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Where do all those ethnic stereotypes come from?

To think Fonterra got financial advice from Goldman Sachs - no wonder Fonterra is $6 billion in the red and made a nearly $200 million loss, and are now selling off key assets like Tip Top! To top that off they paid a guy $8 million to screw us over! As a Kiwi first, and a dairy farmer second, I am totally pissed off!!!

Rolling Stone writer,Matt Taibi,referred to them as the Vampire Squid that rules the world.;_ylu=X3oDMT..]


The Australian Financial Review (AFR) reported this morning that Fonterra hired broker Goldman Sachs to buy up to 10 per cent of Bega, worth an estimated NZ$85.8m, in an after-market raid in a bid to protect its licensing agreement with Bega.

AFR understood Fonterra will continue its buying program this morning.

Goldman Sachs offered Bega shareholders, which include Perpetual and Karara Capital, A$4.95 a share, which was a 12.3 per cent premium to their A$4.41 close last night. Shareholders were told the buyer was seeking a strategic stake and the raid was not a precursor to a takeover of Bega.

Any takeover would prove difficult regardless of Fonterra's intentions, because Bega's constitution prevents anyone owning more than 10 per cent without approval. Fonterra recently appointed former Goldman Sachs banker Mike Everett as an adviser.

In an unprecedented move that possibly foreshadows similar charges from the US DOJ - and lots of headaches for the "recently retired" Lloyd Blankfein - the Malaysian attorney general has filed criminal charges against Goldman Sachs - targeting two of the investment bank's Asian subsidiaries and two former Goldman bankers who have already been charged by the US (former Southeast Asia head Tim Leissner and banker Roger Ng), accusing the investment bank of violating the country's securities laws by lying in bond agreements for three deals that raised $6.5 billion for 1MDB, a Malaysian sovereign wealth fund formed under former Prime Minister Najib Razak that US authorities believe was looted for upwards of $4 billion by corrupt bankers and officials.

While authorities in Singapore, Switzerland and elsewhere had already filed criminal charges against various banks involved with the scandal last year, the first charges against Goldman and its employees over their involvement in the scandal materialized two months ago when the DOJ indicted Leissner and Ng.

Shortly after the indictments, media reports revealed that senior Goldman executives - most notably, former CEO Lloyd Blankfein - were involved with the transactions. Blankfein attended at least three meetings with either Razak or disgraced Malaysian financier Jho Low, the allegedly corrupt financier who was also indicted by Malaysian authorities on Monday, even inviting Low to a private sit down at Goldman's 200 West Street headquarters. While pursuing the deal, Goldman employees - including Blankfein - brushed aside concerns raised by the bank's compliance department, and allowed Low to function as an unofficial intermediary between the bank and the Malaysian government, despite the bank's compliance department warning that Low was not to be trusted. The DOJ is also reportedly looking into the role of other senior Goldman bankers.

Malaysia wants Goldman Sachs not only to return the bonds’ total value amounting to $6.5 billion, but an additional $1 billion. The sum is to cover $600 million in fees paid to the bank as well as bond coupons that the minister says were higher than the market rate.

It is not yet known what sum Attorney-General Tommy Thomas will seek as damages in the suit, but it was earlier reported that the fines for the accused bankers may be at least 1 million ringgit ($240,000).

The bank still denies any wrongdoing. “The 1MDB bond offerings were meant to raise money to benefit Malaysia,” it told Reuters. Goldman Sachs reiterated its previous claim that Malaysian officials were to blame for stealing “huge portion of those funds.”

On Thursday, investors reportedly filed a class action lawsuit against Goldman Sachs over its role in the 1MDB scandal, accusing it of deceiving and covering up key information from investors.

The mounting legal problems come as the bank’s shares sank to the lowest point in more than three years amid the row with Malaysia. Its stock is currently trading at around $168, down from a high of more than $270 in March.

The scandal with the Malaysian state fund has been making headlines for years and is being investigated in at least six countries. It involves high-ranking Malaysian officials including former Prime Minister Najib Razak who have been accused of helping to loot billions from the fund.


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