While US Financial stocks are generally a lot lower post-Midterms (Maxine Waters?), there is one TBTF bank that is drastically undeperforming...
Goldman Sachs is down over 10% in the last two days as 1MDB deal drama comes back to bite them.
As Bloomberg reports, Malaysian Finance Minister Lim Guan Eng said the nation is seeking a full refund of all the fees it paid to Goldman Sachs for arranging billions of dollars of deals for troubled state fund 1MDB.
Goldman has “admitted culpability” after former banker Tim Leissner entered a guilty plea for his role in the scandal, Lim said in a Monday interview with radio station BFM. Lim is banking on the firm’s “indirect” admission of wrongdoing and U.S. law against kleptocracy, to help Malaysia recoup fees that include nearly $600 million that it paid Goldman for three bond deals. Goldman Sachs hasn’t publicly admitted any wrongdoing and has said it’s cooperating with authorities.
“I would be happy if we can get around 30 percent net after all the expenses incurred” from the entire 1MDB scandal, he said, referring to the overall amount of funds thought to be lost through the troubled state fund.
Prime Minister Mahathir Mohamad has set a goal of bringing back $4.5 billion.
For now shareholders are concerned... Sending the stock to its lowest since mid-November 2016...