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 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.