In November, the Justice Department announced that former Goldman partner Tim Leissner had pleaded guilty to violating US anti-bribery and money laundering laws and agreed to pay $43.7 million in restitution. "It's very clear that the people of Malaysia were defrauded by many individuals including the highest members of the prior government," said. "Per Leissner's role in that fraud, we apologize for the Malaysian people."
But Solomon also defended the bank as a whole, saying it had been misled by Leissner and senior officials in the Malaysian government about the role of a key intermediary in the scandal, Low Taek Jho. Goldman helped arrange $6.5 billion in bonds for 1MDB. Kuala Lampur has filed criminal charges against Goldman and two former employees for alleged theft.
A Justice Department indictment of Low Taek Jho and Ng Chong Hwa, another ex-Goldman banker, that identified Goldman as "Financial Institution no. 1" said the firm's business culture at times emphasized dealmaking "ahead of the proper operation of its compliance functions."
Solomon said employees at Goldman were "extremely angry" about Leissner's role but that morale was good on the whole due to the bank's strong financial performance. Goldman has suffered a "reputation dent" tied to the scandal, Solomon acknowledged, but added that the effect on clients had been "de minimus."