Here’s what we know about The Goldman Sachs Group Inc. (NYSE:GS) and their involvement in the outrageous 1MDB fraud scheme:
On the heels of Goldman Sachs’s horrific 2008, the then-investment bank was forced, on a Sunday night in September, to become a bank holding company to get saved by the Federal Reserve on Monday, staving off insolvency and its likely bankruptcy. It gathered itself and set its sights on greener pastures.
Recognizing that Asian institutions held more than $12 trillion in assets and Goldman had relationships with only about 15% of managers controlling those assets, CEO Lloyd Blankfein pointed his finger towards Southeast Asia.
But you knew that. I told you all about it on Tuesday.
In 2010, Blankfein’s rallying cry was “we need to ‘be Goldman Sachs in more places.'”
The bank proceeded to double its staff in the targeted area. That included Andrea Vella, the former aeronautical engineer and JPMorgan Chase & Co. (NYSE:JPM) derivatives designer, and Tim Leissner, subsequently a 10-year partner at Goldman, as rainmakers.
And make it rain, they did.
In 2012, Vella, Leissner, and Leissner’s deputy, Roger Ng, brought a debt deal to the Goldman bond deal committee in Hong Kong for consideration and due diligence.
The charge was to raise $1.75 billion for the newly formed Malaysian government investment company, 1Malaysia Investment Bhd., for the fund to purchase energy assets from Tanjong Energy Holdings, owned by Malaysian billionaire Tatparanandam Ananda Krishnan.
It didn’t go so well. The committee cited “potential media and political scrutiny” and noted the fund’s “scant record.” But, Vella, Leissner, Ng, and the credit traders they enlisted to help them prevailed.