Goldman Sachs Group Inc <a href="http://www.wionews.com/world/malaysia-ex-pm-hit-with-25-new-charges-linked-to-1mdb-scandal-166839">"cheated" Malaysia over its dealings</a> with state fund 1MDB which is the subject of corruption and money-laundering investigations, Prime Minister Mahathir Mohamad told a TV channel on Tuesday.

The United States, Malaysia and at least four other countries are investigating how billions of dollars went missing from 1MDB, founded by former Malaysian premier Najib Razak.

US prosecutors filed criminal charges against two former Goldman Sachs bankers earlier this month. One of them, Tim Leissner, pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act.

Goldman Sachs earned about $600 million in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised $6.5 billion.

Mahathir said "there is evidence that Goldman Sachs has done things that are wrong".

"Obviously we have been cheated through the compliance by Goldman Sachs people," he said in the interview.

The bank's compliance controls "don't work very well", he added.

A Goldman Sachs spokesman in Hong Kong declined to comment on the allegation. The bank denied any wrongdoing on Monday.

Goldman Sachs shares fell to their lowest in nearly two years on Monday after Malaysian Finance Minister Lim Guan Eng said Malaysia would seek a "full refund" from the bank of the fees from 1MDB deals.

The US Department of Justice has said about $4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014.

Former premier Najib has been charged with corruption in Malaysia as part of the investigation into 1MDB. He has pleaded not guilty and denied any wrongdoing.

Malaysian financier Low Taek Jho was also charged by US prosecutors. He remains at large.

Goldman Sachs Group Inc "cheated" Malaysia over its dealings with state fund 1MDB which is the subject of corruption and money-laundering investigations, Prime Minister Mahathir Mohamad told a TV channel on Tuesday.

Goldman Sachs Group Inc "cheated" Malaysia over its dealings with state fund 1MDB which is the subject of corruption and money-laundering investigations, Prime Minister Mahathir Mohamad told a TV channel on Tuesday. The United States, Malaysia and at least four other countries are investigating how billions of dollars went missing from 1MDB, founded by former Malaysian premier Najib Razak. US prosecutors filed criminal charges against two former Goldman Sachs bankers earlier this month. One of them, Tim Leissner, pleaded guilty to conspiracy to launder money and conspiracy to violate the Foreign Corrupt Practices Act. Goldman Sachs earned about $600 million in fees for its work with 1MDB, which included three bond offerings in 2012 and 2013 that raised $6.5 billion. Mahathir said "there is evidence that Goldman Sachs has done things that are wrong". "Obviously we have been cheated through the compliance by Goldman Sachs people," he said in the interview. The bank's compliance controls "don't work very well", he added. A Goldman Sachs spokesman in Hong Kong declined to comment on the allegation. The bank denied any wrongdoing on Monday. Goldman Sachs shares fell to their lowest in nearly two years on Monday after Malaysian Finance Minister Lim Guan Eng said Malaysia would seek a "full refund" from the bank of the fees from 1MDB deals. The US Department of Justice has said about $4.5 billion was misappropriated from 1MDB by high-level officials of the fund and their associates between 2009 and 2014. Former premier Najib has been charged with corruption in Malaysia as part of the investigation into 1MDB. He has pleaded not guilty and denied any wrongdoing. Malaysian financier Low Taek Jho was also charged by US prosecutors. He remains at large.

Goldman Sachs has done wrong things in 1MDB case: PM Mahathir Mohamad

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output.

European equities also closed lower with Frankfurt and Paris weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU-deadline for Rome to revise its 2019 budget.

Trading got off to a bad start in New York, with Apple shares declining after a key parts supplier said a client had cut orders significantly, stoking fears of waning demand for iPhones.

"The ecosystem of the supply chain around Apple is starting to feel the slide of demand," Matt Miskin of John Hancock told AFP, noting that he still expected robust holiday season performance in the tech sector.

"With a weaker global growth, tech companies are starting to get repriced lower."

But a general rout ensued for stocks. Investment bank Goldman Sachs also fell 7.5 per cent, weighing on the financial sector, while embattled engineering giant General Electric had its lowest close in nearly a decade.

The Dow and S&amp;P 500 both lost two per cent or more while the tech-heavy Nasdaq dropped 2.8 per cent. Shares in Apple closed down more than five per cent.

Treasury bond markets closed for a public holiday.

By mid-afternoon, the broad-based slide prompted President Donald Trump to point the finger, while citing no evidence, at congressional Democrats, who won control of the House of Representatives in last week's elections.

"The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!" he wrote on Twitter. Markets had rallied the day after the vote.

Meanwhile, Bloomberg reported Monday afternoon that Trump was considering unveiling fresh auto tariffs, erasing gains by General Motors and helping push markets even lower.

Earlier in the Eurozone, the Frankfurt and Paris stock markets had dropped as well, weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU deadline for Rome to revise its 2019 budget.

The dollar continued to strengthen against its major rivals, meanwhile, hitting its highest levels since the first half of 2017.

The European Union's chief Brexit negotiator warned ministers from the other 27 member states on Monday that no deal has been sealed on Britain's departure from the bloc.

Elsewhere, Saudi Arabia's energy minister called for a global output cut of a million barrels per day to re-balance the market, as Riyadh unveiled plans to trim its own production by 500,000 barrels per day from December.

Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to reduce supply in 2019.

Benchmark crude prices still finished lower in New York and London. Oil prices have shed about one-fifth of their value over the past month on oversupplies and signs of a softer-than-expected impact from US sanctions on Iranian crude exports.

Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent dropped below $70 a barrel for the first time since April.

Tobacco stocks also suffered following media reports that US health regulators expect to announce plans as soon as this week to seek a ban on menthol cigarettes and to limit sales of e-cigarettes.

British American Tobacco shedding 10.62 per cent to £29.96 and Imperial Tobacco losing almost 2.2 per cent on reports of a planned US ban on menthol cigarettes, which researchers have said pose a greater health risk than traditional ones.

American tobacco producers likewise headed south on the news.

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output.

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output. European equities also closed lower with Frankfurt and Paris weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU-deadline for Rome to revise its 2019 budget. Trading got off to a bad start in New York, with Apple shares declining after a key parts supplier said a client had cut orders significantly, stoking fears of waning demand for iPhones. "The ecosystem of the supply chain around Apple is starting to feel the slide of demand," Matt Miskin of John Hancock told AFP, noting that he still expected robust holiday season performance in the tech sector. "With a weaker global growth, tech companies are starting to get repriced lower." But a general rout ensued for stocks. Investment bank Goldman Sachs also fell 7.5 per cent, weighing on the financial sector, while embattled engineering giant General Electric had its lowest close in nearly a decade. The Dow and S&P 500 both lost two per cent or more while the tech-heavy Nasdaq dropped 2.8 per cent. Shares in Apple closed down more than five per cent. Treasury bond markets closed for a public holiday. By mid-afternoon, the broad-based slide prompted President Donald Trump to point the finger, while citing no evidence, at congressional Democrats, who won control of the House of Representatives in last week's elections. "The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!" he wrote on Twitter. Markets had rallied the day after the vote. Meanwhile, Bloomberg reported Monday afternoon that Trump was considering unveiling fresh auto tariffs, erasing gains by General Motors and helping push markets even lower. Earlier in the Eurozone, the Frankfurt and Paris stock markets had dropped as well, weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU deadline for Rome to revise its 2019 budget. The dollar continued to strengthen against its major rivals, meanwhile, hitting its highest levels since the first half of 2017. The European Union's chief Brexit negotiator warned ministers from the other 27 member states on Monday that no deal has been sealed on Britain's departure from the bloc. Elsewhere, Saudi Arabia's energy minister called for a global output cut of a million barrels per day to re-balance the market, as Riyadh unveiled plans to trim its own production by 500,000 barrels per day from December. Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to reduce supply in 2019. Benchmark crude prices still finished lower in New York and London. Oil prices have shed about one-fifth of their value over the past month on oversupplies and signs of a softer-than-expected impact from US sanctions on Iranian crude exports. Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent dropped below $70 a barrel for the first time since April. Tobacco stocks also suffered following media reports that US health regulators expect to announce plans as soon as this week to seek a ban on menthol cigarettes and to limit sales of e-cigarettes. British American Tobacco shedding 10.62 per cent to £29.96 and Imperial Tobacco losing almost 2.2 per cent on reports of a planned US ban on menthol cigarettes, which researchers have said pose a greater health risk than traditional ones. American tobacco producers likewise headed south on the news.

Wall Street stocks: Dow & Nasdaq tumble; oil prices continue to slide

Goldman Sachs "cheated" Malaysia, leader Mahathir Mohamad said, after two former bankers from the Wall Street titan were charged over a scandal that allegedly saw billions looted from state coffers.&nbsp;

The US Justice Department unveiled criminal charges this month against ex-Goldman bankers Tim Leissner and Ng Chong Hwa, accusing them of working with a Malaysian financier to launder huge sums allegedly stolen from Malaysian sovereign wealth fund 1MDB.

They are accused of involvement in a sophisticated fraud linked to former leader Najib Razak, allegations that played a big factor in the shock defeat of his long-ruling government at polls in May.&nbsp;

In an interview with broadcaster CNBC, Prime Minister Mahathir said that "obviously we've been cheated", when asked about Goldman's dealings in Malaysia.&nbsp;

"There is evidence that Goldman Sachs has done things which are wrong," said the 93-year-old, who is in his second stint as premier after coming out of retirement to take on Najib, his former protege.

Asked about Goldman's compliance controls -- which are supposed to monitor and prevent risky behaviour at the bank -- Mahathir responded: "It does not work very well."

Goldman Sachs did not immediately respond to requests for comment.

Leissner and Ng have been charged with money-laundering and conspiring to bribe officials in Malaysia and Abu Dhabi to hire Goldman for lucrative consulting contracts.&nbsp;

Goldman underwrote US $6.5 billion of bonds issued by 1MDB but US authorities allege that more than US $2.7 billion was siphoned off.&nbsp;

Goldman earned US $600 million in fees for the bond issue.

Leissner pleaded guilty and has agreed to pay US $43.7 million in restitution of ill-gotten gains. Ng has been arrested in Malaysia.

Malaysian financier Low Taek Jho was also charged by the DoJ. Low, allegedly a central figure in looting 1MDB, remains at large.

Goldman Sachs has not been charged over the scandal but its shares fell heavily this week after Malaysia's finance minister said he wanted a full refund of fees paid to the bank.

In a further blow to the bank's image, it has emerged that former chief Lloyd Blankfein met with Low at a private reception in a New York hotel in 2009.

Goldman Sachs "cheated" Malaysia, leader Mahathir Mohamad said, after two former bankers from the Wall Street titan were charged over a scandal that allegedly saw billions looted from state coffers.

Goldman Sachs "cheated" Malaysia, leader Mahathir Mohamad said, after two former bankers from the Wall Street titan were charged over a scandal that allegedly saw billions looted from state coffers. The US Justice Department unveiled criminal charges this month against ex-Goldman bankers Tim Leissner and Ng Chong Hwa, accusing them of working with a Malaysian financier to launder huge sums allegedly stolen from Malaysian sovereign wealth fund 1MDB. They are accused of involvement in a sophisticated fraud linked to former leader Najib Razak, allegations that played a big factor in the shock defeat of his long-ruling government at polls in May. In an interview with broadcaster CNBC, Prime Minister Mahathir said that "obviously we've been cheated", when asked about Goldman's dealings in Malaysia. "There is evidence that Goldman Sachs has done things which are wrong," said the 93-year-old, who is in his second stint as premier after coming out of retirement to take on Najib, his former protege. Asked about Goldman's compliance controls -- which are supposed to monitor and prevent risky behaviour at the bank -- Mahathir responded: "It does not work very well." Goldman Sachs did not immediately respond to requests for comment. Leissner and Ng have been charged with money-laundering and conspiring to bribe officials in Malaysia and Abu Dhabi to hire Goldman for lucrative consulting contracts. Goldman underwrote US $6.5 billion of bonds issued by 1MDB but US authorities allege that more than US $2.7 billion was siphoned off. Goldman earned US $600 million in fees for the bond issue. Leissner pleaded guilty and has agreed to pay US $43.7 million in restitution of ill-gotten gains. Ng has been arrested in Malaysia. Malaysian financier Low Taek Jho was also charged by the DoJ. Low, allegedly a central figure in looting 1MDB, remains at large. Goldman Sachs has not been charged over the scandal but its shares fell heavily this week after Malaysia's finance minister said he wanted a full refund of fees paid to the bank. In a further blow to the bank's image, it has emerged that former chief Lloyd Blankfein met with Low at a private reception in a New York hotel in 2009.

Wall Street titan Goldman Sachs 'cheated' Malaysia: PM

US officials unveiled criminal indictments Thursday against an intermediary to scandal-plagued Malaysian sovereign wealth fund 1MDB and a former Goldman Sachs banker involved in an elaborate alleged bribery scheme.

They are the first US criminal charges in the case which spawned investigations around the world.

The US Department of Justice arrested former Goldman Sachs banker Ng Chong Hwa in Malaysia on Thursday, while the 1MDB intermediary, Low Taek Jho, remains at large, officials said in a press release.

Another ex-Goldman official, Tim Leissner, pleaded guilty and agreed to pay $43.7 million in restitution of ill-gotten gains.

The 1MDB scandal has roiled politics in Malaysia, leading to criminal charges against former Prime Minister Najib Razak.

The men were charged with conspiring to launder billions of dollars from 1 Malaysia Development Berhad, a sovereign wealth fund set up for development of the country, and conspiring to bribe officials in Malaysia and Abu Dhabi, violating the Foreign Corrupt Practices Act.

Ng was also charged with conspiring to violate the internal controls at Goldman Sachs, which underwrote about $6.5 billion in bonds issued by 1MDB, the US government said.

The funds were intended "for the benefit of the Malaysian people" but more than $2.7 billion went to kickbacks and bribes, according to the charges.

Goldman Sachs, which garnered $600 million in fees and revenues from three 1MDB bond transactions detailed in the indictments, has said previously it is cooperating with the probe. A Goldman Sachs spokesman did not have immediate comment Thursday.

Goldman Sachs wasn't named in the DOJ criminal documents, but was referred to as "financial institution #1." The DOJ filings say Ng and Leissner repeatedly circumvented Goldman's oversight tools for countering fraud, adding that the "business culture" at the firm, "particularly in Southeast Asia, was highly focused on consummating deals, at times prioritizing this goal ahead of the proper operation of its compliance functions," according to the Low-Ng indictment.

Under one scheme involving a 2012 "Project Magnolia" bond offering by 1MDB, Low allegedly told the ex-Goldman bankers they needed to bribe officials in Malaysia and Abu Dhabi to guarantee that the transaction went through.

Hundreds of millions of dollars in bribes were subsequently paid to officials in Malaysia and Abu Dhabi. After the bond transaction was executed, more than $500 million of the bond proceeds were misappropriated into shell companies controlled by Low, Leissner, Ng and other co-conspirators, the government alleged.

Some of the funds went to finance the movie, "The Wolf of Wall Street," a 2013 Oscar-nominated film about Jordan Belfort, a corrupt stockbroker who was sent to prison for fraud, the government said.

Ng and Leissner's efforts in the scheme dated to 2009, when they began cultivating a relationship with Low, who allegedly "worked as an intermediary in relation to 1MDB and other foreign government officials" but did not hold a formal position at 1MDB and was never employed by the government. A DOJ press release refers to him as a "Malaysian financier."

Ng, a managing director at Goldman, and Leissner, who worked as Southeast Asia chairman and managing director at Goldman, sought on three occasions to make Low a formal client, but were rebuffed because officials in the compliance group had "concerns" about the source of the person's wealth and deemed he would not be a "suitable" client.

As the bond offerings proceeded, the two men concealed Low's involvement from officials in the compliance and intelligence groups at Goldman Sachs.

The transactions were structured as bond deals "rather than other forms of financing, because doing so generated much higher revenues and fees for (Goldman Sachs), improved the bank's reputational standing in both the Southeast Asian region and globally and provided Leissner and other bankers with increased remuneration and professional prestige, even though the bond financing was more expensive for 1MDB," the DOJ said in the criminal information document.

Leissner is free on a $20 million bond and pleaded guilty before a US judge in August, in Brooklyn Federal Court, a Justice Department spokesman said. He is cooperating with DOJ investigators, reported The Wall Street Journal, citing a person familiar with the matter. Lawyers representing Low and Leissner did not immediately respond to a request for comment.

Low is being represented by Marc Kasowitz, according to a DOJ spokesman. Kasowitz is an attorney who has long represented US President Donald Trump.&nbsp;

US officials unveiled criminal indictments Thursday against an intermediary to scandal-plagued Malaysian sovereign wealth fund 1MDB and a former Goldman Sachs banker involved in an elaborate alleged bribery scheme.

US officials unveiled criminal indictments Thursday against an intermediary to scandal-plagued Malaysian sovereign wealth fund 1MDB and a former Goldman Sachs banker involved in an elaborate alleged bribery scheme. They are the first US criminal charges in the case which spawned investigations around the world. The US Department of Justice arrested former Goldman Sachs banker Ng Chong Hwa in Malaysia on Thursday, while the 1MDB intermediary, Low Taek Jho, remains at large, officials said in a press release. Another ex-Goldman official, Tim Leissner, pleaded guilty and agreed to pay $43.7 million in restitution of ill-gotten gains. The 1MDB scandal has roiled politics in Malaysia, leading to criminal charges against former Prime Minister Najib Razak. The men were charged with conspiring to launder billions of dollars from 1 Malaysia Development Berhad, a sovereign wealth fund set up for development of the country, and conspiring to bribe officials in Malaysia and Abu Dhabi, violating the Foreign Corrupt Practices Act. Ng was also charged with conspiring to violate the internal controls at Goldman Sachs, which underwrote about $6.5 billion in bonds issued by 1MDB, the US government said. The funds were intended "for the benefit of the Malaysian people" but more than $2.7 billion went to kickbacks and bribes, according to the charges. Goldman Sachs, which garnered $600 million in fees and revenues from three 1MDB bond transactions detailed in the indictments, has said previously it is cooperating with the probe. A Goldman Sachs spokesman did not have immediate comment Thursday. Goldman Sachs wasn't named in the DOJ criminal documents, but was referred to as "financial institution #1." The DOJ filings say Ng and Leissner repeatedly circumvented Goldman's oversight tools for countering fraud, adding that the "business culture" at the firm, "particularly in Southeast Asia, was highly focused on consummating deals, at times prioritizing this goal ahead of the proper operation of its compliance functions," according to the Low-Ng indictment. Under one scheme involving a 2012 "Project Magnolia" bond offering by 1MDB, Low allegedly told the ex-Goldman bankers they needed to bribe officials in Malaysia and Abu Dhabi to guarantee that the transaction went through. Hundreds of millions of dollars in bribes were subsequently paid to officials in Malaysia and Abu Dhabi. After the bond transaction was executed, more than $500 million of the bond proceeds were misappropriated into shell companies controlled by Low, Leissner, Ng and other co-conspirators, the government alleged. Some of the funds went to finance the movie, "The Wolf of Wall Street," a 2013 Oscar-nominated film about Jordan Belfort, a corrupt stockbroker who was sent to prison for fraud, the government said. Ng and Leissner's efforts in the scheme dated to 2009, when they began cultivating a relationship with Low, who allegedly "worked as an intermediary in relation to 1MDB and other foreign government officials" but did not hold a formal position at 1MDB and was never employed by the government. A DOJ press release refers to him as a "Malaysian financier." Ng, a managing director at Goldman, and Leissner, who worked as Southeast Asia chairman and managing director at Goldman, sought on three occasions to make Low a formal client, but were rebuffed because officials in the compliance group had "concerns" about the source of the person's wealth and deemed he would not be a "suitable" client. As the bond offerings proceeded, the two men concealed Low's involvement from officials in the compliance and intelligence groups at Goldman Sachs. The transactions were structured as bond deals "rather than other forms of financing, because doing so generated much higher revenues and fees for (Goldman Sachs), improved the bank's reputational standing in both the Southeast Asian region and globally and provided Leissner and other bankers with increased remuneration and professional prestige, even though the bond financing was more expensive for 1MDB," the DOJ said in the criminal information document. Leissner is free on a $20 million bond and pleaded guilty before a US judge in August, in Brooklyn Federal Court, a Justice Department spokesman said. He is cooperating with DOJ investigators, reported The Wall Street Journal, citing a person familiar with the matter. Lawyers representing Low and Leissner did not immediately respond to a request for comment. Low is being represented by Marc Kasowitz, according to a DOJ spokesman. Kasowitz is an attorney who has long represented US President Donald Trump.

US charges ex-Goldman bankers with crimes related to Malaysian investment fund scandal

Goldman Sachs Group Inc&nbsp;has written down to zero the value of its stake in the Weinstein Company, the movie studio whose co-chairman Harvey Weinstein stepped down last month following sexual assault allegations, a person familiar with the matter said on Monday.

Goldman Sachs&#39; move comes as the Weinstein Company looks for fresh financing after more than 50 women claimed that Weinstein sexually harassed or assaulted them over the past three decades.

Weinstein has denied having non-consensual sex with anyone. Reuters has been unable to independently confirm any of the allegations.

Last month, Goldman Sachs said it was trying to find a buyer for its stake in the Weinstein Company. A Goldman Sachs spokesman had said at the time that the bank valued the stake at less than $1 million.&nbsp;

The source did not disclose how much of the Weinstein Company Goldman Sachs owns, but described the stake as small. He asked not to be identified because the bank has not publicly released its latest valuation.

A Weinstein Company spokeswoman did not immediately respond to multiple requests for comment.

One of the Weinstein Company&#39;s lenders, AI International Holdings Limited, an affiliate of billionaire Len Blavatnik&#39;s industrial group Access Industries, filed a lawsuit last Friday in New York State Supreme Court demanding immediate repayment of its approximately $44 million loan.

Referring to the allegations against Harvey Weinstein, AI International stated in court papers that his actions and his departure from the company have &quot;left the business&nbsp;in shambles,&quot; and &quot;exposed to potentially massive liabilities that&nbsp;have severely, if not fatally, damaged its standing in the marketplace.&quot;

A spokeswoman for Harvey Weinstein declined to comment.

The Weinstein Company&#39;s other lenders include Bank of America and MUFG Union Bank N.A., according to the lawsuit. They did not immediately respond to requests for comment.

The Weinstein Company&#39;s board of directors has been receiving advice from investment bank Moelis &amp; Co on its efforts to raise cash, including by potentially selling assets and finding a rescue loan, sources have previously told Reuters. A Moelis spokeswoman declined to comment.

Investment firm Fortress Investment Group LLC&nbsp;was considering lending to the film and TV studio, but those talks ended without a deal last week, according to another person familiar with the matter. Fortress would consider providing Weinstein Co with funding to help it through a bankruptcy process, if it came to that, the person said.

A Fortress spokesman declined to comment.

The Weinstein Company&#39;s lenders have hired investment bank Houlihan Lokey Inc for financial advice in a potential restructuring, a source close to that situation said.

The Weinstein Co has been one of Hollywood&rsquo;s most influential forces since its launch in October 2005 and has produced and distributed films including &ldquo;The King&rsquo;s Speech&rdquo; and &ldquo;Silver Linings Playbook.&rdquo;

Goldman Sachs' move comes as the Weinstein Company looks for fresh financing after more than 50 women claimed that Weinstein sexually harassed or assaulted them over the past three decades.

Goldman Sachs Group Inc has written down to zero the value of its stake in the Weinstein Company, the movie studio whose co-chairman Harvey Weinstein stepped down last month following sexual assault allegations, a person familiar with the matter said on Monday. Goldman Sachs' move comes as the Weinstein Company looks for fresh financing after more than 50 women claimed that Weinstein sexually harassed or assaulted them over the past three decades. Weinstein has denied having non-consensual sex with anyone. Reuters has been unable to independently confirm any of the allegations. Last month, Goldman Sachs said it was trying to find a buyer for its stake in the Weinstein Company. A Goldman Sachs spokesman had said at the time that the bank valued the stake at less than $1 million. The source did not disclose how much of the Weinstein Company Goldman Sachs owns, but described the stake as small. He asked not to be identified because the bank has not publicly released its latest valuation. A Weinstein Company spokeswoman did not immediately respond to multiple requests for comment. One of the Weinstein Company's lenders, AI International Holdings Limited, an affiliate of billionaire Len Blavatnik's industrial group Access Industries, filed a lawsuit last Friday in New York State Supreme Court demanding immediate repayment of its approximately $44 million loan. Referring to the allegations against Harvey Weinstein, AI International stated in court papers that his actions and his departure from the company have "left the business in shambles," and "exposed to potentially massive liabilities that have severely, if not fatally, damaged its standing in the marketplace." A spokeswoman for Harvey Weinstein declined to comment. The Weinstein Company's other lenders include Bank of America and MUFG Union Bank N.A., according to the lawsuit. They did not immediately respond to requests for comment. The Weinstein Company's board of directors has been receiving advice from investment bank Moelis & Co on its efforts to raise cash, including by potentially selling assets and finding a rescue loan, sources have previously told Reuters. A Moelis spokeswoman declined to comment. Investment firm Fortress Investment Group LLC was considering lending to the film and TV studio, but those talks ended without a deal last week, according to another person familiar with the matter. Fortress would consider providing Weinstein Co with funding to help it through a bankruptcy process, if it came to that, the person said. A Fortress spokesman declined to comment. The Weinstein Company's lenders have hired investment bank Houlihan Lokey Inc for financial advice in a potential restructuring, a source close to that situation said. The Weinstein Co has been one of Hollywood’s most influential forces since its launch in October 2005 and has produced and distributed films including “The King’s Speech” and “Silver Linings Playbook.”

Goldman Sachs marks stake in Weinstein Co to zero: Report

Traditionally buttoned-up Wall Street bank Goldman Sachs Group has relaxed the dress code for its computer engineers in a bid to attract tech talent with a more casual environment.

The fifth-largest US bank by assets told employees in its technology division to &quot;exercise judgment in determining when to adapt to business attire,&quot; according to an internal memo from late June seen by Reuters.

It did not specify whether hoodies or sneakers, the ad-hoc uniform of millennial tech workers, constitute acceptable dress.

The move, one of the first by Goldman&#39;s new chief information officer Elisha Wiesel, comes as the bank makes a push to recruit and keep hold of top tech talent in the face of intensifying competition.

Goldman and other Wall Street banks have been struggling for years to compete for the best employees with Silicon Valley firms and hedge funds, which often have better hours and workplace perks for top software developers and engineers.

Wiesel replaced Martin Chavez, now the firm&#39;s chief financial officer, as Goldman&#39;s highest ranking technology executive in January.

About a quarter of Goldman&#39;s 33,000 employees are engineers who have helped transform the firm since the 2007-2009 financial crisis by making trading more efficient and building new businesses such as its consumer lending platform called Marcus.

The majority of the bank employees still adhere to a professional business dress code unless told otherwise by their group&nbsp;manager.

Other banks are also relaxing dress codes. Last year, JPMorgan Chase said it would allow employees to wear business-casual attire on most occasions. In 2013, Barclays Plc started to allow casual Fridays.

Goldman and other Wall Street banks have been struggling for years to compete for the best employees with Silicon Valley firms and hedge funds, which often have better hours and workplace perks for top software developers and engineers

Traditionally buttoned-up Wall Street bank Goldman Sachs Group has relaxed the dress code for its computer engineers in a bid to attract tech talent with a more casual environment. The fifth-largest US bank by assets told employees in its technology division to "exercise judgment in determining when to adapt to business attire," according to an internal memo from late June seen by Reuters. It did not specify whether hoodies or sneakers, the ad-hoc uniform of millennial tech workers, constitute acceptable dress. The move, one of the first by Goldman's new chief information officer Elisha Wiesel, comes as the bank makes a push to recruit and keep hold of top tech talent in the face of intensifying competition. Goldman and other Wall Street banks have been struggling for years to compete for the best employees with Silicon Valley firms and hedge funds, which often have better hours and workplace perks for top software developers and engineers. Wiesel replaced Martin Chavez, now the firm's chief financial officer, as Goldman's highest ranking technology executive in January. About a quarter of Goldman's 33,000 employees are engineers who have helped transform the firm since the 2007-2009 financial crisis by making trading more efficient and building new businesses such as its consumer lending platform called Marcus. The majority of the bank employees still adhere to a professional business dress code unless told otherwise by their group manager. Other banks are also relaxing dress codes. Last year, JPMorgan Chase said it would allow employees to wear business-casual attire on most occasions. In 2013, Barclays Plc started to allow casual Fridays.

Goldman Sachs eases dress code at workplace to retain talent

Twitter hired Ned Segal, senior vice president of finance at Intuit and a former managing director at Goldman Sachs Group, as its chief financial officer beginning in late August.&nbsp;

Anthony Noto, who has been serving as Twitter&#39;s CFO and chief operating officer since November, will remain at the company as COO, Twitter said in a statement.

The appointment of Segal, 43, comes as investors are demonstrating renewed optimism in Twitter, which still lags rival social network Facebook in terms of size and profitability.

Twitter shares rose 3 per cent before the announcement of Segal&#39;s hiring after the market&#39;s close. The stock is up 32 per cent since April 17, when it hit the low of the year at $14.12.

In April, Twitter reported better-than-expected user growth in the first quarter of the year, partly related to heightened user interest in political news and comment.

Before joining Intuit, Segal was the CFO of RPX, which helps companies manage patent risk, and earlier spent some 17 years at Goldman, according to a biography provided by Twitter.

From 2009 to 2013, Segal was a Goldman managing director and head of its global software investment banking unit, advising tech companies on mergers, acquisitions, and initial public offerings, Twitter said.

Twitter Chief Executive Jack Dorsey said Segal was an ideal fit because of the range of his experience.

&quot;He brings a principled, engaging and rigorous approach to the CFO role, with a track record of driving profitable growth,&quot; Dorsey said in a statement.

Segal said in a statement he was committed to helping Twitter &quot;continue toward its goal of GAAP profitability.&quot;

Segal is entitled to receive a signing bonus of $300,000 and his annual salary will be $500,000, Twitter said in a securities filing. He will also be eligible to receive 1.2 million shares in the company, subject to conditions and vesting, according to the filing.

Twitter is scheduled to report earnings for the second quarter on July 27.

The appointment of Ned Segal comes as investors are demonstrating renewed optimism in Twitter, which still lags rival social network Facebook in terms of size and profitability

Twitter hired Ned Segal, senior vice president of finance at Intuit and a former managing director at Goldman Sachs Group, as its chief financial officer beginning in late August. Anthony Noto, who has been serving as Twitter's CFO and chief operating officer since November, will remain at the company as COO, Twitter said in a statement. The appointment of Segal, 43, comes as investors are demonstrating renewed optimism in Twitter, which still lags rival social network Facebook in terms of size and profitability. Twitter shares rose 3 per cent before the announcement of Segal's hiring after the market's close. The stock is up 32 per cent since April 17, when it hit the low of the year at $14.12. In April, Twitter reported better-than-expected user growth in the first quarter of the year, partly related to heightened user interest in political news and comment. Before joining Intuit, Segal was the CFO of RPX, which helps companies manage patent risk, and earlier spent some 17 years at Goldman, according to a biography provided by Twitter. From 2009 to 2013, Segal was a Goldman managing director and head of its global software investment banking unit, advising tech companies on mergers, acquisitions, and initial public offerings, Twitter said. Twitter Chief Executive Jack Dorsey said Segal was an ideal fit because of the range of his experience. "He brings a principled, engaging and rigorous approach to the CFO role, with a track record of driving profitable growth," Dorsey said in a statement. Segal said in a statement he was committed to helping Twitter "continue toward its goal of GAAP profitability." Segal is entitled to receive a signing bonus of $300,000 and his annual salary will be $500,000, Twitter said in a securities filing. He will also be eligible to receive 1.2 million shares in the company, subject to conditions and vesting, according to the filing. Twitter is scheduled to report earnings for the second quarter on July 27.

Twitter hires ex-Goldman managing director as CFO

India-born former Goldman Sachs director Rajat Gupta, who is arguing in appeal that the government lacked evidence to show he &quot;received even a penny&quot; for passing insider information, has disagreed with a US Supreme Court ruling that sharing corporate secrets is illegal even if the tipsters did not receive anything in return.

In a landmark ruling earlier this month relating to the insider trading conviction of Illinois resident Bassam Yacoub Salman, the Supreme Court unanimously ruled that sharing corporate secrets with friends or relatives is illegal even if the insider providing the tip doesn&#39;t receive anything of value in return.

68-year-old Gupta is a free man now after completing a prison term on insider trading charges but is not giving up his legal battle to overturn his conviction, arguing that he served two years in jail for conduct that is not criminal even though the government lacked evidence to show he &quot;received even a penny&quot; for passing confidential boardroom information to now jailed hedge-fund manager Raj Rajaratnam.

In May, Gupta&#39;s team of lawyers had argued in papers before the Second Circuit Court of Appeals that the judgement of the Manhattan district court finding Gupta guilty of insider trading &quot;should be reversed&quot; and his &quot;conviction should be vacated&quot;.

Gupta&#39;s appeal comes on the back of a ruling by the Manhattan appeals court that for an insider trading conviction prosecutors must show that a defendant received a personal benefit for passing illegal tips. Gupta&#39;s lawyers have cited the ruling that led to the reversal of insider convictions of hedge-fund managers Todd Newman and Anthony Chiasson in December, 2014.

In fresh court papers following the verdict in Salman&#39;s case, Gupta said there is &quot;a fatal inconsistency&quot; and he was &quot;substantially prejudiced by the invalid theory of benefit pursued at trial; and that his entitlement to relief is in no way affected&quot; by the verdict in the Salman case.

&quot;The issue on this appeal is whether the government&#39;s benefit theory (that Gupta tipped to maintain a good relationship with Rajaratnam), and the district court&#39;s instruction that the benefit could be modest, intangible and non-financial, are fatally inconsistent with Newman&#39;s quid pro quo requirement: an exchange of a tip for a benefit that is &#39;objective, consequential, and at least potentially pecuniary&#39;,&quot; Gupta&#39;s lawyers said in court papers.

The government said Gupta&#39;s appeal lacked merit even under the Newman ruling and the Salman verdict &quot;confirms the validity of the District Court&#39;s jury instructions and thus defeats Gupta&#39;s claim of error at the outset&quot;.

(PTI)

Ruling hinges on whether sharing corporate secrets is illegal, even if the insider providing the tip doesn't receive anything of value

India-born former Goldman Sachs director Rajat Gupta, who is arguing in appeal that the government lacked evidence to show he "received even a penny" for passing insider information, has disagreed with a US Supreme Court ruling that sharing corporate secrets is illegal even if the tipsters did not receive anything in return. In a landmark ruling earlier this month relating to the insider trading conviction of Illinois resident Bassam Yacoub Salman, the Supreme Court unanimously ruled that sharing corporate secrets with friends or relatives is illegal even if the insider providing the tip doesn't receive anything of value in return. 68-year-old Gupta is a free man now after completing a prison term on insider trading charges but is not giving up his legal battle to overturn his conviction, arguing that he served two years in jail for conduct that is not criminal even though the government lacked evidence to show he "received even a penny" for passing confidential boardroom information to now jailed hedge-fund manager Raj Rajaratnam. In May, Gupta's team of lawyers had argued in papers before the Second Circuit Court of Appeals that the judgement of the Manhattan district court finding Gupta guilty of insider trading "should be reversed" and his "conviction should be vacated". Gupta's appeal comes on the back of a ruling by the Manhattan appeals court that for an insider trading conviction prosecutors must show that a defendant received a personal benefit for passing illegal tips. Gupta's lawyers have cited the ruling that led to the reversal of insider convictions of hedge-fund managers Todd Newman and Anthony Chiasson in December, 2014. In fresh court papers following the verdict in Salman's case, Gupta said there is "a fatal inconsistency" and he was "substantially prejudiced by the invalid theory of benefit pursued at trial; and that his entitlement to relief is in no way affected" by the verdict in the Salman case. "The issue on this appeal is whether the government's benefit theory (that Gupta tipped to maintain a good relationship with Rajaratnam), and the district court's instruction that the benefit could be modest, intangible and non-financial, are fatally inconsistent with Newman's quid pro quo requirement: an exchange of a tip for a benefit that is 'objective, consequential, and at least potentially pecuniary'," Gupta's lawyers said in court papers. The government said Gupta's appeal lacked merit even under the Newman ruling and the Salman verdict "confirms the validity of the District Court's jury instructions and thus defeats Gupta's claim of error at the outset". (PTI)

India-born ex Goldman Sachs director fights US Supreme Court's insider trading ruling

US President-elect Donald Trump has asked Goldman Sachs executive Gary Cohn to head his White House National Economic Council, a group that coordinates economic policy across agencies, NBC News reported on Friday.

Cohn, president and chief operating officer at the Wall Street firm, had been widely considered the heir apparent to Goldman CEO Lloyd Blankfein. If he goes, it may give rise to a new group of leaders at the bank, most of whom have spent more than 20 years of their careers there.

A Goldman Sachs spokesman was not immediately available for comment.

Cohn, 56, is a former Goldman commodities trader from Ohio who joined the firm in 1990. He served in a variety of leadership roles in bond trading, becoming co-head of Goldman&#39;s broader securities and eventually, co-president in 2006.

He makes frequent appearances at industry conferences and on television, speaking on the state of the financial markets.

If he takes the post, he will be following in the footsteps of Robert Rubin and Stephen Friedman, two other one-time Goldman Sachs executives who served in that role.

He would also be joining at least two other former Goldman executives who will also be serving in the Trump administration: Steven Mnuchin, nominated to head the Treasury Department, and Steve Bannon, picked to be chief strategist at the White House.

(Reuters)

Trump asked Gary Cohn to head his White House National Economic Council, a group that coordinates economic policy across agencies

US President-elect Donald Trump has asked Goldman Sachs executive Gary Cohn to head his White House National Economic Council, a group that coordinates economic policy across agencies, NBC News reported on Friday. Cohn, president and chief operating officer at the Wall Street firm, had been widely considered the heir apparent to Goldman CEO Lloyd Blankfein. If he goes, it may give rise to a new group of leaders at the bank, most of whom have spent more than 20 years of their careers there. A Goldman Sachs spokesman was not immediately available for comment. Cohn, 56, is a former Goldman commodities trader from Ohio who joined the firm in 1990. He served in a variety of leadership roles in bond trading, becoming co-head of Goldman's broader securities and eventually, co-president in 2006. He makes frequent appearances at industry conferences and on television, speaking on the state of the financial markets. If he takes the post, he will be following in the footsteps of Robert Rubin and Stephen Friedman, two other one-time Goldman Sachs executives who served in that role. He would also be joining at least two other former Goldman executives who will also be serving in the Trump administration: Steven Mnuchin, nominated to head the Treasury Department, and Steve Bannon, picked to be chief strategist at the White House. (Reuters)

Trump offers Goldman Sachs exec key economic post: NBC

Controversial transparency group Wikileaks on Saturday released&nbsp;three of US Democratic presidential candidate Hillary Clinton&#39;s &nbsp;&#39;paid speeches&#39; to heavyweight Goldman Sachs.&nbsp;

&nbsp;

For more than a week, the transparency group has been publishing &#39;hacked emails&#39; from the account of John Podesta, Clinton&#39;s campaign chairman, Reuters reported.&nbsp;

&nbsp;

In its &#39;latest batch&#39; of hacked emails, Wikileaks claims that the documents show &nbsp;&quot;question-and-answer sessions with Goldman Sachs Chief Executive Lloyd Blankfein and Tim O&#39;Neill, the bank&#39;s head of investment management, at three separate events in 2013 in Arizona, New York and South Carolina&quot;, the international news agency highlighted in its report.&nbsp;

&nbsp;

In what appear to be the &#39;transcripts&#39; &nbsp;of the speeches that Clinton made to the financial giant between the time she left her position as secretary of state in 2013 and launched the presidential campaign in 2015, Clinton is shown offering her opinions on a range of issues. &nbsp;She is talking about financial regulations, relations with Russia and negative effects of previous WikiLeaks releases on US foreign policy, AFP reported.&nbsp;

&nbsp;

&quot;There was also a need to do something because for political reasons, if you were an elected member of Congress and people in your constituency were losing jobs and shutting businesses and everybody in the press is saying it&#39;s all the fault of Wall Street, you can&#39;t sit idly by and do nothing,&quot; Clinton reportedly said as she talked about how something had to be done to &quot;rein in Wall Street abuses&quot;.&nbsp;

&nbsp;

Clinton collected &quot;at least $1.8 million for at least eight speeches to big banks&quot;, CNN reports quoting the figures released by Clinton&#39;s campaign and tax documents she released earlier this year.&nbsp;

&nbsp;

Meanwhile, Clinton&#39;s campaign refused to comment over the leaks, however, the US government has repeatedly&nbsp;stressed that Wikileaks is working in collaboration with Russia.&nbsp;

&nbsp;

&quot;There is no getting around it: Donald Trump is cheering on a Russian attempt to influence our election through a crime reminiscent of Watergate but on a more massive scale,&quot; Glen Caplin, a Clinton campaign spokesman was quoted as saying by CNN.&nbsp;

&nbsp;

&quot;We&#39;re witnessing another effort to steal private campaign documents in order to influence an election.&quot;

&nbsp;

According to Reuters, Clinton has previously come under fire for not releasing her speeches made to the big banks while opponents accused her of having a &nbsp;&quot;cozy relationship with the bankers and other firms&quot;.&nbsp;

&nbsp;

Earlier, Democratic primary rival Senator Bernie Sanders of Vermont had argued that she could not be relied upon to regulate firms by which she has been paid, AFP reported.&nbsp;

&nbsp;

Trump has also attacked the Democratic presidential&nbsp;nominee over the leaked emails while referring to the private speeches to major banks in 2013 and 2014 where she apparently expressed views in favour of free trade and Wall Street self-regulation that are at odds with her positions as a candidate.&nbsp;

&nbsp;

(WION with inputs from AFP, Reuters)&nbsp;

The Democratic presidential candidate earlier came under fire for not releasing her speeches made to big banks

Controversial transparency group Wikileaks on Saturday released three of US Democratic presidential candidate Hillary Clinton's 'paid speeches' to heavyweight Goldman Sachs. For more than a week, the transparency group has been publishing 'hacked emails' from the account of John Podesta, Clinton's campaign chairman, Reuters reported. In its 'latest batch' of hacked emails, Wikileaks claims that the documents show "question-and-answer sessions with Goldman Sachs Chief Executive Lloyd Blankfein and Tim O'Neill, the bank's head of investment management, at three separate events in 2013 in Arizona, New York and South Carolina", the international news agency highlighted in its report. In what appear to be the 'transcripts' of the speeches that Clinton made to the financial giant between the time she left her position as secretary of state in 2013 and launched the presidential campaign in 2015, Clinton is shown offering her opinions on a range of issues. She is talking about financial regulations, relations with Russia and negative effects of previous WikiLeaks releases on US foreign policy, AFP reported. "There was also a need to do something because for political reasons, if you were an elected member of Congress and people in your constituency were losing jobs and shutting businesses and everybody in the press is saying it's all the fault of Wall Street, you can't sit idly by and do nothing," Clinton reportedly said as she talked about how something had to be done to "rein in Wall Street abuses". Clinton collected "at least $1.8 million for at least eight speeches to big banks", CNN reports quoting the figures released by Clinton's campaign and tax documents she released earlier this year. Meanwhile, Clinton's campaign refused to comment over the leaks, however, the US government has repeatedly stressed that Wikileaks is working in collaboration with Russia. "There is no getting around it: Donald Trump is cheering on a Russian attempt to influence our election through a crime reminiscent of Watergate but on a more massive scale," Glen Caplin, a Clinton campaign spokesman was quoted as saying by CNN. "We're witnessing another effort to steal private campaign documents in order to influence an election." According to Reuters, Clinton has previously come under fire for not releasing her speeches made to the big banks while opponents accused her of having a "cozy relationship with the bankers and other firms". Earlier, Democratic primary rival Senator Bernie Sanders of Vermont had argued that she could not be relied upon to regulate firms by which she has been paid, AFP reported. Trump has also attacked the Democratic presidential nominee over the leaked emails while referring to the private speeches to major banks in 2013 and 2014 where she apparently expressed views in favour of free trade and Wall Street self-regulation that are at odds with her positions as a candidate. (WION with inputs from AFP, Reuters)

Wikileaks releases Clinton's 'paid speeches' for Goldman Sachs

In response to a slowdown in the Asian markets, Wall Street bank Goldman Sachs is cutting banking jobs in Asia outside of Japan.&nbsp; 
 
It will reduce the number of bankers to almost 30 per cent of the 300 investment banking jobs in the market.&nbsp; 
 
Sources told Reuters that those working on mergers and acquisitions (M&amp;A), and equity and debt capital markets deals will be affected.&nbsp; 
 
It will be left to slightly more than 200 bankers across Asia. 
 
The process is already underway with most of the job cuts expected in Hong Kong, Singapore and China.&nbsp; 
 
Goldman and other big investment banks are grappling with a harsh environment for deals across Asia after the region&#39;s economies and markets failed to deliver sustained growth after the 2008 financial crisis.&nbsp; 
 
The total value of M&amp;A deals across the Asia-Pacific region has dropped to $572.9 billion so far this year, from $745.7 billion in the same period of 2015. 
 
The local competitors have also eaten into their business.&nbsp; 
 
Goldman said in July it had embarked on a cost-cutting plan that would save $700 million a year in response to a &quot;challenging backdrop&quot; for revenue. 
 
Its investment banking revenue fell 11 per cent to $1.79 billion in the second quarter. 
 
Many of Goldman&#39;s European rivals have announced plans to scale down their operations in Asia. 
 
Barclays said in January that it would cut about 1,000 staff in its investment bank operations worldwide, with the bulk happening in Asia, while Societe Generale decided to close its equities research desk in India. 
 
Other European banks including BNP Paribas and Deutsche Bank are expected to scale back operations in non-core Asian markets. 
 
(WION with inputs from Reuters) 
&nbsp;

Grappling with a harsh environment for investment across Asia,Goldman Sachs is cutting nearly 30 per cent banking jobs in the region

In response to a slowdown in the Asian markets, Wall Street bank Goldman Sachs is cutting banking jobs in Asia outside of Japan. It will reduce the number of bankers to almost 30 per cent of the 300 investment banking jobs in the market. Sources told Reuters that those working on mergers and acquisitions (M&A), and equity and debt capital markets deals will be affected. It will be left to slightly more than 200 bankers across Asia. The process is already underway with most of the job cuts expected in Hong Kong, Singapore and China. Goldman and other big investment banks are grappling with a harsh environment for deals across Asia after the region's economies and markets failed to deliver sustained growth after the 2008 financial crisis. The total value of M&A deals across the Asia-Pacific region has dropped to $572.9 billion so far this year, from $745.7 billion in the same period of 2015. The local competitors have also eaten into their business. Goldman said in July it had embarked on a cost-cutting plan that would save $700 million a year in response to a "challenging backdrop" for revenue. Its investment banking revenue fell 11 per cent to $1.79 billion in the second quarter. Many of Goldman's European rivals have announced plans to scale down their operations in Asia. Barclays said in January that it would cut about 1,000 staff in its investment bank operations worldwide, with the bulk happening in Asia, while Societe Generale decided to close its equities research desk in India. Other European banks including BNP Paribas and Deutsche Bank are expected to scale back operations in non-core Asian markets. (WION with inputs from Reuters)

Goldman Sachs scales down investment banking jobs in Asia by 30 per cent

Less than a year after the coal industry was declared to be in terminal decline, the fossil fuel has staged its steepest price rally in over half a decade, making it one of the hottest major commodities. 
 
Cargo prices for Australian thermal coal from its Newcastle terminal, seen as the Asian benchmark, have soared over 35 per cent since mid-June to more than one-year highs of almost $70 a tonne, pushed by surprise increases in Chinese imports. 
 
&quot;Coal markets, after five years of declining prices, appear to have found a bottom in the first quarter,&quot; Australia&#39;s Whitehaven Coal said on today, as its shares hit a three-year high on the release of its annual results. 
 
&quot;Reasons for the increase in prices include mine closures in Indonesia, United States and Australia and policy change by Chinese authorities,&quot; Whitehaven said, adding it was confident that coal prices will rise. 
 
Goldman Sachs, reversing a gloomy outlook it issued last September, said this week restrictions on domestic production by Chinese regulators had turned coal &quot;into one of the best performing commodities so far this year.&quot; 
 
Global mining majors like Glencore and Anglo American, but also regional Asian players like Whitehaven and Thailand&#39;s Banpu, are reaping the benefits. 
 
All four have seen their shares rise sharply, particularly since China in April cut mine operating days by 16 per cent in a bid to help meet its target of reducing capacity by 250 million tonnes this year. 
 
Banpu, which operates several export mines across Asia-Pacific, said this week that it expects to sell its 2016 coal supplies at an average price of over $50 a tonne, up from a previous target of $47 to $48 per tonne. 
 
The price recovery is an unexpected boon for miners, who were hit hard by a years-long downturn, and stands in sharp contrast to previous calls by Goldman and the International Energy Agency (IEA), who said last year that coal was in terminal decline. 
 
As a result of China&#39;s surprise move, Goldman said there was now &quot;support (for) global prices for the foreseeable future.&quot; 
 
The bank raised its three, six and 12 month price forecasts to $65/$62/$60 per tonne for Newcastle coal, up as much as 38 per cent from its previous outlook. 
 
Winners and losers 
 
Coal has also been garnering support from Asian industrial powerhouses Japan and South Korea, while demand remains firm in India, Vietnam and the Philippines. 
 
Japan and South Korea have both said they want to expand future coal imports while reducing more expensive imports of liquefied natural gas (LNG). 
 
China&#39;s power consumption has also risen against expectations, jumping 8.2 per cent from a year ago in July to reach 552.3 billion kilowatt hours. 
 
While almost all thermal coal miners were hit by the previous price decline, and most shut or sold assets, those left with the best assets now stand to benefit from the rebound. 
 
The biggest winners are those with mines in Australia, thanks to the high average quality of its coal. 
 
Whitehaven said it was confident its high quality coals will continue to attract a premium price. 
 
Shares of Anglo American, a major thermal coal miner in Australia, have also recovered from record lows earlier this year of around 2.2 pounds to around 8.7 pounds. 
 
Glencore, the world&#39;s biggest thermal coal exporter with huge Australian operations, has also seen its shares soar from around 70 pence early this year to nearly 2 pounds. 
 
Glencore was not available for comment ahead of reporting its half-year results on Aug. 24.&nbsp;Other miners have not been able to benefit from coal&#39;s 2016 boom. 
 
Indonesia, the world&#39;s biggest exporter of thermal coal, has seen its output fall during the lull, and its miners are unable to raise production due to debt constraints. 
 
(Reuters)

Cargo prices for Australian thermal coal from its Newcastle terminal have soared over 35 per cent since mid-June

Less than a year after the coal industry was declared to be in terminal decline, the fossil fuel has staged its steepest price rally in over half a decade, making it one of the hottest major commodities. Cargo prices for Australian thermal coal from its Newcastle terminal, seen as the Asian benchmark, have soared over 35 per cent since mid-June to more than one-year highs of almost $70 a tonne, pushed by surprise increases in Chinese imports. "Coal markets, after five years of declining prices, appear to have found a bottom in the first quarter," Australia's Whitehaven Coal said on today, as its shares hit a three-year high on the release of its annual results. "Reasons for the increase in prices include mine closures in Indonesia, United States and Australia and policy change by Chinese authorities," Whitehaven said, adding it was confident that coal prices will rise. Goldman Sachs, reversing a gloomy outlook it issued last September, said this week restrictions on domestic production by Chinese regulators had turned coal "into one of the best performing commodities so far this year." Global mining majors like Glencore and Anglo American, but also regional Asian players like Whitehaven and Thailand's Banpu, are reaping the benefits. All four have seen their shares rise sharply, particularly since China in April cut mine operating days by 16 per cent in a bid to help meet its target of reducing capacity by 250 million tonnes this year. Banpu, which operates several export mines across Asia-Pacific, said this week that it expects to sell its 2016 coal supplies at an average price of over $50 a tonne, up from a previous target of $47 to $48 per tonne. The price recovery is an unexpected boon for miners, who were hit hard by a years-long downturn, and stands in sharp contrast to previous calls by Goldman and the International Energy Agency (IEA), who said last year that coal was in terminal decline. As a result of China's surprise move, Goldman said there was now "support (for) global prices for the foreseeable future." The bank raised its three, six and 12 month price forecasts to $65/$62/$60 per tonne for Newcastle coal, up as much as 38 per cent from its previous outlook. Winners and losers Coal has also been garnering support from Asian industrial powerhouses Japan and South Korea, while demand remains firm in India, Vietnam and the Philippines. Japan and South Korea have both said they want to expand future coal imports while reducing more expensive imports of liquefied natural gas (LNG). China's power consumption has also risen against expectations, jumping 8.2 per cent from a year ago in July to reach 552.3 billion kilowatt hours. While almost all thermal coal miners were hit by the previous price decline, and most shut or sold assets, those left with the best assets now stand to benefit from the rebound. The biggest winners are those with mines in Australia, thanks to the high average quality of its coal. Whitehaven said it was confident its high quality coals will continue to attract a premium price. Shares of Anglo American, a major thermal coal miner in Australia, have also recovered from record lows earlier this year of around 2.2 pounds to around 8.7 pounds. Glencore, the world's biggest thermal coal exporter with huge Australian operations, has also seen its shares soar from around 70 pence early this year to nearly 2 pounds. Glencore was not available for comment ahead of reporting its half-year results on Aug. 24. Other miners have not been able to benefit from coal's 2016 boom. Indonesia, the world's biggest exporter of thermal coal, has seen its output fall during the lull, and its miners are unable to raise production due to debt constraints. (Reuters)

After years of pain, coal becomes one of the hottest commodities of the year

In a new development linked to the 1MDB corruption scandal, a former Hong Kong-based investment fund is suing Goldman Sachs for conflict of interest in advising a 2011 Malaysian bank merger. 
 
Primus Pacific Partners said Tuesday that Goldman and its then managing director in Southeast Asia, Tim Leissner, concealed its close relationship with Malaysian Prime Minister Najib Razak when the bank was recruited to advise EON Capital, partly owned by Primus, in its $1.7 billion sale to Malaysia&#39;s Hong Leong Bank (HLB). 
 
Najib &quot;had close family and business ties with HLB&quot; giving him an interest in the success of HLB&#39;s takeover of EON, Primus charged in a statement. 
 
At the same time that Goldman was advising EON on the merger, though, the New York investment bank was also the key advisor to 1MDB, the government investment fund established and chaired by Najib. 
 
Goldman used its role advising EON to &quot;secretly curry favor with the Prime Minister by using the (EON) board&#39;s confidential information&quot; to help Hong Leong&#39;s bid for EON, it said. 
 
Goldman allegedly convinced EON&#39;s board that Hong Leong&#39;s bid was fair, &quot;even though Goldman Sachs knew that the bid in fact was well below the fair intrinsic value of the company.&quot; 
 
Primus, which held 20 percent of EON at the time, asked a New York court to award it $510 million for fraud and breach of fiduciary duty by Goldman Sachs. 
 
That includes $170 million for what Primus said Goldman&#39;s alleged misconduct cost it in the deal, and another $340 million in punitive damages. 
 
The lawsuit came after a move by US authorities to seize $1 billion in properties bought with money allegedly siphoned off from 1MDB, which placed a spotlight on Goldman Sachs&#39; role in the burgeoning scandal. 
 
With Leissner its main contact with the Malaysian authorities, Goldman had raised billions of dollars for 1MDB. 
 
One month after he left Goldman, in March Leissner was subpoenaed by the US Justice Department in its investigation into the scandal. 
 
Goldman said it would fight the lawsuit, noting that Primus had lost a 2011 legal challenge to the merger in Malaysian courts. 
 
&quot;This plaintiff previously lost its challenge in the Malaysian courts seeking to stop a transaction involving a Malaysian company, which was then approved by shareholders. We will vigorously contest this misguided additional lawsuit in New York court,&quot; it said in a statement. 
 
(AFP) 
&nbsp;

Goldman said it would fight the lawsuit in New York court, noting that Primus Pacific Partners had lost a 2011 legal challenge to the merger

In a new development linked to the 1MDB corruption scandal, a former Hong Kong-based investment fund is suing Goldman Sachs for conflict of interest in advising a 2011 Malaysian bank merger. Primus Pacific Partners said Tuesday that Goldman and its then managing director in Southeast Asia, Tim Leissner, concealed its close relationship with Malaysian Prime Minister Najib Razak when the bank was recruited to advise EON Capital, partly owned by Primus, in its $1.7 billion sale to Malaysia's Hong Leong Bank (HLB). Najib "had close family and business ties with HLB" giving him an interest in the success of HLB's takeover of EON, Primus charged in a statement. At the same time that Goldman was advising EON on the merger, though, the New York investment bank was also the key advisor to 1MDB, the government investment fund established and chaired by Najib. Goldman used its role advising EON to "secretly curry favor with the Prime Minister by using the (EON) board's confidential information" to help Hong Leong's bid for EON, it said. Goldman allegedly convinced EON's board that Hong Leong's bid was fair, "even though Goldman Sachs knew that the bid in fact was well below the fair intrinsic value of the company." Primus, which held 20 percent of EON at the time, asked a New York court to award it $510 million for fraud and breach of fiduciary duty by Goldman Sachs. That includes $170 million for what Primus said Goldman's alleged misconduct cost it in the deal, and another $340 million in punitive damages. The lawsuit came after a move by US authorities to seize $1 billion in properties bought with money allegedly siphoned off from 1MDB, which placed a spotlight on Goldman Sachs' role in the burgeoning scandal. With Leissner its main contact with the Malaysian authorities, Goldman had raised billions of dollars for 1MDB. One month after he left Goldman, in March Leissner was subpoenaed by the US Justice Department in its investigation into the scandal. Goldman said it would fight the lawsuit, noting that Primus had lost a 2011 legal challenge to the merger in Malaysian courts. "This plaintiff previously lost its challenge in the Malaysian courts seeking to stop a transaction involving a Malaysian company, which was then approved by shareholders. We will vigorously contest this misguided additional lawsuit in New York court," it said in a statement. (AFP)

Goldman Sachs sued over 1MDB links in Malaysian bank merger

Goldman Sachs&#39; work with Malaysian sovereign wealth fund 1MDB is under the spotlight over US government&#39;s allegations that billions of dollars were diverted for the personal use of officials in the south-east Asian country. 
 
The Wall Street bank helped 1Malaysia Development Berhad (1MDB), a development company owned by the government of Malaysia, raise $6.5 billion in three bond sales in 2012 and 2013 to invest in energy projects and real estate to boost the Malaysian economy. 
 
Instead, more than $2.5 billion raised from those bonds was misappropriated by high-level 1MDB officials, their relatives and associates, US department of justice civil lawsuits filed in court on Wednesday said. 
 
Prosecutors said the money was used to buy artwork, including paintings by Vincent Van Gogh and Claude Monet, luxury properties in New York and London and gambling debts in Las Vegas. 
 
Goldman Sachs, which earned close to $600 million to arrange and underwrite the 1MDB bonds, has not been accused of any wrongdoing. 
 
&quot;We helped raise money for a sovereign wealth fund that was designed to invest in Malaysia. We had no visibility into whether some of those funds may have been subsequently diverted to other purposes,&quot; a spokesman for the bank said. 
 
The FBI and other US regulators, including New York&#39;s department of financial services, have been investigating Goldman Sachs&#39; business relationship with 1MDB. 
 
The Wall Street bank had deep ties with 1MDB and Malaysia. In May 2012, it had helped 1MDB raise $1.75 billion in a bond deal it dubbed &quot;Project Magnolia&quot;, and $1.75 billion in a separate bond issue it called &quot;Project Maximus&quot; in October 2012. 
 
The justice department said that the offering circulars for the two bonds contained &quot;material misrepresentations and omissions&quot; over what the proceeds of the bonds would be used for and the nature of the relationship between 1MDB and International Petroleum Investment Company (IPIC), an entity owned by the Abu Dhabi government. 
 
IPIC guaranteed one bond directly and another one indirectly. The US government&#39;s allegations were that no reference to IPIC&#39;s indirect guarantee was included on the second bond offering circular. 
 
After 1MDB received the proceeds of the 2012 bonds, approximately $1.3 billion was misappropriated and fraudulently diverted to bank accounts in Switzerland and Singapore, according to the lawsuits. 
 
In 2013, Goldman helped 1MDB raise $3 billion, in a transaction referred to as &quot;Project Catalyze&quot;. The Department of Justice lawsuit said that more than $1.26 billion in proceeds from that bond was diverted to overseas shell company accounts. 
 
US authorities said that the offer document used to sell the bond failed to disclose that individuals connected to 1MDB would receive hundreds of millions of dollars from the bond proceeds within days of its closing. 
 
&quot;This fact would have been material to the bond transaction, as it would have alerted investors to the possibility of conflicts of interest and related-party transactions,&quot; one of the lawsuits said. 
 
(Reuters)&nbsp;

FBI and other US regulators have been probing Goldman Sachs' business relationship with 1MDB, Malaysian government's development company

Goldman Sachs' work with Malaysian sovereign wealth fund 1MDB is under the spotlight over US government's allegations that billions of dollars were diverted for the personal use of officials in the south-east Asian country. The Wall Street bank helped 1Malaysia Development Berhad (1MDB), a development company owned by the government of Malaysia, raise $6.5 billion in three bond sales in 2012 and 2013 to invest in energy projects and real estate to boost the Malaysian economy. Instead, more than $2.5 billion raised from those bonds was misappropriated by high-level 1MDB officials, their relatives and associates, US department of justice civil lawsuits filed in court on Wednesday said. Prosecutors said the money was used to buy artwork, including paintings by Vincent Van Gogh and Claude Monet, luxury properties in New York and London and gambling debts in Las Vegas. Goldman Sachs, which earned close to $600 million to arrange and underwrite the 1MDB bonds, has not been accused of any wrongdoing. "We helped raise money for a sovereign wealth fund that was designed to invest in Malaysia. We had no visibility into whether some of those funds may have been subsequently diverted to other purposes," a spokesman for the bank said. The FBI and other US regulators, including New York's department of financial services, have been investigating Goldman Sachs' business relationship with 1MDB. The Wall Street bank had deep ties with 1MDB and Malaysia. In May 2012, it had helped 1MDB raise $1.75 billion in a bond deal it dubbed "Project Magnolia", and $1.75 billion in a separate bond issue it called "Project Maximus" in October 2012. The justice department said that the offering circulars for the two bonds contained "material misrepresentations and omissions" over what the proceeds of the bonds would be used for and the nature of the relationship between 1MDB and International Petroleum Investment Company (IPIC), an entity owned by the Abu Dhabi government. IPIC guaranteed one bond directly and another one indirectly. The US government's allegations were that no reference to IPIC's indirect guarantee was included on the second bond offering circular. After 1MDB received the proceeds of the 2012 bonds, approximately $1.3 billion was misappropriated and fraudulently diverted to bank accounts in Switzerland and Singapore, according to the lawsuits. In 2013, Goldman helped 1MDB raise $3 billion, in a transaction referred to as "Project Catalyze". The Department of Justice lawsuit said that more than $1.26 billion in proceeds from that bond was diverted to overseas shell company accounts. US authorities said that the offer document used to sell the bond failed to disclose that individuals connected to 1MDB would receive hundreds of millions of dollars from the bond proceeds within days of its closing. "This fact would have been material to the bond transaction, as it would have alerted investors to the possibility of conflicts of interest and related-party transactions," one of the lawsuits said. (Reuters)

Goldman Sachs under spotlight in Malaysian fund scandal

Around 20 startup banks and financial firms have reaffirmed plans to invest a total of up to 500 million pounds ($664.95 million) to open in Britain, consulting firm PwC said today. 
 
These investment plans will be a boost for Britain&#39;s financial services sector, beset by rumors of job cuts and firms moving overseas in the aftermath of Britain&#39;s vote to leave the European Union and potentially surrender some of its access to EU markets. 
 
The banks are a mixture of UK, European, and non-EU businesses and have already committed 200 million pounds, PwC said, with total funding of up to half a billion pounds featured in their business plans. 
 
Stephen Morse, financial services partner at PwC, said the around 20 clients investing in Britain were not only mainstream banks, mortgage lenders and asset managers. 
 
&quot;There are a range of new technology-enabled banks, fintech businesses, commercial banks and even niche investment banks who have identified gaps in the market in part caused by big global banks having pulled out of some businesses over the past few years,&quot; he said. 
 
Since the Brexit vote last week, banks, including Goldman Sachs (GS.N) and Morgan Stanley (MS.N), have denied rumors they are already moving thousands of jobs out of Britain as a result of the referendum. 
 
(Reuters)

The banks, which are a mixture of UK, European and non-EU businesses, have already committed 200 million Pounds

Around 20 startup banks and financial firms have reaffirmed plans to invest a total of up to 500 million pounds ($664.95 million) to open in Britain, consulting firm PwC said today. These investment plans will be a boost for Britain's financial services sector, beset by rumors of job cuts and firms moving overseas in the aftermath of Britain's vote to leave the European Union and potentially surrender some of its access to EU markets. The banks are a mixture of UK, European, and non-EU businesses and have already committed 200 million pounds, PwC said, with total funding of up to half a billion pounds featured in their business plans. Stephen Morse, financial services partner at PwC, said the around 20 clients investing in Britain were not only mainstream banks, mortgage lenders and asset managers. "There are a range of new technology-enabled banks, fintech businesses, commercial banks and even niche investment banks who have identified gaps in the market in part caused by big global banks having pulled out of some businesses over the past few years," he said. Since the Brexit vote last week, banks, including Goldman Sachs (GS.N) and Morgan Stanley (MS.N), have denied rumors they are already moving thousands of jobs out of Britain as a result of the referendum. (Reuters)

20 startup banks may invest up to 500 million Pounds to open in Britain

Dutch chipmaking equipment firm ASML Holdings NV has agreed to buy Taiwanese peer Hermes Microvision Inc (HMI) for about T$100 billion ($3.1 billion) to strengthen the pair&#39;s technology offering for semiconductor manufacturers. 
 
The transaction would be one of the biggest inbound acquisitions for Taiwan, an island known for its tech industry. It comes after US memory chipmaker Micron Technology Inc said late last year that it planned to buy the remaining interest in its Taiwanese joint venture in a deal valued around $3.2 billion. 
 
It would also be the latest consolidation in a global semiconductor industry faced with an increasingly saturated smartphone market - once a key growth driver - as well as the emergence of deep-pocketed Chinese players. 
 
Late last month, Taiwan&#39;s two biggest chip testing and packaging companies said they would come together under a new holding company. 
 
&quot;The bigger get bigger,&quot; said chip analyst Steve Huang at Yuanta Investment Consulting. 
 
ASML is the world&#39;s biggest chipmaking equipment supplier, with customers including Taiwan Semiconductor Manufacturing Co Ltd, Intel Corp and Samsung Electronics Co Ltd. HMI&#39;s technology is used to scan and test for wafer defects in the semiconductor manufacturing process. 
 
Both companies, which already work together, will be able to share research, development and intellectual property under one roof, analysts said, which is key as their customers migrate toward ever smaller and more advanced manufacturing processes. 
 
&quot;It paints a very complex landscape,&quot; said ASML chief executive Peter Wenninck in a video posted on the company&#39;s website explaining the deal&#39;s rationale. &quot;The times of point solutions are gone. We need integrated solutions.&quot; 
 
Under terms of the deal, each HMI shareholder would receive T$1,410 per share in cash. That represents a near 17 per cent premium to the stock&#39;s Wednesday close of T$1,210 before the deal&#39;s announcement. 
 
Today shares of Taiwan-listed HMI rose by their daily limit of 10 per cent, and were last trading at T$1,330. 
 
ASML&#39;s acquisition of HMI will be part-funded by about 1.5 billion Euros ($1.69 billion) of debt, the two companies said. 
 
The pair expects the deal to be completed in the fourth quarter of this year. 
 
Goldman Sachs and Credit Suisse acted as financial advisors on the deal for HMI and ASML respectively. 
(Reuters)

Both the companies will mutally benefit from this transaction as they can share research, development and intellectual property

Dutch chipmaking equipment firm ASML Holdings NV has agreed to buy Taiwanese peer Hermes Microvision Inc (HMI) for about T$100 billion ($3.1 billion) to strengthen the pair's technology offering for semiconductor manufacturers. The transaction would be one of the biggest inbound acquisitions for Taiwan, an island known for its tech industry. It comes after US memory chipmaker Micron Technology Inc said late last year that it planned to buy the remaining interest in its Taiwanese joint venture in a deal valued around $3.2 billion. It would also be the latest consolidation in a global semiconductor industry faced with an increasingly saturated smartphone market - once a key growth driver - as well as the emergence of deep-pocketed Chinese players. Late last month, Taiwan's two biggest chip testing and packaging companies said they would come together under a new holding company. "The bigger get bigger," said chip analyst Steve Huang at Yuanta Investment Consulting. ASML is the world's biggest chipmaking equipment supplier, with customers including Taiwan Semiconductor Manufacturing Co Ltd, Intel Corp and Samsung Electronics Co Ltd. HMI's technology is used to scan and test for wafer defects in the semiconductor manufacturing process. Both companies, which already work together, will be able to share research, development and intellectual property under one roof, analysts said, which is key as their customers migrate toward ever smaller and more advanced manufacturing processes. "It paints a very complex landscape," said ASML chief executive Peter Wenninck in a video posted on the company's website explaining the deal's rationale. "The times of point solutions are gone. We need integrated solutions." Under terms of the deal, each HMI shareholder would receive T$1,410 per share in cash. That represents a near 17 per cent premium to the stock's Wednesday close of T$1,210 before the deal's announcement. Today shares of Taiwan-listed HMI rose by their daily limit of 10 per cent, and were last trading at T$1,330. ASML's acquisition of HMI will be part-funded by about 1.5 billion Euros ($1.69 billion) of debt, the two companies said. The pair expects the deal to be completed in the fourth quarter of this year. Goldman Sachs and Credit Suisse acted as financial advisors on the deal for HMI and ASML respectively. (Reuters)

Dutch firm ASML to buy Taiwan's Hermes Microvision for $3.1 billion

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