SINGAPORE (Dec 3): For nearly five years now, the unfolding 1 Malaysian Development Bhd or 1MDB scandal has had little or no impact on Wall Street even though US investment banking giant Goldman Sachs was at the core of the shenanigans and a key enabler.
New York’s financial circles hardly noticed when 1MDB helped bring down the government of former prime minister Najib Razak in May. Indeed, even the US Department of Justice (DOJ) indictments of Penang-born wheeler-dealer Low Taek Jho or Jho Low, Goldman Sachs ex-partner Tim Leissner and his deputy Roger Ng last month barely made a ripple in the financial markets.
Over the past two weeks, 1MDB was washing up on Wall Street like a tsunami. By the time the selling was done, Goldman Sachs stock was down a whopping 19%. The shares are now down over 31% from their late January peak, making Goldman by far the worst-performing large US financial stock this year.