Ex Goldman Sachs CEO Blankfein implicated in 1MDB Scandal

The New York Times reported that in 2012, Blankfien had a one-to-one meeting with Malaysian financier Low Taek Jho.

This comes after the United States prosecutors are looking at the meeting as part of a criminal investigation of the bank.

Goldman Sachs Group does not recall and denied the meeting ever occurred. In a statement, the bank said, ” In 2012, Mr. Blankfien had an introductory high-level meeting with the CEO of Aabar, an existing client of the firm.”

At Aabar’s request, Mr. Low accompanied the CEO to the meeting.

The pandemonium surrounding Goldman Sachs’s role in raising funds for the Malaysian state investment fund, IMalaysia Development Berhad (IMDB) has harrowed on the bank’s shares after Malaysia’s Finance Minister said they will seek full refund on the fees paid for the deals.

Goldman Sachs made US$593 million (S$813 million) working on three bond sales that raised US$6.5 billion for 1MDB in 2012 and 2013.

Sovereign wealth fund International Petroleum Investment Company filed a lawsuit in New York against Goldman Sachs alleging a conspiracy between the bank and the executives to defraud the investors.

A spokesperson of Goldman Sachs said, “We are assessing the details of the allegations and fully expect to contest the claim vigorously.”