$10 mn pay-cut for Goldman Sachs CEO over 1MDB scandal

Yahoo – AFP, January 27, 2021 

Goldman Sachs CEO David Michael Solomon saw his salary cut
due to the 1MDB Malaysian bribery scandal 

Goldman Sachs cut its CEO David Solomon's 2020 salary by $10 million to $17.5 million because of the bank's role in the 1MDB Malaysian bribery scandal, according to documents filed Tuesday. 

"The amounts of remuneration reflect the decision announced by the board of directors," said a securities filing that also detailed pay-cuts for COO John Waldron and CFO Stephen Scherr. 

Although the three were not "aware of the firm's participation in any illicit activity at the time the firm arranged the 1MDB bond transactions, the Board views the 1MDB matter as an institutional failure," it said. 

Goldman Sachs pleaded guilty in October over its role in the scandal, and agreed to pay nearly $3 billion to close US investigations. 

Former Malaysian leader Najib Razak was sentenced last year to 12 years in jail on corruption charges linked to the scandal that led to the downfall of his government.

Goldman Sachs agrees to largest penalty ever in 1MDB scandal

Yahoo – AFP, October 22, 2020 

The Malaysian unit of global financial titan Goldman Sachs pleaded guilty
in a US court in the massive 1MDB Malaysian bribery scandal

Global financial titan Goldman Sachs agreed to pay $2.9 billion in penalties to settle criminal charges in the 1MDB Malaysian bribery scandal, the largest US fine ever in a corruption case, the Justice Department announced Thursday. 

Acting US Assistant Attorney General Brian C. Rabbitt said Goldman "accepted responsibility" in the case that involved $1.6 billion in bribes, the largest ever recorded, and massive gains laundered through the US financial system. 

Goldman Sachs helped raise $6.5 billion for the Malaysian government's sovereign wealth fund, and the US Justice Department has said more than $4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015. 

The investment fund "was looted by corrupt officials and their co-conspirators, including senior Goldman bankers" turning it "into a piggy bank for corrupt public officials and their cronies," Rabbitt said at a press briefing. 

In a first for Goldman Sachs, the company's Malaysian unit pleaded guilty in a US court Thursday for violations of US bribery law as part of a deal to end the criminal probe in the sweeping case that involved authorities in nine countries. 

The guilty plea could curtail activities of Goldman Sachs Malaysia but allows the parent company to avoid admitting wrongdoing in court -- which would have damaged its ability to do business. 

'Meaningful consequences' 

The parent company pleaded not guilty in US court and agreed to "deferred prosecution" for three-and-a-half years, which is expected to impose certain conditions including increased monitoring. 

But Rabbitt stressed that the company has been charged in the bribery scandal, "so there has been a significant amount of criminal liability" for Goldman and "imposes meaningful consequences" in the cases. 

The Justice Department has charged three individuals in the case including two former Goldman executives. Tim Leissner, the former Southeast Asia Chairman, has pleaded guilty, while Ng Chong Hwa, also known as "Roger Ng," former head of investment banking for GS Malaysia, is awaiting trial, and Low Taek Jho remains a fugitive. 

"Goldman admitted today that, in order to effectuate the scheme, Leissner, Ng, Employee 1, and others conspired with Low Taek Jho" to pay the bribes and ignored red flags, the statement said. 

In another stunning turn, the company said it will demand repayment $174 million in salary and bonuses paid to current and former executives including Chief Executive David Solomon and his predecessor Lloyd Blankfein. 

These so-called clawbacks are almost unheard of in corporate cases. 

Solomon said in a statement "it is abundantly clear that certain former employees broke the law, lied to our colleagues and circumvented firm controls,"adding, "we recognize that we did not adequately address red flags." 

Included in the total penalty amount, Goldman will pay a $400 fines to the SEC and repay $600 million in earnings, and pay a $154 million fine to the Federal Reserve which also will require the company to improve its risk management and internal oversight. 

The Malaysian government dropped the charges against Goldman in July after reaching a $3.9 billion settlement with the financial giant. 

The firm, which posted profits of $3.5 billion in the latest quarter, had set aside more than $3.1 billion as of September 30 "for litigation and regulatory proceedings."

Related Article:

Goldman Sachs fined US$350 million in Hong Kong over1MDB

Malaysia in $3.9 bn settlement with Goldman over 1MDB

Yahoo – AFP, Sam Reeves, July 24, 2020

Factfile on the 1MDB scandal in Malaysia. (AFP Photo/John SAEKI)

Kuala Lumpur (AFP) - Malaysia reached a $3.9 billion settlement with Goldman Sachs Friday over the Wall Street titan's role in the 1MDB scandal in exchange for the country ending all criminal proceedings against the bank.

Billions of dollars were looted from sovereign wealth fund 1Malaysia Development Berhad in a fraud that allegedly involved former prime minister Najib Razak and his cronies.

The cash plundered from state coffers bankrolled a global spending spree, and was spent on everything from artwork, to real estate and a super-yacht.

Goldman's role came under scrutiny over bond issues totalling $6.5 billion it helped arrange for the investment vehicle, with Malaysia claiming large amounts were misappropriated during the process.

Najib lost power in 2018 amid public anger at the scandal, and a new government charged Goldman and a string of former and current employees over the fraud, as well as demanding hefty compensation.

Malaysia and Goldman had been locked in long-running talks, and the country's finance ministry announced a breakthrough had finally been achieved.

The settlement comprises a cash payment of $2.5 billion to Malaysia and a guarantee that at least $1.4 billion in assets acquired with misappropriated funds would be recovered, it said.

"This settlement represents assets that rightfully belong to the Malaysian people," Finance Minister Tengku Zafrul Abdul Aziz said.

"We are confident that we are securing more money from Goldman Sachs compared to previous attempts, which were far below expectations."

Prime Minister Muhyiddin Yassin hailed a "victory" and said that, combined with 1MDB-linked funds already returned to Malaysia by the US, the country will receive a total of $4.5 billion.

Ex-PM Najib Razak is currently facing three, 1MDB-linked trials, and the verdict 

in the first is due to be handed down Tuesday (AFP Photo/Mohd RASFAN)

'Important step'

However, the previous Malaysian government, which lost power earlier this year, had demanded $7.5 billion in compensation from Goldman.

When they charged the Goldman, Malaysian prosecutors had accused the bank of making false statements which led to $2.7 billion being misappropriated in relation to the bond issues.

But after Malaysia announced the settlement, Goldman said the deal resolves "all the criminal and regulatory proceedings in Malaysia involving the firm".

"Today's settlement is an important step towards putting the 1MDB matter behind us and will help enable the Malaysian government to move forward with additional recovery efforts," it said.

After losing power at the 2018 elections, Najib was hit with dozens of charges linked to the controversy and is currently facing three trials. On Tuesday, a court will hand down its verdict in his first trial over the scandal.

He denies wrongdoing.

A former Goldman partner, Tim Leissner, has previously pleaded guilty in the US over his part in the controversy.

A Malaysian former managing director at the bank, Ng Chong Hwa, has also been charged in the US and Malaysia over the scandal.

The US Department of Justice, which is investigating the fraud as huge sums were allegedly laundered through the US financial system, says that about $4.5 billion was looted from 1MDB.

The scandal's alleged mastermind, jet-setting Malaysian financier Low Taek Jho, has also been charged in Malaysia and the US.

Low denies any wrongdoing, and his current whereabouts are unknown.

Malaysia ex-PM Najib's 1MDB graft trial resumes

Yahoo – AFP, M. Jegathesan, April 15, 2019

Former prime minister Najib Razak (shown at the start of his trial on April 3) and
his cronies are accused of stealing billions of dollars from 1MDB and spending it on
everything from high-end real estate to artworks and a luxury yacht (AFP Photo/
Mohd RASFAN)

Toppled Malaysian leader Najib Razak returned to court for the second day of his high-profile corruption trial Monday, with the former premier accused of plundering large sums from scandal-hit state fund 1MDB.

The 65-year-old finally went on trial this month over his alleged role in looting the investment vehicle, the first of several court cases he is expected to face over the controversy.

The ex-prime minister and his cronies are accused of stealing billions of dollars from 1MDB and spending it on everything from high-end real estate to artworks and a luxury yacht.

The allegations played a large part in prompting voters to oust his corruption-plagued coalition, which had been in power for six decades, at historic elections last year. Since then, Najib has been arrested and hit with dozens of charges over the scandal.

The ex-leader's highly-anticipated trial began on April 3, with Najib denying seven charges related to the theft of 42 million ringgit ($10.2 million) from SRC International, a former 1MDB unit.

It is just a fraction of the money Najib is accused of stealing -- he has also been charged in a separate case over the alleged transfer of $681 million to his bank account.

He arrived at the High Court in Kuala Lumpur Monday for the second day of proceedings, wearing a dark suit and tie, and passed through a scrum of journalists before entering the courtroom and taking his seat in the dock.

Bank raid

The main witness called Monday was Azizul Adzani Abdul Ghafar, an investigating officer from the central bank, who was part of a team that raided the branch of a local lender, AmBank.

Factfile on the Malaysian 1MDB corruption allegations and charges faced by 

Malaysia's former leader Najib Razak (AFP Photo/Laurence CHU, John SAEKI)

The officers seized documents related to accounts held by Najib at the bank, accounts belonging to SRC International, and accounts held by another company. The stolen money from SRC was allegedly sent to Najib's accounts at AmBank.

Earlier Najib's defence team cross-examined Companies Commission of Malaysia official Muhamad Akmaluddin Abdullah, who had testified when the trial opened, on matters related to SRC's records.

After the trial was adjourned for the day, Najib's chief lawyer Muhammad Shafee Abdullah said the prosecution would have to prove the ex-leader knew the money flows were illicit to convict him.

“There can be many transactions. The issue is does (Najib) know the exact thing that is going on, does he know in fact it is from illegal sources?" he told reporters outside court.

"The prosecution need to show that he is complicit, that he is part of the conspiracy."

Najib has consistently denied any wrongdoing over the looting of 1MDB.

Prime Minister Mahathir Mohamad, who came out of retirement to lead an alliance to a shock election victory against Najib's government last year, has pledged to bring Najib to justice and recoup the huge sums of cash stolen from 1MDB.

The US Department of Justice, which is investigating the 1MDB controversy as money was allegedly laundered through the American financial system, believes $4.5 billion in total was looted from the fund.

Malaysia has also charged Wall Street titan Goldman Sachs over the scandal, alleging the bank and its former employees stole billions of dollars from 1MDB.

Goldman Sachs loosens its tie with casual dress code

Yahoo – AFP, March 6, 2019

Top brass at Goldman Sachs unveiled a new "firm-wide flexible dress code" that
essentially directs bankers to use attire that is in line with client expectations
(AFP Photo/SPENCER PLATT)

New York (AFP) - Global banking giant Goldman Sachs is loosening its tie as it works to stay current with younger employees who favor more casual dress.

Top brass at the investment bank announced a break from Wall Street's notoriously buttoned up and rigid dress, unveiled a new "firm-wide flexible dress code" that essentially directs bankers to use attire that is in line with client expectations.

The shift appears to be targeted especially towards clients in the hot tech sector, which is known for especially schlumpy, casual clothing.

"Goldman Sachs has a broad and diverse client base around the world, and we want all of our clients to feel comfortable with and confident in our team, so please dress in a manner that is consistent with your clients' expectations," said the memo, which was signed by the bank's top three executives, including Chief Executive David Solomon.

Perhaps worried about employees taking the new dress code too far, the executives reminded staff to "consistently exercise good judgment," adding that "All of us know what is and is not appropriate for the workplace."

The style shift -- which comes as Goldman and other Wall Street giants compete for talent with Silicon Valley behemoths -- drew barbs on Twitter, including images of "The Dude," Jeff Bridge's sloppy incarnation in the cult hit movie "The Big Lebowski."

The bank even poked fun at itself, tweeting a survey on what bankers should wear and saying it was "asking for a friend."

"Hoodie & Sneakers" led the poll, with 38 percent with "Suit" second at 28 percent.

Humbled Goldman Sachs still faces questions on 1MDB

Yahoo – AFP, Luc OLINGA, 9 February 2019

Executives at Goldman Sachs headquarters face questions over the firm's work\
for scandal-ridden Malaysian fund 1MDB

Goldman Sachs's decision to potentially cut bonuses for top executives over the 1MDB scandal reflects an acknowledgement at shareholder and public outrage over the debacle.

The prestigious investment bank announced last week that it could withhold millions of dollars in bonuses to former Chief Executive Lloyd Blankfein and two other retired executives depending on the outcome of ongoing probes into the Malaysian fund.

The bonuses were first approved in 2011 and the annual payouts depend on the firm's performance over the ensuing eight years. In Blankfein's case, the bonus began at $7 million and nearly doubled, according to US securities documents.

Beyond the bonuses, Goldman also said it could claw back compensation from current chief executive David Solomon and two other current senior executives, president John Waldron and chief financial officer Stephen Scherr.

Solomon was paid $23 million last year, including $15.4 million in stock options.

The announcement on bonuses was intended as a message for shareholders who are upset at how the corruption scandal has tarred the bank's image at a time when it is working to build up its consumer banking business through the online platform Marcus, according to two people familiar with the matter.

The board of directors wants shareholders to know it is not blind to the gravity of the situation, said one of the sources, adding that the message was not meant to be an admission of wrongdoing.

Besides Solomon, who also serves as chairman, Goldman's 13-member board includes ArcelorMittal chief executive Lakshmi Mittal.

Experts say Goldman Sachs could face a fine of perhaps $2 billion under a criminal case related to 1MDB.

Goldman Sachs chief executive David Solomon is among

 the company leaders who could see compensation

clawed back depending on probes over 1MDB

Under scrutiny

In January, Solomon apologized to Malaysia over the scandal and the involvement of former Goldman partner Tim Leissner, who had pleaded guilty to violating US anti-bribery and money laundering laws.

Solomon's statement stood out in tone from that of Blankfein, who said during the height of the financial crisis in 2009 that he was "doing God's work" in helping companies raise capital.

US authorities have accused a Malaysian financial intermediary, Low Taek Jho, along with Leissner and another former Goldman banker, Ng Chong Hwa, of conspiring to launder billions of dollars from 1 Malaysia Development Berhad, a sovereign wealth fund set up for development of the country. Goldman garnered $600 million in fees and revenues from 1MDB bond transactions.

US officials maintain that more than $2.7 billion in funds went to kickbacks and bribes.

Pointed questions facing Goldman Sachs include revelations it proceeded with its first transaction with 1MDB to finance a $1.75 billion purchase of power plants despite being warned by rival bank Lazard that the deal looked suspicious, according to a source.

Also, a division of the investment bank agreed to do business with Low Taek Jho even though he was rejected in 2011 from opening an account because bank officials could not determine the source of his wealth, a person familiar with the matter told AFP.

"The due diligence functions at Goldman Sachs fell apart," said Richard Bove, analyst at Odeon Capital and a frequent Goldman critic.

"If you're going to raise $6 billion for someone you better know everything there is to know about that someone."

The three transactions were presented to the bank's investment committees for Asia and firm-wide, which required 1MDB to pay a larger-than-usual fee because 1MDB was opposed to a syndicated loan, saddling Goldman with all of the risk, a source said.

Goldman declined comment and Lazard did not respond requests for comment.

Goldman says former Malaysia govt lied, after charges filed

Yahoo – AFP, December 18, 2018

Billions of dollars were allegedly stolen from the 1MDB fund and used to buy everything
from yachts to artwork, in an audacious fraud that involved former Malaysian leader
Najib Razak and contributed to his government's shock defeat at May elections (AFP
Photo/MOHD RASFAN)

Kuala Lumpur (AFP) - Goldman Sachs on Tuesday accused the former Malaysian government and state fund 1MDB of lying to the bank, after Kuala Lumpur charged the Wall Street titan over a massive financial scandal.

Malaysia's attorney-general Monday filed criminal charges against the US bank and two of its ex-employees over the alleged looting of 1MDB.

Billions of dollars were allegedly stolen from the fund and used to buy everything from yachts to artwork, in an audacious fraud that involved former Malaysian leader Najib Razak and contributed to his government's shock defeat at May elections.

Goldman has faced mounting questions about its role as the bank helped 1MDB raise $6.5 billion through a series of bond issues.

Monday's charges allege the bank's subsidiaries and the two ex-bankers, working with a shadowy Malaysian financier, misappropriated $2.7 billion, bribed officials and gave false statements as they helped 1MDB to raise the cash.

But Goldman said in a statement that "certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions."

"1MDB, whose CEO and board reported directly to the prime minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved," it said.

The Malaysian financier named in the charges, Low Taek Jho, allegedly masterminded the fraud and had huge influence over 1MDB but held no official positions at the fund.

He has been hit with several rounds of charges but maintains his innocence.

The ex-Goldman bankers named in the charges are Tim Leissner, who worked as Southeast Asia chairman and managing director at Goldman, and Ng Chong Hwa, a managing director at the bank.

The bank added that it was "not afforded an opportunity to be heard prior to the filing of these charges against certain Goldman Sachs entities, which we intend to vigorously contest".

Malaysian authorities are seeking fines above the $2.7 billion allegedly misappropriated from the bond issues as well as the $600 million Goldman earned in fees, and long jail terms for those accused.

As well as Leissner, Ng and Low, Malaysian authorities charged former 1MDB employee Jasmine Loo Ai Swan.

The bank's shares fell 2.7 percent Monday after the charges were announced.

Criminally charged with looting Malaysia's 1MDB, Wall Street titan Goldman Sachs says former government and fund lied to the bankhttps://t.co/bfWW3mAnWn pic.twitter.com/gaOHyUml2c

— AFP news agency (@AFP) December 18, 2018

US charges ex-Goldman Sachs bankers in Malaysia graft scandal

Yahoo – AFP, John BIERS, November 2, 2018

The 1MDB scandal led to criminal charges against former Malaysian prime minister
 Najib Razak, seen being escorted to court by police in Kuala Lumpur in October
2018 (AFP Photo/MOHD RASFAN)

New York (AFP) - US officials have unveiled criminal charges against two former Goldman Sachs bankers over the scandal-plagued Malaysian sovereign wealth fund 1MDB, raising fresh questions about corporate culture at the prestigious investment bank.

The Justice Department arrested former Goldman Sachs banker Ng Chong Hwa in Malaysia on Thursday, and unsealed charges against Tim Leissner, another ex-Goldman banker, who has already pleaded guilty and agreed to pay $43.7 million in restitution of ill-gotten gains.

Both men were charged with conspiracy to commit bribery and conspiracy to commit money laundering.

The Justice Department also announced criminal charges against Low Taek Jho, an alleged mastermind and an intermediary to the Malaysian fund. US officials say he remains at large.

Goldman Sachs itself was not charged.

These are the first US criminal charges in the case which spawned investigations around the world.

Conspiring to launder billions

The 1MDB scandal has had a major impact in Malaysia, with allegations of involvement of top officials contributing to the downfall of the long-ruling coalition at elections in May.

Former prime minister Najib Razak has since been arrested and charged over the scandal. He denies any wrongdoing.

Factfile on the Malaysian 1MDB corruption allegations. (AFP Photo/
Laurence CHU, John SAEKI )

The men were charged with conspiring to launder billions of dollars from 1 Malaysia Development Berhad, a sovereign wealth fund set up for development of the country, and conspiring to bribe officials in Malaysia and Abu Dhabi, violating the Foreign Corrupt Practices Act.

Low, in a statement through his spokesman, maintained his innocence.

"Mr. Low simply asks that the public keep an open mind regarding this case until all of the evidence comes to light, which he believes will vindicate him," it said.

Ng was also indicted for conspiring to violate the internal controls at Goldman Sachs, which underwrote about $6.5 billion in bonds issued by 1MDB, the US government said.

The funds were intended "for the benefit of the Malaysian people" but more than $2.7 billion went to kickbacks and bribes, according to the charges.

Goldman Sachs, which garnered $600 million in fees and revenues from three 1MDB bond transactions detailed in the indictments, has said previously it has received subpoenas and requests for information on the case from various governments and regulatory bodies.

Goldman Sachs, which said it is cooperating in the probe, was not named in the DOJ criminal documents, but was referred to as "financial institution #1."

The DOJ said Ng and Leissner repeatedly circumvented Goldman's oversight tools for countering fraud, adding that the "business culture" at the firm, "particularly in Southeast Asia, was highly focused on consummating deals."

The documents refer to a third unnamed Goldman official who is an Italian national. The banker, Andrea Vella, was put on leave in October, according to a person familiar with the matter.

Alleged mastermind Low Taek Jho, (C) pictured with Swizz Beatz and Alicia 

Keys at a charity ball in 2014, remains at large (AFP Photo/Dimitrios Kambouris)

Hiding Low's involvement

Under one scheme involving a 2012 "Project Magnolia" bond offering by 1MDB, Low allegedly told the ex-Goldman bankers they needed to bribe officials in Malaysia and Abu Dhabi to guarantee that the transaction went through.

Hundreds of millions of dollars in bribes were subsequently paid to officials in Malaysia and Abu Dhabi. After the bond transaction was executed, more than $500 million of the bond proceeds were misappropriated into shell companies controlled by Low, Leissner, Ng and other co-conspirators, the government alleged.

Some of the funds went to finance the movie, "The Wolf of Wall Street," a 2013 Oscar-nominated film about Jordan Belfort, a corrupt stockbroker who was sent to prison for fraud, the government said.

Ng and Leissner's efforts in the scheme dated to 2009, when they began cultivating a relationship with Low, who allegedly "worked as an intermediary in relation to 1MDB and other foreign government officials" but did not hold a formal position at 1MDB and was never employed by the government.

Ng, a managing director at Goldman, and Leissner, who worked as Southeast Asia chairman and managing director at Goldman, sought on three occasions to make Low a formal client, but were rebuffed because officials in the compliance group had "concerns" about the source of the person's wealth and deemed he would not be a "suitable" client.

As the bond offerings proceeded, the two men concealed Low's involvement from Goldman Sachs officials.

Leissner is free on a $20 million bond and pleaded guilty before a US judge in August, in Brooklyn Federal Court. He is cooperating with DOJ investigators, The Wall Street Journal reported.

Lawyers for Leissner did not respond to requests for comment. Low is represented by Marc Kasowitz, an attorney who has formerly represented US President Donald Trump, a DOJ spokesman said.

Goldman Sachs says US tax reform to cut earnings by $5 bn

Yahoo – AFP, December 29, 2017

Goldman Sachs reported net profits of $2.4 billion in the fourth quarter of 2016,
while the annual total last year was $7.4 billion (AFP Photo/Drew Angerer)

New York (AFP) - US banking giant Goldman Sachs said Friday the recently-enacted US tax reform will cut its earnings this year by about $5 billion, mainly because of a tax targeting earnings held abroad.

The tax reform package is expected to "result in a reduction of approximately $5 billion in earnings for the fourth quarter," the company said in a statement.

"Approximately two-thirds of which is due to the repatriation tax."

The one-time hit means a likely loss for the fourth quarter for the banking group when it reports quarterly and annual earnings January 17. Goldman Sachs reported net profits of $2.4 billion in the fourth quarter of 2016, while the annual total last year was $7.4 billion.

US President Donald Trump last week signed into law a sweeping overhaul of the US tax code, in what was his first major legislative victory since taking office nearly a year ago.

The measure is expected to boost corporate profits of banks and other companies over the medium and long term by lowering the corporate tax rate to 21 percent from 35 percent.

However, several large corporations have signaled that the law will result in a short-term hit on earnings repatriated from overseas. The reform taxes these earnings at 15.5 percent on cash and equivalents and eight percent on real estate and other illiquid assets.

Other large companies that have alluded to large one-time hits in the fourth quarter include Credit Suisse, Barclays and Royal Dutch Shell.

Despite the impact of the repatriation tax, large companies have strongly backed the tax reform, arguing it will boost growth in the long term.

Analysts are generally upbeat about the earnings prospects of large banks heading into 2018 in the wake of US tax reform, as well as the Trump administration's moves to streamline bank regulations, higher Federal Reserve interest rates and solid economic growth.

A note from CFRA Research earlier this month gave a "positive" outlook on diversified banks, saying "the success of the banks passing the 2017 Federal Reserve stress tests opens the door for improved shareholder return through dividend increases and share repurchases."

Shares of Goldman Sachs dipped 0.8 percent to $254.41 in early trading Friday, the last trading day of the year.

Bannon out as Trump chief strategist

Yahoo – AFP, August 18, 2017

Steve Bannon, the former head of ultra conservative outlet Breitbart News, has
been described as being the nucleus of one of several competing power centers
in what has been a chaotic White House (AFP Photo/Brendan Smialowski)

Washington (AFP) - President Donald Trump on Friday finally parted ways with controversial far-right chief strategist Steve Bannon, after weeks of speculation and as the administration reels from the fallout over Trump's response to a violent white supremacist rally.

Seen as the driving force behind Trump's nationalist-populist agenda -- making him a hero of the so-called "alt right" and a bete noire for centrists -- Bannon's presence at the White House has been contested from the start.

He was the latest in a series of high-profile casualties in Trump's inner circle, including press secretary Sean Spicer, chief of staff Reince Priebus and communications director Anthony Scaramucci.

With Trump under fire from all sides for insisting anti-racism protesters were equally to blame for violence stemming from a weekend rally staged by neo-Nazis and white supremacists in Charlottesville, Virginia, the president faced renewed pressure to let go of his firebrand aide.

In announcing the 63-year-old Bannon's departure, the White House did not specify whether he had resigned or -- as was widely reported -- was forced out.

"White House Chief of Staff John Kelly and Steve Bannon have mutually agreed today would be Steve's last day," Trump's press secretary Sarah Sanders said in a statement. "We are grateful for his service and wish him the best."

From Goldman to Breitbart to West Wing

Labelled a white supremacist by his critics, the one-time Goldman Sachs investment banker and former head of ultra conservative outlet Breitbart News joined the Trump campaign less than three months before the November 2016 vote and was credited with playing a major role in the real estate magnate's upset victory over Hillary Clinton.

Having privately boasted about handpicking Trump's cabinet, he went on to become the nucleus of one of several competing power centers in what has been a chaotic West Wing.

But Bannon reportedly fell into disfavor for allegedly leaking stories about White House colleagues who he felt did not sufficiently adhere to his populist agenda.

The president's new chief of staff, Kelly, had reportedly warned he would not tolerate what he saw as Bannon's behind the scenes maneuvering.

Bannon had earlier this year lost his coveted place on the National Security Council, which decides issues of war and peace.

And the president -- said to have grown increasingly irritated by Bannon's high profile -- was reportedly furious about an interview his aide gave this week to a left-leaning publication in which he contradicted the Republican billionaire's position on North Korea.

The New York Times quoted a person close to Bannon as insisting the parting of ways was his own idea, and that he had submitted his resignation on August 7, to be announced at the start of this week -- but that it was delayed by the chaotic developments of recent days.

Bannon's departure came as the US president faced a firestorm of criticism over his failure to unequivocally rebuke the white supremacists who rallied in Charlottesville.

That unrest ended when a suspected Nazi sympathizer drove his car into a crowd of counter-protesters, killing 32-year-old Heather Heyer.

Trump who rose to political prominence by casting doubt on whether Barack Obama, America's first black president, was born in the United States, did condemn neo-Nazis and the Ku Klux Klan on several occasions this week, but many across the political spectrum say he did not go far enough.

The honeymoon is definitely over. #Trump, the businessman president, begins to lose CEO support https://t.co/FTPMIleNsE pic.twitter.com/ltEc7aMdBc

— AFP news agency (@AFP) August 16, 2017

Related Article:

Trump isolated after Charlottesville remarks

Trump's comms director Scaramucci out as new chief of staff takes reins

Yahoo - AFP, July 31, 2017

Anthony Scaramucci, named Donald Trump's new White House communications
director 10 days ago, did not last long (AFP Photo/JIM WATSON)

Washington (AFP) - White House communications director Anthony Scaramucci was forced out Monday after barely 10 days in his post, as Donald Trump's new chief of staff asserted his authority on his first day in office.

John Kelly, who had served as Trump's secretary of homeland security for six months, has been brought in as chief of staff to bring order and discipline to a White House beset by scandal, infighting, low approval ratings and legislative defeats.

After an Oval Office swearing-in ceremony, Trump confidently predicted the 67-year-old combat veteran -- one of a group Trump has dubbed "my generals" -- will do a "spectacular job."

And Kelly got straight to work, as reports emerged that Trump dismissed Scaramucci -- the fast-talking New York financier -- at Kelly's request.

"Mr Scaramucci felt it was best to give Chief of Staff John Kelly a clean slate and the ability to build his own team. We wish him all the best," the White House said in a terse statement.

Scaramucci had courted controversy with an expletive-laden attack on his colleagues -- then chief of staff Reince Priebus, who was forced out last week, and chief White House strategist Steve Bannon.

'Record-shattering'

Kelly inherits the day-to-day running of a White House staff that -- far from marching in lockstep -- look like a regiment pinned down by heavy fire, getting conflicting orders from their commander and squabbling over the way forward.

US President Donald Trump (R) shakes hands with newly sworn-in White House 

Chief of Staff John Kelly (AFP Photo/JIM WATSON)

"I predict that General Kelly will go down as, in terms of the position of chief of staff, one of the great(est) ever," Trump said.

"What he has done in terms of homeland security is record-shattering, if you look at the border, if you look at the tremendous results we've had."

Kelly replaces Priebus, a Republican Party operative who was ousted last week after the spectacular failure of Trump's bid to repeal Obamacare and as his ugly feud with Scaramucci spilled into the open.

The chief of staff is the highest ranking White House employee -- a chief operating officer who organizes staff, manages the president's schedule and decides who gets access to him and when.

That is no small mission in Trump's White House, where a rotating cast of family and staff with unclear roles and opaque job titles walk into the Oval Office seemingly at will.

Many question whether anyone can rein in the mercurial, Twitter-happy Trump, who has appeared to encourage the infighting among various factions vying for influence in his administration.

No chaos

Trump -- ever determined to project success -- insisted Monday that there was no "chaos" at the White House, which was instead running as a finely tuned machine.

"I think we’re doing incredibly well. The economy is doing incredibly well, and many other things. So we're starting from a really good base," he told a cabinet meeting.

"We have the highest stock market in history," Trump said, adding that US economic growth in the last quarter stood at 2.6 percent and was approaching the three percent target he once set.

Attorney General Jeff Sessions, in a red tie, has been one of President Donald 

Trump's many targets in recent weeks (AFP Photo/JIM WATSON)

"Unemployment is the lowest it's been in 17 years. Business enthusiasm is about as high as they've ever seen it."

But aside from the economy, there has been little reason for Trump to cheer.

Under pressure from a widening probe into his campaign's contacts with Russia last year, Trump last week attacked his own attorney general Jeff Sessions for disloyalty, alarming his conservative base, before turning on Priebus.

In another tweet Monday, Trump hinted that Congress's own health insurance plan should be replaced for its failure to repeal Obamacare, his predecessor's signature reform of the US health care system.

"If Obamacare is hurting people & it is, why shouldn't it hurt the insurance companies and why should Congress not be paying what public pays?"

Since taking office six months ago, Trump's tumultuous administration has seen a succession of negative headlines and brewing scandals.

Fueling the fire, the billionaire Republican has parted with a number of top officials including his national security advisor, deputy national security advisor and FBI director, among others -- an unparalleled turnover for such a young presidency.

On the global stage, Trump faces the stark challenge of a North Korea that could be on the verge of marrying nuclear and ballistic missile technology.

"We'll handle North Korea. We're going to be able to handle them. It will be handled. We handle everything. Thank you very much," Trump said.

Kelly's arrival is likely to signal a renewed focus on border security and immigration.

"As the coils of the Russia investigation grow tighter, as his failures in Congress mount, Trump reaches for what he knows -—demagoguery of the rawest sort," predicted Eliot Cohen, a former State Department official once tipped to join the Trump White House.

"Trump will remain Trump, and the various denizens of the White House are unlikely to treat Kelly with much more deference than they treat one another," he wrote in the Atlantic magazine.