Goldman Sachs agreed to pay $150 million in penalties as part of a Consent Order entered into with the New York State Department of Financial Services to resolve an investigation concerning Goldman's failure to detect or adequately address red flags suggesting wrongdoing in connection with bond transactions for 1malaysia Development Berhad (1MDB), failures that exposed its affiliate, Goldman Sachs Bank USA, to undue financial and reputational risk and caused unsafe and unsound conduct and reporting deficiencies.