Goldman Sachs cuts quarterly earnings, citing legal provisions relating to the 1MDB scandal

Investing

Motorcyclists pass a 1Malaysia Development Berhad (1MDB) billboard at the Tun Razak Exchange development in Kuala Lumpur, Malaysia, February 3, 2016.

Olivia Harris | Reuters

Goldman Sachs on Friday lowered its previously stated quarterly net earnings applicable to common shareholders to $197 million from $2.25 billion.

The bank said in a filing it had set aside $2.96 billion for potential legal and regulatory costs, up from the $945 million announced on July 15 with its second-quarter earnings.

On July 24, the bank agreed to pay the Malaysia government $3.9 billion to settle a criminal probe over its role in the multibillion-dollar 1MDB scandal.

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