The Federal Reserve continues its investigation of how executives Goldman Sachs Group Inc. they avoided internal control of the bank and at the same time helped the Malaysian authorities increase billions of dollars that later disappeared, according to Kuala Lumpur / SINGAPORE / WASHINGTON / NEW YORK (November 30). people reported about it.
The probe examines the shares of a New York-based investment bank, as well as individuals, and has been swinging in the last few weeks, people said, asking them not to be identified because the query was confidential. The Fed does not have the authority of a criminal prosecutor, but can often sanction people involved in bank scandals.
The Fed has previously talked to current and former employees in the company, asking for easy alignment of alignment systems, people said. In recent weeks, representatives of Goldman Sachs met with Feda and defended the bank's control, according to a person familiar with things.
As the main regulator of Goldman Sachs, the Fed has a broad power to punish the bank or impose other changes. Earlier this year, it covered the size of Wells Fargo & Co. as long as the lender does not raise internal controls.
"Federal Reserve Policy has not confirmed or denied the existence of an investigation," the central bank said in an e-mail. "We refer to the penalties to the Ministry of Justice if necessary, and we are exercising our powers of enforcement and security and health care if the facts are true."
In pleading guilty, released this month, former leader of Southeast Asia, Goldman Sachs, Tim Leissner, said other coffers were being concealed to hide the facts from company and legal staff respect. Leissner said that he and his colleagues hid, for example, the involvement of controversial financially low Taek Jhoa while setting up to raise more than $ 6 billion on behalf of 1Malaysia Development Bhd., A Malaysian state investment company investigators said was plundered.
US state prosecutors have accused the Netherlands of not planning to pay off 1MDB money and pay damages to Malaysian government officials. Low and Malaysian groups allegedly diverted part of the money collected to personal accounts disguised to look like legitimate companies. Low maintains its innocence.
Leissner pleaded guilty to US accusations of embezzling money laundering and violating the Law on Foreign Corruption. It was ordered to lose $ 43.7 million. He accepted the bribing of officials in Malaysia and the United Arab Emirates for the conclusion of bond agreements for Goldman Sachs, and he said that he and others agreed to raise the 1MDB debt as it would generate higher bank fees.
In a statement to the court, Leissner said his behavior was "very good in his Goldman Sachs culture to hide the facts of certain compliance and legitimate employees". The Justice Ministry also said that Goldman Sachs business culture, especially in Southeast Asia, has prioritized consumer spending before the proper functioning of its compliance function.
Still, the DOJ files said that some bankers deliberately overlooked the controls the bank had in place and hiding certain details on the deal to prevent the compliance officers from blocking the company's involvement in the transaction.
Since prosecutors presented their indictments this month, analysts and investors have been trying to determine what a financial echo might be for Goldman. In background conversations with the authorities, the company presented information disparaging most of the guilt at Leissner, people with knowledge of these stock exchanges said. Still, he has publicly admitted that he can spend considerably on solving the case.
"The company received court calls and requests for documents and information from various government and regulatory bodies," including the Justice Department, the company wrote in a regulatory file this month that did not specify the interest of the Fed.
Goldman said in a statement he cooperated with investigators and, although he could not foresee the outcome, "any DOJ or other governmental or regulatory authority could result in significant fines, punishments and other sanctions."