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A Look at Nine Goldman Trades That Lost Libya $1 Billion in One Year

Posted on February 1st, 2014 at 9:59 by John Sinteur in category: News -- Write a comment


Trading under the influence of Goldman Sachs can be dangerous and costly, Libya’s sovereign-investment fund alleged in a lawsuit filed with London’s High Court last week.

Working with advisers from Goldman Sachs, the fund, the Libyan Investment Authority, claims that the bank pushed the fund into $1 billion in “highly speculative gambles” in 2008 that became essentially worthless within less than a year.

Goldman Sachs, however, walked away with roughly $350 million in profits from executing these trades on behalf of the fund, the lawsuit says.

In response to the lawsuit, Goldman Sachs told the WSJ: “We think the claims are without merit, and we will defend them vigorously.”

  1. They have a $350 million defense fund. Would be very surprised if that lawsuit gets anywhere but it might give new potential Goldman Sachs investors pause and I suppose that’s a good thing. Buyer beware.

    One look at my modest financials would tell you I’m no money expert but what exactly makes a “sovereign-investment fund” sovereign? What’s sovereign about money, particularly money you willingly hand over to someone else for the sole purpose of making more money?

  2. A sovereign wealth fund is an investment fund which is owned and controlled by a government, as opposed to by a company or individuals. Asset-rich countries, such as China and many of the Gulf States, own a considerable proportion of the world through them. The saying “Where there is great wealth so also is there evidence of great crime” comes to mind.

  3. Ironic. Mr. Ghadafi, who spent most of his regime ranting about Jewish control of world finance etc., invested his money with a company founded by Jewish persons.

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