Goldman Sachs Shares Plunge After Malaysia Files Criminal Charges in 1MDB Probe
Malaysia filed criminal charges against Goldman Sachs in the ongoing 1MDB investigation on Monday morning. Goldman’s shares have been on the decline this quarter due to the 1MDB probe, and took a hit on Monday with the investment banking company facing new charges.
Goldman’s shares dropped 34% this year, and by 9:30 a.m. ET Monday morning, the shares took another hit, dropping 2.4%, CNBC reported. The company is now trading at the lowest level since Oct. 17, 2016, according to Market Watch.
The criminal charges were filed by Malaysia’s attorney general against Goldman Sachs, and two employees, Tim Leissner and Roger Ng, as well as former 1MDB employee Jasmine Loo and financier Jho Low under the country’s securities laws.
“The charges arise from the commission and abetment of false or misleading statements by all the accused in order to dishonestly misappropriate $2.7 billion from the proceeds of three bonds issued by the subsidiaries of 1MDB, which were arranged and underwritten by Goldman Sachs,” Attorney General Tommy Thomas said in a statement.
Goldman’s stocks rapidly plunged last month after Malaysia’s Minister of Finance said he would seek fines on the $600 million in fees received by Goldman on the 1MDB deals.
In a statement emailed to Reuters, a spokesperson for Goldman said the charges are “misdirected,” and added that the company is cooperating with authorities on the probe.