Shares in Goldman Sachs dropped to the lowest point in seven years yesterday as the investment bank faced the fall out of the Malaysian 1MDB corruption scandal.
Goldman Sachs saw shares fall 7.5 per cent after Bloomberg reported that the country’s finance minister said it would demand a full refund for the fees it paid for 1MDB deals.
The bank is facing allegations of a multibillion dollar fraud at Malaysia state investment fund 1MDB.
At the beginning of the month two former Goldman Sachs bankers and Malaysian financier Jho Low were charged in the US for the alleged embezzlement of billions of dollars from the fund.
Former Goldman partner Tim Leissner pleaded guilty to conspiracy to launder money and breaking the US Foreign Corrupt Practices Act. He agreed to hand over nearly $44m (£33m).
Roger Ng, another former banker, is facing extradition to the US after being arrested in Malaysia
Last week the new chief executive of the investment bank David Solomon said he felt "horrible" about the accusations against the former employees.
“I feel horrible about the fact that people who worked at Goldman Sachs, and it doesn't matter whether it's a partner or it's an entry-level employee, would go around our policies and break the law,” Solomon said, speaking to Bloomberg TV in Singapore.