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Goldman probed by NY regulator

The Department of Financial Services is requesting information pertaining to the bank's Malaysian 1MDB dealings.

Lloyd Blankfein, chairman and CEO of Goldman Sachs.
Katie Kramer | CNBC
Lloyd Blankfein, chairman and CEO of Goldman Sachs.

Goldman Sachs' headaches stemming from its work on a Malaysian state wealth fund are growing.

The bank is under investigation by the New York Department of Financial Services, according to a source. The department sent a letter to Goldman requesting information regarding its work on Malaysian fund 1MDB and whether its dealings comply with New York state banking regulations. The inquiry is not a subpoena, but instead an information-gathering effort.

The department is pushing for the bank to reply by Wednesday.

Both Goldman and the DFS declined to comment when contacted by CNBC.

The news was reported earlier Friday by Bloomberg.

For Goldman, its work on the Malaysian fund has led a troupe of government investigators to its door.

Last year, the FBI and Justice Department both sought to probe the bank's work on the fund, which ultimately helped it raise more than $6 billion via bond sales. Some of those funds went missing, only to reappear in the Malaysian Prime Minister Najib Razak's bank account, according to reports. The prime minister has repeatedly denied wrongdoing.

— CNBC's Jim Forkin contributed to this report.