Goldman executive barred from banking by Fed over role in 1MDB scandal
Banker is third Goldman exec the Fed has banned
FOX Business' Charlie Gasparino explains how Goldman Sachs could face billions more in fines and settlements with countries such as Singapore and Malaysia.
WASHINGTON -- The Federal Reserve on Tuesday said it had permanently barred a senior Goldman Sachs Group Inc. executive from the banking industry over his role in a high-profile corruption scandal.
The Fed barred Andrea Vella for his role in Goldman's financing of a multibillion-dollar fraud involving the 1Malaysia Development Bhd. sovereign-wealth fund.
A Goldman spokeswoman said Vella is no longer with the firm. He had been on leave since October 2018. Before that date, he served as the bank's co-head of investment banking in Asia.
CLICK HERE TO READ MORE ON FOX BUSINESS
An Italian-born banker, Vella played key roles in Malaysian bond offerings in 2012 and 2013 that have since ensnared the New York bank in a sprawling corruption probe. He is the third Goldman executive barred from the industry by the Fed.
Vella, according to the Fed, failed to escalate internal concerns about Jho Low, a Malaysian financier involved in the transactions.
GOLDMAN SACHS PROFIT TUMBLES 24% DESPITE TRADING SURGE
"Low was a person of known concern to Goldman, and his involvement indicated heightened potential underwriting risks," the Fed said in a statement.