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Goldman Sachs Tumbles on 1MDB Scandal and 'Fear of the Unknown'

  • Malaysia says it wants ‘full refund’ of all the fees it paid
  • It’s not the cash, say analysts, it’s the mounting uncertainty
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Goldman's Solomon Says 1MDB Scandal Was 'Distressing'
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Goldman Sachs Group Inc.’s reputation is facing one of its biggest crises of the decade -- and now its shares are, too.

Since prosecutors implicated a trio of Goldman Sachs bankers in a multibillion-dollar Malaysian fraud early this month, investors have endured an almost daily drip of news on the firm’s ties to the scandal. The barrage culminated Monday as the country’s finance minister demanded a “full refund,” tipping Goldman’s shares into their biggest drop since 2011.