Goldman Sachs: The Rest of the Story

0 | By Shah Gilani

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.

Here’s the conclusion to Tuesday’s story, and I’ll tell you about a once-in-a-lifetime opportunity you won’t want to miss out on

Goldman Sachs: Just Some Bad Actors or a Criminal Enterprise?

2 | By Shah Gilani

The Goldman Sachs Group Inc. (NYSE:GS), the most prolific moneymaking machine in the history of Wall Street, was charged Monday by Malaysia’s Attorney General with criminal wrongdoing in the massive 1MDB scam.

While it’s not the first time Goldman’s boiling greed has got it in hot water, the size and scope of the bribery, fraud, theft, and money laundering in the criminal affair known as 1Malaysia Development Bhd. could permanently scald Goldman’s reputation and cause it to lose banking licenses worldwide.

This is a rather long-winded story, so I’m going to split it into two parts. You’ll get the first half today, and I’ll conclude the story on Friday.

Here’s what really happened with the whole Goldman-1MDB debacle, and if you stay tuned till the end, you’ll get a special treat