Get More Than News. Get Insights.

Goldman Sachs’ Legal Bills are Getting Hefty

Goldman Sachs reported a great quarter on Wednesday.  Save for one thing –  their $1.1 billion legal bill related to some bad behavior in Malaysia.

The background:  It’s a long story – but we’ll give you a quick summary.  From 2012 to 2013, Goldman Sachs helped a Malaysian government investment fund called 1MDB raise $6.5 billion.  Then, over $4.5 billion of that money seemingly disappeared into thin air.  A few Goldman employees were directly involved with the siphoning of this money, while many others have been accused of failing to conduct proper due diligence.

But the ring-leader of the heist is believed to be a Malaysian financier named Jho Low.  Jho, who is still at-large, had quite a run galavanting with the cash.  

Couple big-ticket purchase highlights: 

  • $325k for a white Ferrari as a birthday present to Kim Kardashian
  • $8 million in jewelry for supermodel Miranda Kerr
  • $100 million investment into the production of Wolf of Wall Street

The Takeaway:

The fallout has been significant.  On top of meaningful reputational damage, the firm is negotiating a reported $2 billion fine with the U.S. Justice Department.

You may also like

The Daily Upside

Hey, we hope you are enjoying this pithy commentary.

FYI - most of our stories aren't posted online.
We are actually an email-first media company.

Join the thousands of people who read
The Daily Upside to stay sharp.

Engaging, witty, and best of all, free.  If you don’t like it, you can always unsubscribe.  As close to risk-free as this world gets.