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M'sia will not compromise with Goldman, says Anwar

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Malaysia will not compromise with the investment giant Goldman Sachs Group Inc over the return of funds taken from state fund 1MDB, said Anwar Ibrahim.

In an interview with Bloomberg on Wednesday, the prime minister-in-waiting said that Goldman must bear responsibility for its action involving such funds.

He said the nation had a responsibility to unravel any crimes Goldman may have committed, but stated that he was unsure whether Malaysia could recover the US$7.5 billion it's seeking from Goldman as compensation.

Meanwhile, Fox Business reported that the scandal could cost Goldman roughly US$10 billion.

“The senior people at Goldman believe a year of earnings could be on the line because of this scandal,” it reported, quoting one senior Wall Street executive with ties to senior Goldman executives.

The report also quoted legal experts as saying that on top of the US$7.5 billion that the firm owed as mentioned by Anwar, Goldman was also facing US regulatory and civil fines which could make its ultimate payout exceed US$10 billion.

Last month, Goldman Sachs Group Inc chief executive officer David Solomon apologised to the Malaysian people for former banker Tim Leissner’s role in the 1MDB scandal.

US prosecutors had charged lst year two former Goldman bankers for the theft of billions of dollars from 1MDB.

Leissner, a former partner for Goldman Sachs in Asia, pleaded guilty to conspiracy to launder money and violate the US Foreign Corrupt Practices Act.

Roger Ng, the other charged former Goldman banker, was arrested in Malaysia at the request of US authorities and is expected to be extradited.

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