Rafizi: Goldman Sachs distancing itself from 1MDB
The departure of a key Goldman Sachs banker may be an indication the bank is trying to distance itself from the 1MDB controversy it is plagued with, PKR vice-president Rafizi Ramli said.
"If anything, it is a sign that Goldman Sachs may be concerned about the effect of 1MDB on its business and image," Rafizi said yesterday.
According to Bloomberg , Tim Leissner, who was Goldman Sachs' regional chairperson for its Southeast Asia operations, left the bank earlier this month.
He was a key figure in setting up the bank's dealings with 1MDB.
The deals include US$3 billion in bonds Goldman Sachs underwrote for 1MDB, in which it earned a astronomical fee of US$300 million.
Rafizi said it was prudent for Goldman Sachs to distance itself from 1MDB.
"Given that 1MDB has caused investigations in the United States, United Kingdom, Switzerland and Singapore, it is expected that Goldman Sachs would want to limit its association with 1MDB.
"This is because investigations in these four separate jurisdictions give credibility to the allegations against 1MDB," he said.
The New York Times reported on Feb 13 that the US Federal Bureau of Investigations (FBI) was investigating 1MDB's transactions, which could cause Goldman Sachs to face a congressional inquiry.
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