Goldman Sachs cuts earnings to pay for 1MDB settlement
Goldman Sachs Group Inc on Friday lowered its previously stated quarterly earnings as the bank set aside more money to pay for its settlement with the Malaysian government over the multi-billion 1MDB scandal.
Goldman Sachs Group Inc lowered its net earnings applicable to common shareholders to US$197 million from US$2.25 billion, in a filing published on Friday.
Goldman Sachs Group Inc on Friday lowered its previously stated quarterly earnings as the bank set aside more money to pay for its settlement with the Malaysian government over the multi-billion 1MDB scandal.
Goldman Sachs Group Inc lowered its net earnings applicable to common shareholders to US$197 million from US$2.25 billion, in a filing published on Friday.
The revised earnings reflect a larger-than-previously-announced provision for legal and regulatory costs due to a US$3.9-billion settlement the bank reached with the Malaysia government.
The bank said it set aside US$2.96 billion in the second quarter for potential legal and regulatory costs, up from the US$945-million Goldman said it set aside on July 15 during its second-quarter earnings announcement.
The bank's stock was down 0.1 percent in pre-market trading.
On July 24, Goldman agreed to pay the Malaysian government US$2.5 billion cash and return at least US$1.4 billion in proceeds from assets linked to sovereign wealth fund 1Malaysia Development Bhd (1MDB), in exchange for Malaysia dropping all criminal charges against the bank.
US and Malaysian authorities estimate US$4.5 billion was stolen from the fund between 2009 and 2014. Goldman helped the fund raise US$6.5 billion in two bond offerings, earning itself US$600 million in fees, according to the US Justice Department. - Reuters
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