|Bid||15.40 x 800|
|Ask||15.44 x 800|
|Day's Range||15.14 - 15.41|
|52 Week Range||8.00 - 22.50|
|Beta (5Y Monthly)||1.50|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 10, 2020|
|Forward Dividend & Yield||1.80 (11.75%)|
|Ex-Dividend Date||Jun 29, 2020|
|1y Target Est||15.38|
(Bloomberg) -- Goldman Sachs Group Inc. and Bank of America Corp. were left off Ant Group’s upcoming stock sale in Hong Kong because of their past work with rivals of its affiliate Alibaba, according to people familiar with the matter.Bankers have been told by senior executives at Alibaba Group Holding Ltd., which owns a third of Ant, that they should refrain from doing deals for its competitors if they want business from Jack Ma’s sprawling empire, the people said. Ant has kicked off plans to go public in Hong Kong and Shanghai in offerings that could top Saudi Aramco’s record $29 billion IPO.The directive shows that Wall Street banks are having to make early bets on which firms to stick with in China, especially as juggernauts like Alibaba and Tencent Holdings Ltd. extend their tentacles into hundreds of businesses in finance, transportation, retail and entertainment.“The duopoly issue is not unique to China, but the scale and scope of Alibaba and Tencent’s business operations create an excruciating dilemma for investment banks,” said Andy Mok, a senior research fellow at the Center for China and Globalization in Beijing. “Alibaba and Tencent’s businesses are so big, you can risk being blocked out of a significant future revenue stream.”While bankers everywhere have to be careful doing work for their clients’ rival firms, Chinese conglomerates are taking it to a new level. Even though banks have firewalls to ensure separate teams handle deals for the likes of Alibaba and Tencent, that’s proving to not be enough, the people familiar said.Chinese clients are much more likely than their counterparts in the U.S. or Europe to demand non-compete commitments as a show of loyalty, and to ensure that sensitive strategies don’t land in the hands of competitors. And with fewer deals to go around, bankers in the hyper-competitive Chinese market have little choice but to comply.Though minor distribution roles on Ant’s Hong Kong IPO are still up for grabs, those don’t offer the out-sized fees that banks can expect from leading the sale.“Competition has increased and Chinese issuers have gotten strong bargaining power,” said Bob Dodds, who worked as an investment banker at China International Capital Corp. before setting up DRP Capital Ltd. to advise on China-related deals.Goldman and Bank of America’s recent work with Alibaba rivals include $7.7 billion in stock sales for Tencent-backed Pinduoduo Inc. and JD.com Inc. in the last two years, helping these companies build their war chests to take on their larger competitor in the hotly contested e-commerce arena.The two banks have reaped at least $70 million from advising Pinduoduo and JD.com on stock deals, according to data compiled by Bloomberg. The figure doesn’t include the undisclosed fees of a $1 billion bond sale by Pinduoduo in September and the $4.5 billion secondary listing by JD.com in June.Representatives at Goldman and Bank of America declined to comment. Ant and Alibaba declined to comment in separate emailed statements.IPO BankersAnt is aggressively competing with Tencent’s WeChat Pay to maintain its dominance of China’s $29 trillion mobile payments space. It has been pitching digital payment services to the local arms of KFC Holding Co. and Marriott International Inc. as it transforms its Alipay app into an online mall for everything from loans and travel services to food delivery.Alipay’s share of mobile payments has increased for three consecutive quarters, rising to 55.1% in the fourth quarter, according to consultant iResearch. Tencent has 38.9% of the market.Ant hired Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley and CICC to lead its Hong Kong IPO. The sale is expected to raise more than $10 billion and could value the firm at $200 billion, people familiar have said. Ant hasn’t selected banks for the Shanghai portion, though global firms will probably be left out because lead underwriters for any IPO on the tech-focused Star board must buy shares in the deal.Banks leading the Ant IPO in Hong Kong have fewer conflicts. While Morgan Stanley earned $6.4 million for a junior role in Pinduoduo’s stock sale last year -- about half of Goldman’s haul -- Citigroup and JPMorgan weren’t involved in those deals, Bloomberg data shows.(Adds details on Alipay and WeChat Pay’s market share in 13th paragraph. An earlier version of the story was corrected to show Ant has kicked off its IPO process.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- SAP SE is working with Morgan Stanley and JPMorgan Chase & Co. on its plans to list its Qualtrics software unit in the U.S., according to people familiar with the matter.Less than two years after buying the company for $8 billion, SAP announced this week it would pursue an initial public offering the unit, signaling a strategic shift under new Chief Executive Officer Christian Klein.SAP will keep a majority stake in the business after the U.S. listing, which in turn will make Qualtrics co-founder Ryan Smith the biggest single shareholder, the company has said.SAP is seeking to maintain ownership of at least three quarters of Qualtrics although its plans aren’t finalized and could still change, the people said, asking not to be identified because the matter is private.SAP is also in talks with Goldman Sachs Group Inc. about a role and is likely to hire several more banks as underwriters as the listing gets closer, the people said.Morgan Stanley and Goldman Sachs were the lead underwriters on Qualtrics’s planned IPO in 2018, before it was instead acquired by SAP. JPMorgan was not listed as an underwriter on that deal, filings from the time show.Representatives for SAP, Qualtrics, Morgan Stanley, JPMorgan and Goldman Sachs declined to comment.An IPO could value Qualtrics, which measures and generates reports on customer and employee satisfaction, at as much as 16 billion euros ($18.9 billion), according to Bloomberg Intelligence analysis, more than twice what SAP agreed to pay in late 2018 in its biggest-ever acquisition.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs Group (NYSE: GS) shares are trading lower on Thursday amid macro concerns following a steep decline in U.S. GDP and rising jobless claims, a well as weakness in tech names ahead of this week's earnings.Goldman Sachs is a global investment banking firm whose activities are organized into investment banking (20% of net revenue), global markets (40% of net revenue), asset management (25% of net revenue), and consumer and wealth management (15% of net revenue) segments.Approximately 60% of the company's net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa. In 2008, Goldman reorganized itself as a financial holding company regulated by the Federal Reserve System.Goldman Sachs shares are trading down 2.85% at $196.67 on Thursday during the time of publication. The stock has a 52-week high of $250.36 and a 52-week low of $130.85 per share.See more from Benzinga * Tapestry CEO Jide Zeitlin Resigns Suddenly(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- As negotiators from Goldman Sachs Group Inc. and the Malaysian government gathered at the Mandarin Oriental hotel in Kuala Lumpur last week, the two sides could hardly have been further apart on a 1MDB deal.The storied U.S. bank, needing to turn the page on one of the biggest scandals in its history, started with the same offer it made to the previous government: $1.75 billion.While this was a step up from the 1 billion ringgit ($235 million) that former leader Mahathir Mohamad said the bank offered last year, it was a far cry from Malaysia’s demand: more than $7 billion to resolve probes into the role Goldman’s bankers played in a scheme to plunder the nation’s sovereign wealth fund.With that glaring $5.25 billion gap, the two sides dug in to negotiate in a meeting room at the Kuala Lumpur five-star hotel, a favorite of the country’s former monarch, perched steps from the iconic Petronas Twin Towers.This account of the talks is from people familiar with the negotiations who declined to be identified discussing private matters. A representative for Goldman declined to comment, while the prime minister’s office couldn’t immediately comment on the matter.Digging InGoldman flew some heavy hitters 9,400 miles (15,200 kilometers) from New York to sit at the table. Chief of Staff John Rogers, once an aide to former President Ronald Reagan, was there. So was General Counsel Karen Seymour, famous for prosecuting Martha Stewart. Lawyer David Markowitz posed a particular challenge for Malaysia, digging his heels in the most.On the other side, Malaysia brought its top lawyers including Prime Minister Muhyiddin Yassin’s attorney Rosli Dahlan, as well as Secretary General of Treasury Asri Hamidon and Securities Commission Chairman Syed Zaid Albar.Negotiations dragged on through the week. Long days stretched into night, with hotel staff delivering boxed meals including local rice dishes, in keeping with Covid-19 measures. The talks stalled a few times as Malaysia pressed Goldman to cough up more toward the billions the country alleges were siphoned away to buy condos, jewelry and art.Goldman’s investment-banking group, led at the time by now-Chief Executive Officer David Solomon, collected an unusually high $600 million for its work raising $6.5 billion from bond sales for the 1MDB fund. The bank has consistently denied wrongdoing, saying that former Malaysian officials lied about how the proceeds would be used.When a $2.2 billion offer was put on the table, Malaysia said it wasn’t enough.Yet the two sides kept at it, both highly motivated to reach a deal. For Goldman, a Malaysia settlement would go a long way in securing a resolution with the U.S. Department of Justice, which is also probing the 1MDB affair. Attorney General William Barr is overseeing the case after getting a waiver because his former law firm represents Goldman. A defeat of Donald Trump in November elections could upset that plan if there’s no settlement by then.Several Goldman bankers have already paid a price for the scandal. Former Southeast Asia Chairman Tim Leissner pleaded guilty to U.S. charges including conspiracy to launder money. Former banker Roger Ng faces similar charges while Andrea Vella, a former co-head of investment banking in Asia, was banned from the industry by the Federal Reserve this year.The Goldman side also felt this five-month old Muhyiddin government was easier to deal with than the previous administration, increasing the odds of a settlement.Muhyiddin needed to prove his anti-corruption mettle, even while counting on the backing of a rival party that was in power during the scandal over the fund formally known as 1Malaysia Development Bhd. With his razor-thin majority in parliament, Muhyiddin’s attacks on corruption could help win allies across the aisle.As talks wore on, Goldman proposed a novel solution to break the impasse: A guarantee that Malaysia would get $1.4 billion from the seizure of missing 1MDB assets. The sweetener wasn’t dreamed up on the spot: Goldman had the offer in its back pocket all along in case it was needed to reach a deal.Sweetened DealAny additional money recovered would go to the country, while Goldman stood ready to bridge any gap.The assets, many of which were allegedly purchased using 1MDB funds by fugitive businessman Low Taek Jho, include a penthouse apartment in Manhattan’s art deco Walker Tower, a mansion overlooking the Sunset Strip in Los Angeles, and an Andy Warhol ‘Campbell’s Soup Can’ painting worth $6 million. There’s a vintage French “King Kong” poster, and a 300-foot super yacht named ‘Equanimity,’ seized off the coast of Bali that has since been sold.To seal the deal, Goldman also agreed to boost the cash portion of the settlement to $2.5 billion, ending five days of marathon talks. Negotiators put ink to paper late afternoon on July 24.Deal WinnersIn the end, both sides can at least claim victory with the settlement.Goldman gets to move on, ending the reputational hit from the scandal and ensuring there are no further legal claims from Malaysia after the nation agreed to drop all criminal charges against the bank and its executives. The lender may not have to pay a dime above the $2.5 billion in cash. Based on its valuation analysis of the assets, it sees no significant risk exposure from the $1.4 billion guarantee. Already, the Justice Department has seized more than $1 billion of assets as part of its 1MDB lawsuit.Malaysia, meanwhile, says the deal is worth more than $4.5 billion, including the money it already received from the U.S. That’s a sizable amount -- worth more than 1% of GDP -- for a country that stood up to one of Wall Street’s iconic banks.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs Merchant Banking Division (MBD) is seeking up to US$17bn for private credit investments for senior debt financings and special situations transactions, according to documents from Connecticut's state pension plan. Consisting of total investor commitments and anticipated leverage, MBD is targeting US$7bn for Broad Street Loan Partners IV (Loan Partners IV), according to the documents. A Goldman Sachs spokesperson declined to comment.
A special purpose acquisition company (SPAC) is a publicly traded shell company formed for the purpose of acquiring a privately held company, which has the effect of taking that acquired company public. GS Acquisition Holdings Corp II (NYSE: GSAH.U) is the second SPAC created by renowned investment bank Goldman Sachs. Should investors trust Goldman Sachs and invest in the new SPAC?
Former Prime Minister of Malaysia Najib Razak was found guilty by a court in Malaysia on Monday in a money laundering case involving Goldman Sachs Group, Inc (NYSE: GS), the Wall Street Journal reported.What Happened The guilty verdict pertains to the 1Malaysia Development Bhd. fund (1MDB). It's alleged that Najib received hundreds of millions of dollars from the fund, launched in 2009.Investigators in the United States claim that more than $4.5 billion was siphoned off between 2009 and 2014 and laundered through Hollywood productions, real estate, artworks and a luxury yacht.Najib has been found guilty of all seven charges against him, including abuse of power and criminal breach of trust. A unit operating under 1MDB had allegedly transferred $10 million to the former prime minister's personal bank accounts. Each charge carries a maximum sentence of 15 to 20 years in prison.Why It Matters Last week, Goldman Sachs agreed to pay the Malaysian government $2.5 billion and also guaranteed recovery of $1.4 billion in stolen assets, the Journal noted. The beleaguered prime minister's stepson Riza Aziz has reached a settlement with the Malaysian government over the 1MDB scandal, which will see the authorities recover $107.3 million in assets abroad, Bloomberg reported.Riza is the producer of the Leonardo DiCaprio starrer "The Wolf of Wall Street." His co-founded production house Red Granite Pictures Inc previously reached a $60 million settlement with U.S. Justice Department over allegations that the movie was funded by money stolen from the Malaysian state fund.Price Action Goldman Sachs shares closed 0.77% higher at $203.02 on Monday.Photo courtesy: Firdaus Latif on Wikimedia CommonsSee more from Benzinga * Credit Suisse Silently Invested 0M In Alibaba Subsidiary Ant Financial, Set To Benefit Immensely In Public Debut * Norwegian Announces Pricing Of Its 0M Public Offering * Goldman Sachs-Backed Card Issuer Marqeta Gets Ready To Go Public(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
U.S. investment bank Goldman Sachs Group Inc is adopting a performance review system that will grade up to 10% of its 39,000 employees as under-performers this year, according to an internal memo sent on Monday, potentially leading to more job cuts in 2021 than the bank has made in recent years. Goldman Sachs' new head of human resources, Bentley de Beyer, who joined the bank in January, is revamping its opaque performance review process to make it more transparent and determine what proportion of staff is put in each grouping, said bank spokeswoman Leslie Shribman. The bank's main goal is to let staff know where they stand as roughly 90% of the bank's workforce works from home due to COVID-19 restrictions, said Shribman, who verified the contents of the memo seen by Reuters.
Goldman resolves the multibillion-dollar 1Malaysia Development Berhad (1MDB) scandal by agreeing to pay $3.9 billion in the settlement to the Government of Malaysia.
(Bloomberg) -- After Malaysia reached a deal to drop the 1MDB case against Goldman Sachs Group Inc., the spotlight now falls on the upcoming first verdict in former leader Najib Razak’s series of trials involving the troubled state fund.The High Court will announce on Tuesday whether Najib is guilty of corruption and money laundering charges. He has repeatedly denied any wrongdoing. That comes days after Malaysia resolved settlement talks with Goldman Sachs over the bank’s role in raising funds for 1MDB during Najib’s time as prime minister. Goldman agreed on a $3.9 billion settlement, including $2.5 billion in cash, in return for all its charges being dropped.The deal with the U.S. bank doesn’t hinder Malaysia from pursuing claims against individuals such as Najib. The former leader has sought to defend himself by pleading ignorance as to how 42 million ringgit ($10 million) was deposited in his accounts, allegedly from a former unit of 1MDB. He faces a total of seven charges in the case, each carrying punishments ranging from a maximum of five to 20 years imprisonment as well as fines.“So whether he is found guilty or not guilty, the trial itself is historic,” said James Chin, head of the Asia Institute at the University of Tasmania. “Currently most people in Kuala Lumpur think that he will not be found guilty so he will probably get away. But as I mentioned, even if he is found guilty, it will probably be reversed during the appeal process.”Opposition’s CriticismPrime Minister Muhyiddin Yassin’s government came into power on the backing of a party once led by Najib. It followed the fall of the earlier administration that ousted Najib in 2018 then presented him with the 1MDB-related charges. Muhyiddin faced public backlash when prosecutors reached a deal to drop 1MDB-related charges against Najib’s stepson Riza Aziz, even as Muhyiddin repeatedly pledged to ensure justice in the proceedings.The government is aware that the longer the 1MDB issue drags on, the worse it would look for them, said Chin.Even the Goldman settlement, which Muhyiddin welcomed, was met with criticism from the opposition that had demanded a heftier $7.5 billion compensation when they were in power. Muhyiddin controls a razor-thin majority in parliament and talk of a snap election has heated up in the past weeks from both sides of the aisle.Najib’s verdict is a culmination of a yearlong hearing in which his lawyers sought to argue that he had been misled by others, such as fugitive financier Low Taek Jho who faces his own set of charges. Najib testified that he acted in the best interests of the country and sought to show that he consulted the cabinet, 1MDB executives and his advisers at every step of the relevant transactions.Prosecutors have questioned dozens of witnesses, including a central bank official and a former cabinet minister, to argue Najib engaged in a “planned, premeditated criminal breach of trust case” that ran over many years.The trial is only the first of at least three involving Najib. He faces a total of 42 corruption and money-laundering charges, including those linked to billion-dollar acquisitions and bond sales by the scandal-ridden fund.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs (NYSE: GS) has agreed with the government of Malaysia to settle a criminal investigation over alleged wrongdoing in that country's high-profile 1MDB scandal. Goldman Sachs will pay a total of $3.9 billion in the settlement. 1MDB stands for 1Malaysia Development Berhad, a strategic development fund owned and operated by the government of the sprawling Asian country.
(Bloomberg) -- Goldman Sachs Group Inc.’s $3.9 billion deal with Malaysia to settle criminal and regulatory probes of its role in the 1MDB scandal lifts a major cloud hanging over the stock, even if the bank may be paying a premium to resolve the issue, analysts say.The lender and the Department of Justice are also close to an agreement in the U.S. after tussling over a potential guilty plea. Last week, Goldman reported blow-out second-quarter earnings, while investors are keeping a close eye on the ramifications for financial regulation if Joe Biden defeats President Trump in November.Goldman shares rose as much as 0.9% in early trading Friday. The bank is trailing the broader market but outperforming financial stocks so far this year, losing 12% compared with a 21% decline for the S&P 500 Financials Index and a 0.8% dip for the S&P 500.Here’s a sample of the latest commentary:Wells Fargo, Mike MayoGoldman may be “paying an extra ‘time premium’ to get this matter resolved,” Mayo wrote in a note. On Thursday, he’d stressed the need for a deal as U.S. elections approach, but hadn’t expected it would be this fast, he said. Even with a premium, the deal was “still worth it and would be below the worst investor estimates of $10 billion.”The bank still has to resolve payments with the Justice Department, which may take the total settlement to $4.5 billion, more than Mayo’s prior estimate of $3 billion to $4 billion. Investors should know by around Aug. 10 or before, he said.JPMorgan, Kian AbouhosseinAbouhossein sees the $2.5 billion cash payment to Malaysia as part of the settlement being “broadly in line with expectations and positive for the stock as it removes a major litigation overhang.”Resolving 1MDB “should improve sentiment on the stock and also allow management to spend more time on the core business.”BofA, Michael CarrierCarrier now sees settlement with the Justice Department “in the near term,” with a fine of about $2 billion. Also expects Goldman’s dividend payment is safe, after strong earnings.Wolfe Research, Steven ChubakThe deal with Malaysia is “positive as Goldman is closer to removing a key overhang for investors,” providing “added comfort that the total settlement amount should be manageable,” Chubak wrote.Expected shares would rise as “the settlement amount is less than feared as the Malaysian government has stated publicly in the past that they would seek reparations of $7.5 billion” or more. He added that it’s still unknown how the Malaysian deal may affect negotiations with the U.S., but “some relief” may be “extended to Goldman given DOJ guidance to avoid ‘piling on’ in settlements under the Foreign Corrupt Practices Act.”Evercore ISI, Glenn Schorr“Unfortunately, Goldman will still have to settle with the DOJ to move on completely and if past major foreign corrupt practice cases are a good indicator (which we think they are), the DOJ settlement could wipe out most of the great second quarter they just put up,” Schorr wrote.Goldman can probably “take this lump and move on quickly enough,” and investors should “think of it as one more quarter of buyback delay,” he added.Bloomberg Intelligence, Elliott Stein and Alison Williams“Goldman Sachs’ $3.9 billion settlement with Malaysia over 1MDB, announced July 24, should pave the way for the bank to settle with U.S. authorities. A U.S. settlement may be about $2 billion, based on fees earned and news reports. A potential guilty plea would be manageable, in our view.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs will fork up $3.9 billion to settle a dispute with the Malaysian government over a multibillion-dollar scandal involving a state investment fund. Malaysia's finance ministry said Friday Goldman has agreed to pay $2.5 billion in cash and guarantee the return of at least $1.4 billion in assets related to deals the investment bank ran for the fund. Goldman confirmed the settlement. Known as 1MDB, the sovereign wealth fund was aimed at promoting economic development. The American bank had helped raise $6.5 billion for that fund. Two years ago, Malaysian prosecutors charged three Goldman Sachs units of misleading investors over those bond sales. U.S. and Malaysian authorities said about $4.5 billion was stolen from 1MDB in an elaborate worldwide scheme. U.S. lawsuits said the siphoned funds were allegedly used to buy assets like yachts and Picasso and Monet artworks and finance Hollywood films like "The Wolf of Wall Street." The Goldman units had pleaded not guilty. Goldman said certain members of the former Malaysian government and 1MDB had lied to it about how the bond proceeds would be used.
(Bloomberg) -- Goldman Sachs Group Inc. has reached a $3.9 billion pact with Malaysia, marking a big step in the Wall Street giant’s efforts to resolve its worst scandal since the financial crisis.The settlement includes a payment of $2.5 billion to Malaysia to resolve probes into the U.S. bank’s role in a scheme to plunder the Asian nation’s 1MDB investment fund, the ministry of finance said on Friday. It also guarantees that at least an additional $1.4 billion will come from 1MDB assets seized by authorities around the world, according to a Goldman Sachs statement.Over much of a decade, 1MDB has become shorthand for one of the world’s most daring heists -- a conspiracy that spawned probes in Asia, the U.S. and Europe. Authorities spent years tracking funds that allegedly flowed from 1MDB into high-end art and real estate, a super yacht and, ironically, the hit Hollywood movie “The Wolf of Wall Street,” chronicling an earlier era of financial crimes.The case against the Wall Street firm focuses on its work raising $6.5 billion in 2012 and 2013 for the fund formally known as 1Malaysia Development Bhd., much of which was allegedly siphoned off by people connected to the country’s former prime minister. Goldman’s investment-banking group, led at the time by now-Chief Executive Officer David Solomon, collected an unusually high $600 million from the bond sales.“This settlement represents Goldman’s acknowledgment of the misconduct of two of its former employees in the broader 1MDB fraudulent and corruption scheme,” Malaysia’s finance ministry said.The pact doesn’t resolve other pending governmental and regulatory probes related to 1MDB, including one from the U.S. Department of Justice. The firm is nearing a deal with the DOJ that could be announced next month.Much of the 1MDB saga centered around Jho Low, a once-obscure Malaysian financier whom prosecutors accused of orchestrating the theft. Low, who long professed his innocence, remains at large. But probes also drew in a number of Goldman employees: A former partner pleaded guilty to bribing government officials, his deputy was arrested and a top dealmaker in Asia was barred from the industry for life.The pact follows a decade that the Wall Street firm had spent trying to rehabilitate its image in the wake of the 2008 financial crisis. The bank has long mounted a defense centered on the argument that it was duped by rogue staff, and that it had no idea the money it helped raise for 1MDB would be diverted from development projects.Goldman Sachs said it expects to restate the second-quarter earnings it announced last week to “materially increase” provisions for litigation and regulatory proceedings due to the settlement. The bank said a valuation analysis on seized assets indicates it doesn’t face “significant risk” from providing the $1.4 billion guarantee.The firm’s shares climbed 0.6% at 9:32 a.m. in New York trading. The stock is down 11% this year.“Unfortunately, Goldman Sachs will still have to settle with the DOJ to move on completely and if past major foreign corrupt-practice cases are a good indicator -- which we think they are -- the DOJ settlement could wipe out most of the great 2Q they just put up,” Glenn Schorr of Evercore ISI said in a note to clients.Mike Mayo, a bank analyst at Wells Fargo & Co. said he now expects the total cost of the bank’s 1MDB settlements to be $4.5 billion, up from a previous estimate of $3 billion to $4 billion. Wolfe Research’s Steven Chubak estimated that the firm has already set aside more than $3 billion of legal reserves for 1MDB costs.For Malaysia, the agreed-upon sum along with money it has received from the Justice Department would amount to more than $4.5 billion, the finance ministry said. That would mean the nation has been largely made whole for the roughly $4.5 billion that prosecutors said was stolen over a number of years.Malaysian prosecutors brought charges against three units of the bank in 2018, then followed with additional accusations against 17 current and former Goldman executives last year. The bank has consistently denied wrongdoing, saying that former Malaysian officials lied about how proceeds from the bond sales would be used.The settlement covers pending criminal proceedings against Goldman Sachs subsidiaries and certain current and former directors, the bank said in its statement.Goldman’s former Southeast Asia Chairman Tim Leissner has pleaded guilty to U.S. charges including conspiracy to launder money and has admitted to bribing officials in Malaysia and the United Arab Emirates to get bond deals for the bank. Former Goldman banker Roger Ng has been extradited from Malaysia to the U.S. to face similar charges. Andrea Vella, a former co-head of investment banking in Asia, was permanently banned from the industry by the Federal Reserve earlier this year.The settlement is a major milestone for Prime Minister Muhyiddin Yassin, a step toward ending Malaysia’s years-long effort to recover billions of dollars lost through the scandal. In 2018, the affair led to the country’s first change of government since its independence, when Mahathir Mohamad took over as prime minister from Najib Razak, who now faces multiple charges related to 1MDB. The Mahathir government demanded as much as $7.5 billion from Goldman Sachs.The state fund remains a sore political point even after another power shift this February, as Malaysia’s current government under Muhyiddin counts on the backing of United Malays National Organisation, the former ruling party once led by Najib.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman Sachs drew a line under an embarrassing scandal Friday after agreeing to pay $3.9 billion to the Malaysia government in connection with a scandal linked to its sovereign wealth fund.
Goldman Sachs will pay $3.9 billion to settle Malaysia's criminal probe over the U.S. investment bank's role in the multibillion-dollar 1MDB scandal, closing a key front in the multi-jurisdictional investigation that has hung over Goldman. Goldman Sachs shares rose 0.68% in New York morning trading on the Malaysia news and signals the U.S. Department of Justice could be near closing a similar probe. A spokesman for the Justice Department declined to comment.
(Bloomberg) -- Goldman Sachs Group Inc. should reach a 1MDB settlement before the U.S. presidential election, according to Wells Fargo bank analyst Mike Mayo.“Time is of the essence given the November election, which could undo prior work,” Mayo wrote in a note. He slashed his estimate for Goldman’s third quarter generally accepted accounting principles earnings by $1 billion, or $2.15 per share, to account for a potential $3 billion to $4 billion settlement.Failure to reach a resolution in the quarter could set back not only the bank, but also Malaysia and the U.S. Department of Justice, he said. For Goldman, “no settlement would mean an ongoing stock overhang and uncertainty about a capital hit.”Earlier, Nikkei Asian Review reported that Goldman and Malaysia are in talks for a settlement that’s said to be worth close to $3 billion, and which may involve the bank providing services -- like sovereign bond issuance and disposal of state-linked companies -- to Malaysia’s government at a discount. Goldman is also nearing a resolution with the Justice Department after tussling over a potential guilty plea, which would be the first in Goldman’s history.Goldman Chief Executive David Solomon “heads the top deal firm, and it is time for him to make a deal happen regardless of the complexity,” Mayo said. He added that Goldman had “reserved aggressively for legal and regulatory issues” in the second quarter, which was likely due to 1MDB, and he flagged reports senior Goldman officials have traveled to Malaysia to pursue a settlement.Earlier in July, Goldman reported blow-out second-quarter earnings. The results were so good they were “almost indecent,” and might trigger a political backlash, Opimas CEO Octavio Marenzi cautioned. Investors are keeping a close eye on policymakers who will probably help craft financial strategy in a potential Biden administration, like Senator Elizabeth Warren, who is seen as a possible pick for Treasury secretary, and House Finance Committee Chair Maxine Waters.Goldman shares slipped as much as 0.9% Thursday to the lowest since July 10. The bank is underperforming the broader market but beating financial stocks so far this year, with an 11% drop compared to a 21% decline for the S&P 500 Financials Index and a 1.3% gain for the S&P 500.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Goldman Sachs BDC, Inc. New York, July 23, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Goldman Sachs BDC, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.Senior representatives of Goldman Sachs Group Inc. are in Malaysia to pursue negotiations with the government, as it seeks to recover assets of the state fund 1MDB, the nation’s Finance Minister said.“We hope these discussions will prove to be fruitful,” Tengku Zafrul Tengku Abdul Aziz said in a statement on Monday. “It will enable us to move closer towards achieving the desired results on the recovery of 1MDB assets.”The talks are the latest phase in Goldman Sachs’s efforts to draw a line under the 1MDB affair, which dates back to the $6.5 billion of bond sales it arranged for the troubled Malaysian state fund in 2012 and 2013.Malaysia has accused the bank of misleading investors when it arranged the bond sales, while allegedly knowing that the funds would be misappropriated. Goldman Sachs has denied wrongdoing, saying that former Malaysian officials lied to the bank about how proceeds from the bond sale would be used.Read about the 1MDB scandal that helped oust a prime ministerZafrul and Malaysian Attorney General Idrus Harun have actively engaged with officials from Goldman Sachs and the U.S. Department of Justice to remove key hurdles in the asset recovery negotiations, according to Singapore’s Straits Times, which reported Monday on the talks in Kuala Lumpur.A spokesman for Goldman Sachs declined to comment.The bank is in the final stages of settlement talks with the Justice Department, after tussling with the government on one critical issue -- a potential guilty plea for the first time in Goldman’s history, Bloomberg reported earlier this month.Once the Justice Department renders its decision about a guilty plea, a resolution could follow quickly, including a penalty as high as $2 billion.The effective recovery of 1MDB assets remains a key priority for the Malaysian government, Zafrul said in the statement. The government has “proactively” taken action across multiple countries and organizations, he said.“We are taking every action and step to ensure a recovery value that is fair and just for the Malaysian people,” Zafrul said.(Updates with the 1MDB timeline in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Goldman's businesses can be separated into several parts: consumer, trading, capital markets (fixed income, foreign exchange and commodities), investment banking, and wealth management. Investment banking was very strong (a quarterly revenue record) and I continue to expect a renaissance of M&A activity reflecting the widening schism between have and have not companies which should lead to consolidation on a broad scale. Goldman also has a large wealth management business.