Goldman executive barred from banking by Fed over role in 1MDB scandal
Banker is third Goldman exec the Fed has banned
WASHINGTON -- The Federal Reserve on Tuesday said it had permanently barred a senior Goldman Sachs Group Inc. executive from the banking industry over his role in a high-profile corruption scandal.
The Fed barred Andrea Vella for his role in Goldman's financing of a multibillion-dollar fraud involving the 1Malaysia Development Bhd. sovereign-wealth fund.
A Goldman spokeswoman said Vella is no longer with the firm. He had been on leave since October 2018. Before that date, he served as the bank's co-head of investment banking in Asia.
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An Italian-born banker, Vella played key roles in Malaysian bond offerings in 2012 and 2013 that have since ensnared the New York bank in a sprawling corruption probe. He is the third Goldman executive barred from the industry by the Fed.
Vella, according to the Fed, failed to escalate internal concerns about Jho Low, a Malaysian financier involved in the transactions.
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"Low was a person of known concern to Goldman, and his involvement indicated heightened potential underwriting risks," the Fed said in a statement.