Red Flags Over Goldman Sachs
Just to prove that I am an even-handed insulter, here is a rant about my former employer, Goldman Sachs. The scandal at 1MDB, the Malaysian sovereign wealth fund from which it appears that billions were stolen by politicians all the way up to the Prime Minister, continues to unfold.
The main players in the 1MDB scandal. Irony alert: apparently money siphoned off from 1MDB was used to inter alia finance Martin Scorcese’s movie “The Wolf of Wall Street”, in which Leonardo di Caprio plays a major boiler room operator/ hustler who makes a fortune by defrauding his clients. When the WSJ contacted the people involved in 1MDB, all of them strenuously denied wrongdoing, with the exception of the only currently imprisoned one, who “declined to comment”. The money is gone, but it seems nobody took it. It is so to speak a Malaysian luxury miracle, proudly aided and abetted by those doing God’s work on the other side of the Pacific pond – click to enlarge.
At last count, law enforcement officials in seven countries are investigating the scandal, with the unsurprising exception of the officials whose boss did the stealing. As the slogan of the Malaysian Tourism Board puts it: “Malaysia, truly Asia.”
Here’s a prediction: Goldman Sachs is going to bleed for this one. There were more red flags fluttering over these deals than in a May Day parade.