Department of Justice under its anti-kleptocracy programme, and the scandal was a major reason why Malaysian voters rejected Datuk Seri Najib Razak, their prime minister for nearly a decade, in an election earlier this year.
“It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law,” Solomon said in an interview with Bloomberg TV in Singapore.
“I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn’t matter whether it’s a partner or it’s an entry level employee, would go around our policies and break the law,” Solomon said.
US prosecutors announced last week that Tim Leissner, former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7 million (RM181.9 million).
Roger Ng, the other charged former Goldman banker, was arrested in Malaysia and is expected to be extradited.
Reuters was not immediately able to contact Ng’s lawyer today. His lawyer did not immediately respond to a request for comment after US prosecutors unveiled the charges last Thursday.
Goldman has also placed its former co-head of Asia investment banking, Andrea Vella, on leave over his role in the firm’s involvement with the case, pending a review of allegations, according to a person familiar with the decision.
The Wall Street bank said in a securities filing on Friday that it may also face penalties from dealings with 1MDB.
Asked if he could provide assurances that neither he, former CEO Lloyd Blankfein or any of the senior management team suspected illegality or compliance breaches in dealings with 1MDB, Solomon said:
“We take compliance and control in our firm extremely seriously, we always have... We are going to continue to cooperate with the authorities and there’s a process in place and that process will proceed.”
According to prosecutors, the investment bank generated about US$600 million in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised US$6.5 billion. Leissner, Ng and others received large bonuses in connection with that revenue.
Finance Minister Lim Guan Eng told Reuters in June that the government will be looking at the possibility of seeking claims from Goldman Sachs.
Prime Minister Tun Dr Mahathir Mohamad said Malaysia will look into why Goldman was paid around US$600 million in fees, an amount that critics say exceeds normal levels.
Goldman has maintained that the outsized fees related to the additional risks it took on — it bought the un-rated bonds while it sought investors and, in the case of the 2013 deal which raised US$2.7 billion, 1MDB wanted the funds in a hurry for a planned investment.
The new Malaysian government has barred Najib and his wife from leaving the country, and the former premier faces multiple charges of corruption, money laundering and abuse of power, though he has consistently denied any wrongdoing related to 1MDB.
In another interview with Bloomberg yesterday, Malaysia’s prime minister-in-waiting Datuk Seri Anwar Ibrahim said it would be “inexcusable” if Goldman Sachs was complicit in the scandal. — Reuters
…. Financial Times reported the Wall Street bank helped 1MDB sovereign wealth fund sell about RM27.06 bil (US$6.5bil) of bonds between 2012 and 2013, two years before Malaysian police raided 1MDB’s offices to investigate allegations of massive fraud.
Published 3 hours ago on 07 November 2018
SINGAPORE, Nov 7 — Goldman Sachs Chief Executive David Solomon said today he felt “horrible” that two former employees “blatantly broke the law” in their dealings with Malaysian state fund 1Malaysia Development Berhad (1MDB).
US prosecutors filed criminal charges against the two former Goldman bankers and a Malaysian financier linked to the alleged theft of billions of dollars from the fund.
In investigation into where 1MDB’s money went became the largest carried out by the Department of Justice under its anti-kleptocracy programme, and the scandal was a major reason why Malaysian voters rejected Datuk Seri Najib Razak, their prime minister for nearly a decade, in an election earlier this year.
“It is obviously very distressing to see two former Goldman Sachs employees went so blatantly around our policies and so blatantly broke the law,” Solomon said in an interview with Bloomberg TV in Singapore.
“I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn’t matter whether it’s a partner or it’s an entry level employee, would go around our policies and break the law,” Solomon said.
US prosecutors announced last week that Tim Leissner, former partner for Goldman Sachs in Asia, had pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act, and agreed to forfeit US$43.7 million (RM181.9 million).
Roger Ng, the other charged former Goldman banker, was arrested in Malaysia and is expected to be extradited.
Reuters was not immediately able to contact Ng’s lawyer today. His lawyer did not immediately respond to a request for comment after US prosecutors unveiled the charges last Thursday.
Goldman has also placed its former co-head of Asia investment banking, Andrea Vella, on leave over his role in the firm’s involvement with the case, pending a review of allegations, according to a person familiar with the decision.
The Wall Street bank said in a securities filing on Friday that it may also face penalties from dealings with 1MDB.
Asked if he could provide assurances that neither he, former CEO Lloyd Blankfein or any of the senior management team suspected illegality or compliance breaches in dealings with 1MDB, Solomon said:
“We take compliance and control in our firm extremely seriously, we always have... We are going to continue to cooperate with the authorities and there’s a process in place and that process will proceed.”
According to prosecutors, the investment bank generated about US$600 million in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised US$6.5 billion. Leissner, Ng and others received large bonuses in connection with that revenue.
Finance Minister Lim Guan Eng told Reuters in June that the government will be looking at the possibility of seeking claims from Goldman Sachs.
Prime Minister Tun Dr Mahathir Mohamad said Malaysia will look into why Goldman was paid around US$600 million in fees, an amount that critics say exceeds normal levels.
Goldman has maintained that the outsized fees related to the additional risks it took on — it bought the un-rated bonds while it sought investors and, in the case of the 2013 deal which raised US$2.7 billion, 1MDB wanted the funds in a hurry for a planned investment.
The new Malaysian government has barred Najib and his wife from leaving the country, and the former premier faces multiple charges of corruption, money laundering and abuse of power, though he has consistently denied any wrongdoing related to 1MDB.
In another interview with Bloomberg yesterday, Malaysia’s prime minister-in-waiting Datuk Seri Anwar Ibrahim said it would be “inexcusable” if Goldman Sachs was complicit in the scandal. — Reuters
FT and wires reported over the weekend 3-4 November 2018:
Over 30 Goldman Sachs executives including bank boss David Solomon and his predecessor, Lloyd Blankfein reviewed the 1Malaysia Development Berhad (1MDB) deals, according to sources familiar with the approval process.…. Financial Times reported the Wall Street bank helped 1MDB sovereign wealth fund sell about RM27.06 bil (US$6.5bil) of bonds between 2012 and 2013, two years before Malaysian police raided 1MDB’s offices to investigate allegations of massive fraud.
Company insiders were quoted saying the deal had been extensively scrutinised, since it involved not only the Malaysian sovereign wealth fund but also Abu Dhabi’s, which was teed up to buy some of the bonds.
Over 30 Goldman Sachs execs, top bosses reviewed 1MDB deals
- Nation
- Sunday, 4 Nov 20188:00 AM MYT
image: https://www.thestar.com.my/~/
PETALING JAYA: Over 30 Goldman Sachs executives including bank boss David Solomon and his predecessor, Lloyd Blankfein reviewed the 1Malaysia Development Berhad (1MDB) deals, according to sources familiar with the approval process.
The Financial Times reported the Wall Street bank helped 1MDB sovereign wealth fund sell about RM27.06 bil (US$6.5bil) of bonds between 2012 and 2013, two years before Malaysian police raided 1MDB’s offices to investigate allegations of massive fraud.
In a 2016 indictment, the US Department of Justice alleged that much of the money raised with Goldman’s help was siphoned off by Low Taek Jho, who funnelled it into everything from Beverly Hills properties to Van Gogh paintings.
The report added that DoJ, which is still exploring what sanctions if any Goldman should face, has brought criminal charges against former Goldman bankers Tim Leissner and Roger Ng .
Leissner had pleaded guilty to two counts of conspiring to commit money laundering and bribe foreign officials, the justice department said on Thursday. Ng was reported to be arrested in Malaysia on similar charges.
FT reported that Goldman declined to comment beyond saying that it is reviewing the DoJ’s filings and co-operating with the investigation.
In a filing to the Securities and Exchange Commission on Friday (Nov 2), the Wall Street firm estimated that possible losses related to litigation proceedings could run as high as $1.8bil (RM7.49 bil) above its total reserves for such matters. Previously, Goldman estimated litigation losses to be in an excess of $1.5bil (RM6.24 bil).
Company insiders were quoted saying the deal had been extensively scrutinised, since it involved not only the Malaysian sovereign wealth fund but also Abu Dhabi’s, which was teed up to buy some of the bonds.
“There were two sovereign wealth funds . . . everybody had a look at this,” said one banker who reviewed the deal. “You're not going to find that what happened . . . (was) because there wasn't an appropriate level of oversight.”
The source told FT that “everybody” included Blankfein and Solomon, who was head of Goldman’s investment banking division from 2006 to 2012, as well as Gary Cohn, then chief operating officer of the bank.
FT noted that a second person with knowledge of the deal’s approval process confirmed that more than 30 people at the bank reviewed it.
“There was no concern that the money was going to be stolen,” he said. “The concern was that this is a new sovereign wealth fund, the concerns expressed were ‘do they understand (the fundraising)?’”
Goldman received nearly RM2.487 bil (US$600mil) in fees from the deals. Rival bankers have said that the hefty fees the fund was willing to pay for the fundraising should have raised red flags.
FT reported that a senior official at Malaysia's finance ministry this week said Goldman charged between 9 to 11 per cent of funds raised.
The business daily reported that the second person with knowledge of the deal said Goldman offered 1MDB a menu of fee structures and that the fund picked one that involved the US bank taking the most risk on to its balance sheet. If the bond’s price had fallen, Goldman would have lost money.
The US bank has already taken a hit to its business in Singapore and Malaysia because of the scandal; clients in bigger Asian markets, including China and Japan, are not concerned, one Hong Kong-based Goldman Sachs source said.
During Friday trading in New York, the bank’s shares were slightly above where they were when the news broke the day before.
“I don’t think it has been or will prove to be a very big deal for Goldman Sachs investors,” said Jeff Harte, an analyst at Sandler O’Neill was quoted by FT.
“(It) looks like a few employees dodged Goldman Sachs's internal systems to secure business from 1MDB. Clearly not a positive, but not terrible or widespread.”
Tags / Keywords:Goldman Sachs 1MDB , Tim Leissner , Roger Ng , Jho Low
Read more at https://www.thestar.com.my/
PETALING JAYA: Over 30 Goldman Sachs executives including bank boss David Solomon and his predecessor, Lloyd Blankfein reviewed the 1Malaysia Development Berhad (1MDB) deals, according to sources familiar with the approval process.
The Financial Times reported the Wall Street bank helped 1MDB sovereign wealth fund sell about RM27.06 bil (US$6.5bil) of bonds between 2012 and 2013, two years before Malaysian police raided 1MDB’s offices to investigate allegations of massive fraud.
In a 2016 indictment, the US Department of Justice alleged that much of the money raised with Goldman’s help was siphoned off by Low Taek Jho, who funnelled it into everything from Beverly Hills properties to Van Gogh paintings.
The report added that DoJ, which is still exploring what sanctions if any Goldman should face, has brought criminal charges against former Goldman bankers Tim Leissner and Roger Ng .
Leissner had pleaded guilty to two counts of conspiring to commit money laundering and bribe foreign officials, the justice department said on Thursday. Ng was reported to be arrested in Malaysia on similar charges.
FT reported that Goldman declined to comment beyond saying that it is reviewing the DoJ’s filings and co-operating with the investigation.
In a filing to the Securities and Exchange Commission on Friday (Nov 2), the Wall Street firm estimated that possible losses related to litigation proceedings could run as high as $1.8bil (RM7.49 bil) above its total reserves for such matters. Previously, Goldman estimated litigation losses to be in an excess of $1.5bil (RM6.24 bil).
Company insiders were quoted saying the deal had been extensively scrutinised, since it involved not only the Malaysian sovereign wealth fund but also Abu Dhabi’s, which was teed up to buy some of the bonds.
“There were two sovereign wealth funds . . . everybody had a look at this,” said one banker who reviewed the deal. “You're not going to find that what happened . . . (was) because there wasn't an appropriate level of oversight.”
The source told FT that “everybody” included Blankfein and Solomon, who was head of Goldman’s investment banking division from 2006 to 2012, as well as Gary Cohn, then chief operating officer of the bank.
FT noted that a second person with knowledge of the deal’s approval process confirmed that more than 30 people at the bank reviewed it.
“There was no concern that the money was going to be stolen,” he said. “The concern was that this is a new sovereign wealth fund, the concerns expressed were ‘do they understand (the fundraising)?’”
Goldman received nearly RM2.487 bil (US$600mil) in fees from the deals. Rival bankers have said that the hefty fees the fund was willing to pay for the fundraising should have raised red flags.
FT reported that a senior official at Malaysia's finance ministry this week said Goldman charged between 9 to 11 per cent of funds raised.
The business daily reported that the second person with knowledge of the deal said Goldman offered 1MDB a menu of fee structures and that the fund picked one that involved the US bank taking the most risk on to its balance sheet. If the bond’s price had fallen, Goldman would have lost money.
The US bank has already taken a hit to its business in Singapore and Malaysia because of the scandal; clients in bigger Asian markets, including China and Japan, are not concerned, one Hong Kong-based Goldman Sachs source said.
During Friday trading in New York, the bank’s shares were slightly above where they were when the news broke the day before.
“I don’t think it has been or will prove to be a very big deal for Goldman Sachs investors,” said Jeff Harte, an analyst at Sandler O’Neill was quoted by FT.
“(It) looks like a few employees dodged Goldman Sachs's internal systems to secure business from 1MDB. Clearly not a positive, but not terrible or widespread.”
Tags / Keywords:Goldman Sachs 1MDB , Tim Leissner , Roger Ng , Jho Low
Read more at https://www.thestar.com.my/
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