GOLDMAN Sachs is in talks with US prosecutors to pay a lower fine and avoid a guilty plea for its role in the 1Malaysia Development Bhd fraud, reports The New York Times.

The newspaper, citing sources, said the bank’s lawyers have asked Deputy Attorney-General Jeffrey Rosen to review federal prosecutors’ demands that it pay a fine of more than US$2 billion (RM8.5 billion) and plead guilty to a felony charge over its scheme to loot billions from the state investor.

The request, made several weeks ago, is not unusual for a high-profile corporate probe, and often comes when settlement talks are nearing their end.

Goldman Sachs has never admitted guilt in a federal investigation.

The bank helped raise US$6.5 billion for the scandal-plagued 1MDB through the sale of guaranteed notes and bonds.

The US Justice Department has said more than US$4.5 billion was stolen from the fund by its high-level officials and their associates between 2009 and 2015.

In January, it was reported that the bank set aside US$1.1 billion in legal costs, with most of the sum expected to go towards 1MDB settlements. – June 12, 2020.