JP Morgan, Deutsche Bank Sued By 1MDB As Malaysia Looks To Recover $23 Billion
[apology if already posted; $23B is a lot of PAIN]
Malaysia's quest to recover the billions of dollars looted from 1MDB, the sovereign wealth fund that was coopted as a political slush fund then ransacked by an enterprising young banker-turned-mogul-turned-fugitive named Jho Low, appears to be ensnaring more American banks.
Months after Goldman Sachs finally admitted to its role in enabling Low to steal government assets by raising money in a series of bond offerings for 1MDB, ignoring the red flags raised by its own compliance department about the risk of fraud and corruption, local Malaysian newspaper the Edge - which led much of the original reporting on the 1MDB fraud - has reported that the Malaysian government hasfiled lawsuits against JP Morgan and Deutsche Bank.
The Malaysian Finance Ministery, according to a Bloomberg report, has confirmed that 1MDB has filed six lawsuits alleging a range of wrongdoing including fraud and conspiracy to defraud the fund against nine unnamed entities, including two foreign financial institutions, and 25 individuals. Bloomberg's sources have confirmed that the two foreign financial firms were JP Morgan and Deutsche Bank. The Edge also confirmed that both banks had been targeted with lawsuits. However, JPM declined to comment, while Deutsche Bank said it hadn't been served any papers on 1MDB.
According to Bloomberg, Malaysia and the fund are looking to recover some $23 billion in assets.
moar at sauce:
https://www.zerohedge.com/geopolitical/jp-morgan-deutsche-bank-sued-1mdb-malaysia-looks-recover-23-billion