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Goldman in talks to end inquiry over Malaysian fund

Goldman Sachs is negotiating with federal prosecutors to settle an inquiry into its role in a scheme to loot billions from a sovereign wealth fund in Malaysia, the NYT’s Emily Flitter and Matthew Goldstein write, citing unnamed sources.

The Wall Street bank would pay a fine of as much as $2 billion as part of the settlement, and it would have a subsidiary plead guilty in an investigation that is focused on violations of money laundering and foreign bribery laws.

The case involves a plan to siphon off more than $2.7 billion from a Malaysian development fund known as 1MDB. A former Goldman partner has pleaded guilty in the case, and another bank executive faces criminal charges.

Goldman Sachs could also reach a deferred prosecution agreement, in which all charges are dropped if the bank complies with prosecutors’ provisions.