Although Goldman has pledged its cooperation, the firm has also claimed that it is innocent of the Malaysian charges and may well be girding for a fight with the Justice Department to limit its liability. Goldman also will have to deal with the Securities and Exchange Commission, which shares jurisdiction over the bribery law, and the Federal Reserve, Goldman’s chief banking regulator.

Goldman has little choice but to reach a settlement. The key question is how much its entanglement with 1MDB may cost the firm. Disgorging the $600 million fee it earned for arranging the bond deals is the likely starting point for any resolution in the United States.

How much a potential fine could be on top of that is anyone’s guess. One possibility is that it will be a multiple of Goldman’s profit on the transaction. That could push the penalty over a billion dollars, with the possibility of even more if Goldman has to reach an agreement with the Malaysian government.

Do Cryptocurrencies Need a New Regulator?

The precipitous fall in the value of cryptocurrencies in 2016 cries out for greater regulation to protect investors. Studies have shown that the market for cryptocurrencies is subject to widespread manipulation, which puts smaller investors at the mercy of those who are trying to profit from the price swings.

Two bills were introduced in Congress in December to address manipulation in the cryptocurrency markets. Neither offers a concrete step toward regulating trading platforms, nor do they designate oversight to a single agency.

As investors have suffered losses, the questions have increased about whether cryptocurrencies will survive as a viable investment class. Without greater government oversight to curb manipulation, the interest of small investors may well dry up.

The Coming Investigations

Control of the House means Democrats can investigate actions by the Trump administration, and perhaps the president himself. The subpoenas for documents and testimony are likely to fly up Pennsylvania Avenue in much the way they did during the Obama administration after Republicans took control of Congress.