Were executives against 1MDB deals sidelined by Goldman?

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Executives Opposing 1MDB Deals Were Marginalized at Goldman Sachs

An upcoming book reveals that executives at Goldman Sachs who voiced opposition to the firm's dealings with Malaysian state investment fund 1MDB were sidelined. This marginalization occurred despite the significant support for these transactions from powerful figures within the bank, such as former Goldman Sachs head Gary Cohn. The book, Billion Dollar Whale, by two Wall Street Journal reporters, suggests that Cohn's backing provided substantial cover for those involved in the 1MDB business, effectively silencing dissenting opinions.
Support from Key Figures Facilitated 1MDB Deals

The backing of Gary Cohn, the former head of Goldman Sachs, played a crucial role in enabling the firm's engagement with 1MDB. Cohn's support offered significant protection to the individuals managing the 1MDB business, overshadowing any concerns or objections raised by other executives. This high-level endorsement allowed the deals to proceed without significant internal challenge.
Dissenting Voices Were Subdued

Executives within Goldman Sachs who expressed discomfort with the plans to raise billions of dollars for 1MDB found their voices drowned out. The book highlights that the support from influential personalities like Cohn and key figures such as Tim Leissner, the former Goldman banker responsible for 1MDB bond sales, and Andrea Vella, who led Goldman's debt and structured finance business in Asia, created an environment where opposition was not effectively heard or acted upon.
Internal Committees Did Not Detect Fraud

Goldman Sachs' internal committees reportedly failed to identify the fraud that was perpetrated at 1MDB. This failure is attributed to insufficient due diligence conducted by the firm. The bank had been under scrutiny for its role in raising US$6.5 billion for 1MDB and earning approximately US$600 million in commissions during 2012 and 2013.

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Were executives against 1MDB deals sidelined by Goldman?

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