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Goldman Sachs to pay $2.8 billion to U.S. government, admit wrongdoing in Malaysian bribery scandal

The financial institution will pay the price and admit wrongdoing, but defer charges.

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Goldman Sachs
Goldman Sachs
(SOPA Images / Getty Images)
Updated: October 20, 2020 - 12:39pm

The Wall Street firm Goldman Sachs has agreed to pay the federal government about $2.8 billion and publicly admit to wrongdoing in the Malaysian bribery scandal popularly known as 1MDB. 

According to the agreement, Goldman accepts fault for its work with a corrupt Asian government investment fund, and prosecution will be deferred.

Goldman's deal with the Justice Department puts an end to the multiyear ordeal that stretched across the globe.

In July, Goldman agreed to pay the Malaysian government $2.5 billion for its role. The Malaysian prime minister was also found guilty of abuse of power for his role.

Goldman will not have to hire a compliance monitor, which is often part of such agreement. The firm is still dealing with the compliance monitor assigned to it following the 2008 housing crisis.

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