Goldman Sachs says federal bribery case may lead to 'significant fines'

Goldman Sachs says it may face "significant fines" and other sanctions after the U.S. government charged two former executives with using money from a Malaysian client's bond sale for bribes to secure overseas business for the Wall Street firm. The investment bank "is cooperating with the Department of Justice and all other government and regulatory investigations related to 1 Malaysia Development Berhad," a sovereign wealth fund known as 1MDB for which Goldman underwrote about $6.5 billion in debt offerings in 2012 and 2013, according to a Nov. 2 regulatory filing.

Goldman, which drew a Congressional spotlight eight years ago over the sale of securities blamed for the 2008 financial crisis and paid $550 million to settle Securities and Exchange Commission claims that it misled investors in one of the instruments, said it can't predict the outcome of the investigation. Last week, the Justice Department unsealed an indictment in federal court in Brooklyn accusing 51-year-old former Goldman managing director Ng Chong Hwa, also known as Roger Ng, and 36-year-old Malaysian financier Low Taek Jho, known as Jho Low, with conspiring to launder billions of dollars embezzled from 1MDB and to pay bribes in Malaysia and Abu Dhabi. Ng was arrested on Nov. 1 in Malaysia; Low remained at large. Separately, the court unsealed a guilty plea by 48-year-old Tim Leissner, Goldman's former chairman for Southeast Asia, to similar charges. Leissner was ordered to forfeit $43.7 million.

Prosecutors say the two Goldman employees leveraged Low's close relationships with high-ranking government officials in both Malaysia and Abu Dhabi, one of whom was authorized to approve 1MDB's business decisions, to land deals for Goldman from 2009 through 2014. Those included roles on three bond transactions known inside the bank as Project Magnolia, Project Maximus and Project Catalyze, prosecutors said. The work netted about $600 million in fees for Goldman as well as large bonuses for Ng, Leissner and other workers, prosecutors claimed. Once the bond offerings were completed, about $2.3 billion of the proceeds were redirected to Low, Ng, Leissner and others, some of it going to the relative of a Malaysian official who invested it in production of the 2013 film "Wolf of Wall Street." The movie is based on the memoir of Jordan Belfort, the founder of former Long Island, N.Y.-brokerage Stratton-Oakmont, who was released from prison in 2006 after serving three years for using his business to defraud small investors.

While the Goldman deals were reviewed by the firm's compliance department, its culture – particularly in Southeast Asia – "was highly focused on consummating deals, at times prioritizing this goal ahead of the proper operation of its compliance functions," the indictment of Ng and Low claimed. Goldman, which has received a variety of subpoenas and requests for information in the matter, said it has placed another employee identified as a co-conspirator on leave. The firm acknowledged the indictment's criticism of its compliance procedures, but noted that the charging documents indicate Leissner and Ng circumvented them by "repeatedly lying to control personnel and internal committees that reviewed these offerings." The firm estimates the upper end of possible losses from current legal matters including the Malaysian case to be about $1.8 billion more than it has set aside for such issues, according to Jason Goldberg, an analyst with the British lender Barclays Plc.

https://www.washingtonexaminer.com/business/goldman-sachs-says-federal-bribery-case-may-lead-to-significant-fines

Most US troops deployed to border will be unarmed, Pentagon says

The 7,000 active duty military troops deployed to the Southwest border under orders from President Trump aren’t likely to be shooting any migrants. In fact, most won’t even be armed. According to the Pentagon the only troops packing heat will be military police units, whose sole job will be to provide security for the unarmed troops. “The only soldiers that are going to be armed during this mission are the soldiers that are providing force protection,” Col. Rob Manning, a Pentagon spokesman, said Monday.

The statement is the latest attempt by the Pentagon to clarify that the troops are not involved in any law enforcement activities, and instead will be building barriers and stringing barbed wire fencing to “harden” the border in support of the Customs and Border Protection agency. “This will be done using highly experienced and capable combat engineer in battalions with expertise in building temporary vehicle barriers, setting up fences and operating heavy equipment,” Manning said, adding that the troops will also provide aerial surveillance to monitor activity along the border. “Three medium-lift helicopter companies equipped with advanced optics and sensor systems will provide continuous situational awareness to those securing the border during day and night,” he said.

The Pentagon says the military police who are protecting the combat engineers, military aircraft, and other support personnel are highly trained, and being given additional instruction in the event they encounter any migrants. “There is no plan for them to come in direct contact with migrants or protesters,” said Manning. “They are going through a training in their staging bases to make sure that they are prepared for a range of scenarios.” By the end of the day Monday the military expects to have 5,200 active duty troops near the border, with a total of 7,000 by the end of the week. Manning said the military police would be protecting only other military personnel, not civilian authorities. “It's important to note that the soldiers that have weapons are trained, they're disciplined and they're proficient and they’re professional as military policeman,” he said.

https://www.washingtonexaminer.com/policy/defense-national-security/most-us-troops-deployed-to-border-will-be-unarmed-pentagon-says

>>3742668

Also dispels fears some might have, which could cause them to act out otherwise.

>>3742738

Good point, kek, I have a habit of looking more toward the positive direction..

Goldman Sachs names Americas activism defense co-heads

Goldman Sachs Group Inc (GS.N) has appointed investment bankers David Dubner and Pete Michelsen to be co-heads of activism and shareholder advisory for the Americas, the bank said on Monday in a memo. The new roles come at a time when public companies have been seeking help to better defend themselves against so-called activist investors, who often demand corporate changes ranging from sale processes to share buybacks. Dubner is a managing director in the M&A group and joined the bank in 2006. Michelsen is a managing director in M&A as well, having originally joined Goldman Sachs in 2005. Michelsen’s LinkedIn profile shows he left the bank in 2014 to work at CamberView Partners, LLC, a shareholder advisory firm that was acquired earlier this year by PJT Partners Inc (PJT.N). Steven Barg will stay on as global head of activism and shareholder advisory while Nimesh Khiroya will continue to lead the bank’s efforts in Europe, the Middle East and Africa, the memo said.

https://www.reuters.com/article/us-usa-iran-sanctions-trump/trump-says-he-wants-to-go-slower-on-sanctions-for-irans-oil-idUSKCN1NA2CO?il=0

Serious Question here, why is Goldman Thievery not getting any traction here…This is significant, NO… >>3742602 if not why not?