Two ex-Goldman bankers banned from industry after 1MDB scandal

Pedro Gonçalves
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Two ex-Goldman bankers banned from industry after 1MDB scandal

Former Goldman Sachs bankers Tim Leissner and Roger Ng have been banned from the industry by the US Federal Reserve for their role in helping divert billions of dollars from the Malaysian state fund 1MDB.

Leissner and Ng coordinated bond offerings that allowed funds to be stolen from 1MDB, the regulator said on Tuesday. Some of the diverted money was used to bribe government officials in 
Malaysia and Abu Dhabi, and criminals also used proceeds to pay for lavish lifestyles, according to the Fed.

"Given the Department of Justice's charges, this development is hardly surprising," said Goldman Sachs spokesman Michael DuVally.

Leissner, who agreed to the Fed's permanent ban, was fined $1.42m, according to the statement. He has already pleaded guilty to charges brought by the US Justice Department, including conspiring to launder money.

Given the Department of Justice’s charges, this development is hardly surprising"

Abu Dhabi state investor Mubadala has suspended any new business dealings with Goldman Sachs since its subsidiary filed a lawsuit in November against the US bank and others to recover losses suffered through its dealings with 1MDB.

"We have suspended any activities with Goldman Sachs pending outcome of the litigation," Brian Lott, spokesman of Mubadala Investment Co, said in response to questions from Reuters.

"The only exceptions are engagements signed prior to the litigation, which will continue as per contractual terms," he said.

A spokesman for Goldman Sachs declined to comment.