Goldman’s Malaysian Scandal Revives the ‘Too Big to Jail’ Debate

Should corporations be charged for crimes their employees commit?

That nettlesome question has come back to the fore as law enforcement authorities take aim at Goldman Sachs for its involvement in a vast scandal at a Malaysian investment fund.

The Malaysian government on Monday filed criminal charges against Goldman, accusing the bank of making false and misleading statements when it raised money for the fund, called 1Malaysia Development Berhad, or 1MDB. The immediate consequences of the Malaysian charges against Goldman subsidiaries are likely to be limited, but the action will stir up discussion about how United States prosecutors should proceed and whether they should bring criminal charges against Goldman. read more »

Two Former Executives of Panasonic Unit Settle With SEC Over Charges of Accounting Violations

Two former senior executives of a U.S. unit of electronics manufacturer Panasonic Corp. violated accounting rules stemming from a scandal that cost the company more than $280 million, the Securities and Exchange Commission said Tuesday.

Panasonic Avionics in April agreed to pay $137.4 million to the U.S. Justice Department as part of a deferred-prosecution agreement over a charge it caused the falsification of the financial records of its parent company. Panasonic Corp. agreed at the time to disgorge about $143 million in profits. read more »

Estonia arrests ten in Danske Bank money laundering inquiry

Estonia has arrested 10 former employees of the local branch of Danske Bank as part of an international investigation into alleged money laundering.

Authorities in Denmark, Estonia, Britain and the United States are investigating payments totaling 200 billion euros ($229 billion) made through the tiny Estonian branch of Denmark’s largest bank between 2007 and 2015. read more »