Goldman execs take pay cut over 1MDB
Happy Friday!
The second shoe has finally dropped for Goldman regarding its involvement in Malaysia's 1MDB fund. On Thursday, the bank reached an agreement with US authorities to pay out nearly $3 billion. This comes a few months after Goldman agreed to a $3.9 billion settlement with Malaysia.
One interesting tidbit from the news. Goldman Sachs' CEO, COO, and CFO, along with Goldman Sachs International's CEO, will have their overall compensation reduced by $31 million for 2020. That's in addition to $76 million the bank is clawing back from former employees implicated in the incident.
According to the Justice Department, Goldman earned $600 million in fees from its work with 1MDB.
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However, one bright spot for EY and Deloitte has been their work with state governments. Samantha Stokes has a nice breakdown of the work by the two tax and audit firms to help states in their response to the pandemic.
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Oh, and all of it was won without a bidding process.
Click here to read the entire story.
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Odd lots:
How Wirecard misled investors over KPMG's special audit (FT)
Robinhood's Addictive App Made Trading a Pandemic Pastime (Bloomberg)
Paul Singer's $41 Billion Hedge Fund Moving Headquarters to Florida (Bloomberg)
Goldman Sachs sends employees home after two Covid-19 cases on trading floors (FinancialNews)