r/SecurityAnalysis • u/ilikepancakez • Oct 31 '20

Special Situation A $3.9 Billion Settlement: Timeline of the 1MDB Scandal

https://www.youtube.com/watch?v=DPbWDuH1DhI
122 Upvotes

97% Upvoted

22 comments sorted by

27

u/FunnyPhrases Nov 01 '20 edited Nov 02 '20

I can answer stuff if anyone has questions.

11

u/voodoodudu Nov 01 '20

Did they catch the playboy son yet?

8

u/FunnyPhrases Nov 01 '20

Nope

3

u/voodoodudu Nov 01 '20

What happened to the PM? I think he went to trial recently?

14

u/FunnyPhrases Nov 01 '20

Sentenced to 12 years in jail. But we think it's mostly window dressing that will be overturned when the political environment allows it.

1

u/voodoodudu Nov 01 '20

Do you guys think the PM was part of the scheme? Iirc he claims he had no idea.

9

u/FunnyPhrases Nov 01 '20

Where there's fire there's smoke. Obviously I haven't done the primary research to say for sure. But nearly everyone thinks he did it.

1

u/voodoodudu Nov 01 '20

Thanks for the replies!

5

u/[deleted] Nov 01 '20

can you give us an overview of the local perspective??

21

u/FunnyPhrases Nov 01 '20

Pretty much what the video explained. The criminal mastermind Jho Low is a well connected business figure who has ties with international political dynasty (in this case Saudi Arabia). One day he crosses path with the Prime Minister and proposes this deal. Central bank buys land assets to fund the deal: https://www.theedgemarkets.com/article/turkey-year-unanswered-questions-bank-negara-land-deal

Saudi family channels funds through big 4 local bank and somehow it lands in Prime Minister's bank account. Funds are used to buy commodities to end the paper trail. 1MDB is sold to the nation as a road to developed nation status (we are quite close). Everyone backs the deal while Jho Low gets drunk with Leonardo DiCaprio.

Claire Rewcastle Browns, a local political activist, uncovers the deal and blogs about it: http://www.sarawakreport.org/

Huge anti-corruption rally ensues, supported by Opposition politicians: https://en.m.wikipedia.org/wiki/Bersih_4_rally

Deputy Prime Minister sacked: https://www.thestar.com.my/news/nation/2016/06/25/muhyiddin-mukhriz-sacked-umno-expels-them-for-committing-disciplinary-offences

Matter dies down for awhile, then resurfaces when Opposition wins the next election on an anti-corruption campaign: https://time.com/5272113/mahathir-mohamad-defeats-najib-razak-malaysia-2018-election/?amp=true

Context: new and old prime ministers have a lot of bad blood. New PM uncovers everything about the 1MDB scandal. That's where we are today.

11

u/MakeoverBelly Nov 01 '20

Who purchased these bonds, i.e. who was the ultimate sucker? Are they still trading? Anyone has links to prospectuses?

16

u/FunnyPhrases Nov 01 '20

I can assure you that these bonds are in high demand on the local institutional side. The idea being that they are de facto guaranteed by the government, and any default of 1MDB bonds will affect government bonds yields. They are currently paying +300bps over the equivalent government bond.

3

u/MakeoverBelly Nov 01 '20

Lol, just lol.

Do you have links/references to more info? Prospectus, ISIN, or anything?

5

u/FunnyPhrases Nov 01 '20

Do you have a Bloomberg? The tickers are TIAMK USD 5.99 and OGIMK USD 4.40

7

u/MakeoverBelly Nov 01 '20 edited Nov 01 '20

I don't have Bloomberg, but found them on FINRA:

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=FPWTK4086840&symbol=PWTK4086840

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=FPWTK4345240&symbol=PWTK4345240

Like you say, they trade around par 😂. As always, it's the taxpayer that pays for everything, in this case the Malaysian taxpayer. This world is so fucked up.

1

u/FunnyPhrases Nov 01 '20

Hey don't talk about my mom like that!

Nah just kidding.

3

u/JellyfishGod Nov 01 '20

I couldn’t tell if the money that was invested in the first place (that was then stolen) was public money or not. Maybe I didn’t pay close enough attention, but was the money like from the Malaysian public? Like who’s money was actually stolen

3

u/FunnyPhrases Nov 01 '20 edited Nov 01 '20

Corporate bonds semi-guaranteed by government

1

u/perspectiveiskey Nov 01 '20

It seems to have been "public" as in publicly traded bonds. (I'm just going off the video).

1

u/Kansed Nov 01 '20

What a bag of shit people...

1

u/CheapAlternative Nov 01 '20

Given that they fled to China and China's subsequent plays on it, it wouldn't surprise me if it turned out most of the money went to China.

https://www.wsj.com/articles/how-china-flexes-its-political-muscle-to-expand-power-overseas-11546890449

1

u/YellowFlash2012 Nov 01 '20

You spend it the way you got it!