Goldman Sachs Stock Has Worst Day in 7 Years as Multi-Billion-Dollar Fraud Fallout Weighs

via stocknews:

Goldman Sachs Group,Inc (NYSE:GS)

Goldman Sachs fell 7 percent after news of its involvement with a shady Malaysian investment fund. It was the company’s biggest drop since losing eight percent in November 2011.

CNBC provides details:

Goldman has attracted scrutiny for its role in helping set up the Malaysian state investment fund known as 1MDB. The bank arranged three bond deals in 2012 and 2013 to fund 1MDB, raising $6.5 billion to supposedly attract foreign investment. Instead, U.S. authorities accused a Malaysian financier of stealing billions of dollars from the fund and using some of that money to pay hundreds of million of dollars in bribes.

Malaysia’s finance minister is demanding a $600 million refund in fines Goldman was paid for the deals. Goldman is also facing significant fines from the US Department of Justice for the scandal.