| I do think that the two partners Leissner and Ng are probably complicit to some degree. They probably do deserve to get prosecuted by the justice department. But GS are just the underwriters of the bond, they aren't guaranteeing the bonds. They didn't steal the money either. The Malaysian government is claiming that because the fee was large (around 10%) that it's clear evidence that the organization as a whole was complicit and guilty. I don't think that's a very strong argument. But the Malaysians don't seem as interested in justice (certainly the two partners should be jailed) as they are in finding someway to get their money back. So instead of looking at the people in their own country who stole the money, an investigation that might implicate other powerful people besides Jho Low, they turn their eyes to easiest target they have, GS, a foreign company. It might even be reasonable to ask for the underwriting fee back (though I'm on the fence about that), but 7.5 Billion USD? Do you think that number of motivated by justice? Do you think it's motivated by "teaching them a lesson?" Or do you think that the number is so high because Malaysia wants the money and they see an easy way to get it? 7.5 Billion is almost 10% of the entire company's shareholder equity, truly a staggering sum for GS to pay. Total revenue for GS in 2017 was around 30 Billion, net profits were just 4 billion. How is almost 2 years of net profits in the least bit fair as a punishment? And if it is fair, why stop at that? Why not 15 billion? Or 30 billion? Why not just take all their equity and turn it into a state corporation. Surely Goldman Sachs, the blood sucking squid, deserves a comeuppance for all the proletariat ire they have received over the years. Maybe that last paragraph is a little much, but the point still stands. I think people irrationally hate banks and hate wall st, and their view of justice for the banks is colored by that discrimination. |
> 7.5 Billion is almost 10% of the entire company's shareholder equity, truly a staggering sum for GS to pay.
Apparently the 1MDB losses have cost Malaysian taxpayers around USD $12 billion. Given that GS was the underwriter and allegedly the key enabler of the scandal, punishing GS by making them pay at least the majority of those taxpayer losses seems unjustified or unfair to you? What amount do you believe is fair?
For example, if a "fence" helps a thief sell off some "gear" and the thief is caught. How much should the "fence" be liable for? How much should the victims get back?