Goldman Sachs sues Malaysia over 1MDB settlement

KUALALAMPUR, Oct 12 (Reuters): Goldman Sachs Group sued Malaysia in a UK court on Wednesday, as tensions escalate over a settlement agreement on the bank's role in the multi-billion dollar 1MDB corruption scandal.

"Today, we filed for arbitration against the Government of Malaysia for violating its obligations to appropriately credit assets against the guarantee provided by Goldman Sachs in our settlement agreement and to recover other assets," a spokesperson for the bank told Reuters.

The arbitration has been filed with the London Court of International Arbitration, a source told Reuters.