Mike Mayo Says Goldman Should Resolve 1MDB Before U.S. Election
- Failure could hurt stock price, DOJ and Malaysia, Mayo said
- It’s time for top deal-maker Solomon to close a deal
Photographer: Daniel Acker/Bloomberg
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Goldman Sachs Group Inc. should reach a 1MDB settlement before the U.S. presidential election, according to Wells Fargo bank analyst Mike Mayo.
“Time is of the essence given the November election, which could undo prior work,” Mayo wrote in a note. He slashed his estimate for Goldman’s third quarter generally accepted accounting principles earnings by $1 billion, or $2.15 per share, to account for a potential $3 billion to $4 billion settlement.