Goldman Slashes Quarterly Profit 85% With 1MDB Legal Charge
- Bank adds $2.01 billion to second-quarter litigation provision
- Goldman reached deal with Malaysia to resolve probes in July
Goldman Sachs Group Inc. headquarters in New York, U.S.
Photographer: Jeenah Moon/Bloomberg
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Goldman Sachs Group Inc. boosted litigation reserves by $2.01 billion after agreeing with Malaysia to resolve probes into the U.S. bank’s role in a scheme to plunder the nation’s 1MDB investment fund.
The additional provision cut the firm’s previously announced second-quarter profit by 85%, the bank said Friday in a filing. Goldman Sachs said last month that the Malaysia settlement would “materially increase” the $945 million it had already set aside in the quarter.