The US financial regulator Federal Reserve has banned two Goldman Sachs bankers from working in the banking sector. Tim Leissner and Ng Chong Hwa were involved in a large-scale fraud involving the Malaysian state fund 1MDB.
According to the Fed, bankers’ actions eroded public confidence in the image of Goldman Sachs. Leissner previously received a fine of $ 1.42 million from the Fed and confessed to being guilty of money laundering last August. Ng was indicted in October and is currently awaiting his extradition to the United States.
Goldman Sachs may still have to deal with billions in fines. The American investment bank concluded large deals for 1MDB, which is the pivot in a major scandal in Malaysia. The former Prime Minister of the country, Najib Razak, would have had large sums of money channeled away through the fund.