News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Investment Banking

Goldman ignored 1MDB warning signs in pursuit of Asian business

Firm blames rogue bankers for dealings with scandal-plagued Malaysian investment fund, but engaged in lax oversight of partners

Goldman Sachs's push for Asian business and lax oversight of partners led the bank to dismiss warning signs in its dealings with a corrupt Malaysian investment fund, internal documents and interviews with people involved in the transactions show.

When the fund, 1Malaysia Development, first sought Goldman’s help raising money, the bond deal came before a committee of senior bankers in Hong Kong in 2012 for a key round of vetting.

WSJ Logo