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Goldman Sachs In Talks With U.S. To Pay $2 Bln Fine To Settle 1MDB Probe: WSJ

Goldman Sachs Group Inc. (GS) is in talks with the U.S. Department of Justice to pay about $2 billion fine to settle a criminal investigation into its role in a Malaysian corruption scandal, the Wall Street Journal reported, citing people familiar with the matter.

An Asian subsidiary of Goldman could plead guilty to the bribery charges and Goldman will have to create an independent monitor to oversee compliance efforts. It admitted that it ignored warning signs as the funds were looted, the Journal said.

Malaysia's 1MDB corruption scandal allegedly saw top officials loot billions from a state fund and go on a worldwide spending spree -- buying up super-yachts, and financing a Hollywood blockbuster.

The U.S. Justice Department said more than $4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.

Goldman helped raise $6.5 billion for the fund, and two ex-bankers are accused of misappropriating billions, bribing officials and giving false statements in relation to bond issues they arranged for the fund.

The scandal brought down Malaysia's former leader Najib Razak. He is facing criminal charges in Malaysia but has pleaded not guilty.

Malaysia's government also has filed criminal charges against Goldman Sachs.

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