Goldman Sachs reports drop in profits as it prepares for hefty 1MDB fine. OYO might cut more jobs.
All Hands On Deck: Goldman Sachs reported a drop in fourth-quarter profits following a mixed performance in its operating businesses. A big portion of Goldman's increased expenses came from the $1.1bn it set aside in anticipation of settlements on the 1MDB scandal.
The bank’s operating expenses rose 42% in Q4 and 6% for the full year.
As for the 1MDB scandal, which has already dramatically remade Malaysian politics and led to the indictments of two ex-Goldman bankers, Chief Executive David Solomon has said that settlement talks with US and Malaysian authorities are "progressing and remain active...We are working hard to bring closure to this matter as quickly as possible." CNA
ICYMI: The 1MDB scandal is a scandal surrounding the activities of a Malaysian government investment fund (1MDB), from which former Malaysian PM Najib Razak was accused of channelling over $700mn to his personal accounts. Goldman Sachs was the investment bank that advised 1MDB on bond sales and acquisitions, and has been accused of ignoring red flags while billions of dollars were looted from its client. (Click here to read more on the 1MDB scandal.)
To Fire or Not to Fire: Meanwhile at OYO, senior company executives say job cuts are likely to intensify. Company spokespersons, on the other hand, deny any further retrenchments in the offing. Click here to read more.
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