Three news to start your week: May 13

Three key news stories to kick off your week: Goldman Sachs closes 1MDB case, Italian governor under house arrest for corruption, FAA investigates Boeing's 787 Dreamliner inspections.

Three news to start your week: May 13

Goldman Sachs criminal case over 1MDB formally ends


A US judge formally closed the criminal case against Goldman Sachs after the bank fulfilled all requirements and paid a substantial $2.9 billion in penalties, marking a significant milestone in the Wall Street bank's involvement with the Malaysian fund 1MDB.

Chief Judge Margo Brodie of the federal court in Brooklyn dismissed the bribery conspiracy charge against Goldman, acknowledging the successful completion of the three-year deferred prosecution agreement, which expired in October.

The bank played a crucial role by assisting in selling $6.5 billion in bonds for 1MDB, a fund established by former Malaysian Prime Minister Najib Razak and Malaysian financier Jho Low to spur economic growth.

Both US and Malaysian authorities have determined that a staggering $4.5 billion was diverted, with a portion funnelled to offshore bank accounts and shell companies connected to Low, who is now a fugitive from justice. 


An Italian governor accused in a corruption probe has been placed under house arrest

(The Washington Post)

The governor of the Italian region surrounding the port city of Genoa was placed under house arrest as part of a corruption investigation. Prosecutors allege that he granted political favors in exchange for money. Giovanni Toti, president of the Liguria region, remains confident that he will be able to explain everything, as his lawyer, Stefano Savi, stated.

According to the judge's order, Toti is accused of favoring local figures in return for funding four local elections in 2021 and 2022. Several individuals, including members of Toti's staff and businessmen from Genoa, have also been implicated in the investigation.

The regional government of Liguria released a statement affirming its belief that Toti has always prioritized Liguria's exclusive interests. In the meantime, the council has appointed the vice president of the region to temporarily assume all administrative duties.


FAA is investigating Boeing over 787 Dreamliner Inspections

(The New York Times)

The Federal Aviation Administration has initiated a new investigation into Boeing following the company's disclosure that it may have neglected mandatory inspections related to the wings of certain 787 Dreamliners. 

According to the FAA's statement, Boeing informed it of the issue last month. As part of its inquiry, the agency is now examining whether employees at the company falsified aircraft records.

The FAA further emphasized that Boeing is conducting re-inspections on all Dreamliners currently in production and must develop a plan to address aircraft already in service. "As the investigation continues, the FAA will take any necessary action — as always — to ensure the safety of the flying public," the statement said.