Citi says Goldman face a tough time over 1MDB

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A “tough legal setup” for Goldman Sachs in the 1MDB case may result in fines of as much as $9 billion, Citi analysts Keith Horowitz and Eileen Shao wrote in a note.

Bloomberg News reports that the scandal, centering on the firm’s raising money for a Malaysian state investment fund, has been weighing on Goldman’s stock price for months, they said. Shares are probably “fairly valued” now, given the continued overhang.

Since November, Goldman’s “underperformance represents about $12 billion of lost market cap, which we attribute largely to 1MDB concerns.” While many investors may view Goldman shares trading at tangible book multiple as a buying opportunity, “we view it as appropriate,” Horowitz and Shao said.

Hit the link below to access the complete Bloomberg News article:

Goldman Faces ‘Tough Legal Setup’ With 1MDB Case, Citi Says

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