Goldman Sachs (NYSE:GS) fell in midday trade on Friday after reports that 17 current and former bankers, including its CEO of its international division, were criminally charged by Malaysia for their involvement in the 1Malaysia Development Berhad scandal.
Malaysia’s attorney government claims that the accused were directors at three subsidiaries when the bank arranged for bond offerings to the wealth fund and misled investors, diverting $2.7 billion.
Goldman Sachs says the charges are “misdirected” and will be defended.
Some $4.5 billion was stolen from Malaysia's sovereign wealth fund and diverted into properties and movie funds by senior officials, the U.S. Justice Department alleges.
In other news, the bank is dipping its toes in subprime lending as it decides who gets the new credit card for Apple Pay), CNBC reported.
Some of those customers have less-than-ideal credit scores, the report said. The credit cards were rolled out this week to select Apple (NASDAQ:AAPL) customers before a bigger launch later in the month.
Goldman Sachs (NYSE:GS) shars declined 1.3%.
