(This is a developing story. Check back for updates.)
Goldman Sachs CEO David Solomon apologized to the Malaysian people for the role of one of the firm's bankers in the scandal. He made the remarks on the bank's earnings conference call Wednesday.
Since taking over from Lloyd Blankfein on Oct. 1, Solomon has been forced to address the burgeoning 1MDB scandal time and again: In November, he left company-wide voice messages for employees, saying he was "personally outraged" in the behavior of the accused Goldman bankers. Then, in December he defended the bank in a memo to employees, saying that there was "detailed due diligence" into the bond offerings at the heart of 1MDB.
Goldman Sachs bankers helped Malaysia set up the $6.5 billion fund, ostensibly to make infrastructure investments and boost development in the country. But instead of helping the nation, at least $4.5 billion was plundered from the fund by a disgraced Malaysian financier and others.
Now, Goldman faces investigations around the world, including a Justice Department probe in the U.S. and criminal charges in Malaysia, over its role in setting up the fund. The firm underwrote bond transactions in 2012 and 2013 to launch the fund, and it collected higher-than-typical fees of $600 million for the deals.
Uncertainty from the investigations has weighed on Goldman's stock: Its shares dropped 34 percent last year, the worst performance among the six biggest banks. Goldman may need to spend as much as $5 billion to resolve the mess over 18 months, analyst Mike Mayo said last month in a research note.
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