WASHINGTON: The U.S. Federal Reserve said on Tuesday that it permanently barred a former Goldman Sachs Group Inc executive from the banking industry over his role in Malaysia's multi-billion-dollar 1MDB corruption scandal. The Federal Reserve said that Vella did not flag Low's involvement despite knowing that Low was a "person of known concern" to Goldman Sachs. According to the statement from the Federal Reserve, Vella consented to the bar without admitting or denying any of the allegations made by the regulator. A spokeswoman for Goldman Sachs confirmed that Vella had left the firm in recent days after being on leave since October 2018. The U.S. Justice Department says that $4.5 billion was misappropriated by high-level 1MDB fund officials and their associates between 2009 and 2014.

Source: The Star February 04, 2020 17:48 UTC