Goldman is clawing back or cutting millions in pay from CEO Solomon, Blankfein and others over 1MDB

Investing

(L-R) Lloyd Blankfein and David Solomon attend NYSCF Annual Summer Cocktail Reception at Private Residence on July 15, 2016 in Sagaponack, NY.

Sean Zanni | Patrick McMullan | Getty Images

Goldman Sachs is moving to claw back tens of millions of dollars in compensation it’s paid executives including CEO David Solomon and former CEO Lloyd Blankfein over the 1MDB international scandal.

The company is expected to announce a broad settlement with U.S. authorities over its role in the 1MDB debacle, in which a $6.5 billion Malaysian investment fund was looted with the help of some of the bank’s employees.

The clawbacks include current and former employees, according to a person with knowledge of the situation. The move was reported earlier by the Wall Street Journal, which said that the bank would also cut pay for current executives.

The punishment meted out by the board of the New York-based bank may be viewed as an indirect acknowledgement that Goldman’s leaders had some responsibility for the episode. Top executives were on committees that reviewed the deals, several outlets including CNBC has previously reported.

This story is developing. Please check back for updates.

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