Ex GS banker here. I worked with Tim at GS, he is actually a super nice guy. Asia is full of really bad deals that should never of got done, this is just one of many - the fee level GS made from these issuances has been known by the street and media for years (at GS there was awkward celebration around how much money GS made - "wow, this is kinda a lot of money"). Only blowing up now given the political context. Every other bank would of done these deals + structure and charged more if they had the chance. Fee size is one issue, use of proceeds and PM gifting himself the funds a separate one.
On the fee size made by GS, it is actually a bit more complicated than the article makes out. GS took risk in taking down the full deal (which is unusual - gs doesnt normally do this), when they went to syndicate it off (sell to investors), investors priced it more aggressively than what GS priced in (ie GS bought the debt for 100, sold it for 140 - made up numbers) - GS expected to make a truck load but was a lot more than expected.
My personal thoughts - if Leissner knew what the PM was up to, he would not of done any of these deals. He is long term greedy, not stupid. He is also a relationship banker, not a technical guy who cares too much getting involved in due diligence (DD) - i know from experience. The credit and industry team doing the DD would be the guys running the models and reconciling what the use of funds are. Any DD issues or red flags get documented and go to the credit committee and many senior bankers prior. That said, once the client has the money for a 'warchest', they normally do whatever they want with it.
Clients and bankers are ripping investors / institutions / other banks and clients all the time in Asia. All those tycoons didn't become tycoons by playing it straight. The deals to watch for is where the Tycoon/investor is a sponsor of a publicly listed vehicle - they use that shit as their personal balance sheet / buying assets off the vehicle below market, selling over priced shit into it (gov't here is the sponsor) - all done "legally" by flexing the exchange listing rules and securities law. There is no governance and transparency in Asia; Singapore is probably the best - but still has work to do. That being said, I have seen many times where GS has stepped away from deals because the deal just smelt bad, and other banks have come in no questions asked.
Working on shitty deals in Asia is why I left the game. My team and i have been personally been booted out of clients offices, board rooms and deals for questioning shit. Never looked back.
tl;dr Tim is not a bad dude. Lots of shitty deals and clients in Asia, its more common than you think.