Goldman Sachs cozy relationship with the Malaysian government (the Clinton connection)

The fallout from the widening G/S scandal involves Tim Leissner, chairman of Goldman/s SE Asia operations, who is on leave of absence. He helped set up a state fund ---1Malaysia Development Berhad (1MDB). Goldman was paid sky-high commissions for bond sales. Then $681 million mysteriously turned up in the bank account of Malaysian Prime Minister Najib Razak.

The FBI is investigating w/ a wider probes of money-laundering allegations spanning five countries. Some transactions illustrate the cozy relationship between Goldman and the government. The sum of three bond sales for 1MDB back in 2012 and 2013, some $6.5 billion, reportedly yielded fees, commissions and expenses for Goldman of almost $593 million...9.1% of the money raised. The typical cut for an investment bank is about 5%.

One veteran regulator said there may have been multiple managers feeding off Goldman/s lucrative Malaysian business---in effect, accepting kickbacks. Government officials want more answers on the source of the $681 million.....that it was a gift by Saudi Arabia for financing the ISIS fight was greeted with some incredulity.

Leissner, an 18-year Goldman vet, likely made millions from Goldman deals that later turned controversial. 1MDB came under intense criticism for borrowing as much as $11 billion to finance dodgy acquisitions. And more than half was said to have come from bond deals underwritten by Goldman.

EXCERPT---Congressional Budget Justification FY 2014--- The largely Muslim country of Malaysia has sought a closer relationship with the United States and collaboration in areas of mutual interest. U.S. foreign assistance in Malaysia has focused on law enforcement, non-proliferation, counterterrorism, rule of law, and expanding military-to-military ties.

As a result, the United States has helped Muslim Malaysia become a reliable partner in maintaining regional stability, fighting terrorism and the proliferation of weapons of mass destruction (WMD), and strengthening key regional and global institutions that will contribute to the United States' security. Counterterrorism assistance builds capacity within Malaysian law enforcement and judicial organizations responsible for combating terrorism, and supports activities to improve Malaysias border security.

Counter-proliferation assistance strengthens Malaysias ability to prevent transshipments of controlled munitions, dual-use commodities, and WMD commodities. Military assistance and training builds critical capabilities among Malaysias armed forces, allowing it to take on an expanded international role, including peacekeeping operations and participation in stabilization efforts in Afghanistan.

* Note: The US Security Assistance total includes all military assistance as well as economic assistance in the form of the Narcotics Control, Department of Defense Security Assistance, and Nonproliferation, Anti-Terrorism, Demining and Related funds when applicable.

The aid Malaysia was obligated is higher than average for all countries in East Asia and the Pacific (avg. $4.85M) and lower than average for all countries in the world (avg. $25.9M).

MORE AT http://us-foreign-aid.insidegov.com/l/105/Malaysia

U.S. Secretary of State Hillary Rodham Clinton arrived in Malaysia for an official visit accompanied by a delegation of key senior officials from the U. S. Department of State.

Clinton was greeted by Malaysian Foreign Minister Anifah Aman at the airport Monday night. This is the first official visit to Malaysia by the U.S. Secretary of State since the 1995 visit by Warren Christopher.

According to Malaysian Foreign Affairs Ministry, Hillary Clinton's agenda includes a meeting with Anifah. However, she will hold talks with Deputy Prime Minister Muhyiddin Yassin instead of Prime Minister Najib Razak who is ill with chicken pox.

The Memorandum of Understanding between the governments of the largely Muslim Malaysia and the U.S. on science and technology cooperation will be signed during her visit.

SOURCE: http://en.people.cn/90001/90783/91321/7184686.html

Goldman Sachs has been cozy with a lot of governments around the world.

Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules.

The so-called cross currency swaps have matured, and the chickens have come home to roost.

And what does Goldman Sachs care? They got paid handsomely for this deception.

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