Federal bank regulators on Tuesday barred a third Goldman Sachs employee from working for an American bank, the latest fallout from the Wall Street firm’s role in a scandal involving the looting of billions of dollars from a Malaysian sovereign wealth fund. In a settlement, the Federal Reserve found that the banker, Andrea Vella, had “engaged in unsafe and unsound practices” in connection with Goldman’s role in arranging bond sales to raise $6.5 billion for the 1Malaysia Development Berhad fund, known as 1MDB. The settlement did not require Mr. Vella to admit wrongdoing and did not require him to pay a financial penalty. Goldman is negotiating a settlement with federal prosecutors over its work with 1MDB, which led to criminal charges against two of Mr. Vella’s subordinates. Goldman could pay a fine of as much as $2 billion, and one of its subsidiaries in Asia could be required to enter a guilty plea.

Source: New York Times February 04, 2020 16:36 UTC