Goldman Sachs Group Inc. is being sued by Libya's sovereign-wealth fund, according to a spokesman for the fund.
The suit was filed Tuesday at London'sHigh Court, but details of the claim couldn't be determined. A Goldman Sachs spokeswoman declined to comment. "
Goldman Sachs abused the relationship of trust and confidence with...the sovereign wealth fund of the Libyan people," said the spokesman for the fund, the Libyan Investment Authority.
He added that the transactions in dispute, from early 2008, were in excess of $1 billion and "led to significant losses."
The Wall Street Journal reported in May 2011 that the Libyan Investment Authority--controlled by Col. Moammar Gadhafi- -had lost 98% of a $1.3 billion bet on currency movements and other complex trades done with Goldman in 2008.
The losses were devastating to the Libyan sovereign-wealth fund, and some of its executives demanded that Goldman find a way to recoup the fund's losses.
Goldman and Libyan fund officials went back and forth for months over several plans to make Libya whole on its investment, the Journal has reported.
Many of the ideas Goldman presented involved structured-finance instruments or investment funds that would have required the Libyan fund to invest even more money through Goldman Sachs.
The exposure of Libya's dealings with Goldman led the U.S. Securities and Exchange Commission to home in on the activities of the securities firm.
nasdaq.com
The suit was filed Tuesday at London'sHigh Court, but details of the claim couldn't be determined. A Goldman Sachs spokeswoman declined to comment. "
Goldman Sachs abused the relationship of trust and confidence with...the sovereign wealth fund of the Libyan people," said the spokesman for the fund, the Libyan Investment Authority.
He added that the transactions in dispute, from early 2008, were in excess of $1 billion and "led to significant losses."
The Wall Street Journal reported in May 2011 that the Libyan Investment Authority--controlled by Col. Moammar Gadhafi- -had lost 98% of a $1.3 billion bet on currency movements and other complex trades done with Goldman in 2008.
The losses were devastating to the Libyan sovereign-wealth fund, and some of its executives demanded that Goldman find a way to recoup the fund's losses.
Goldman and Libyan fund officials went back and forth for months over several plans to make Libya whole on its investment, the Journal has reported.
Many of the ideas Goldman presented involved structured-finance instruments or investment funds that would have required the Libyan fund to invest even more money through Goldman Sachs.
The exposure of Libya's dealings with Goldman led the U.S. Securities and Exchange Commission to home in on the activities of the securities firm.
nasdaq.com
No comments:
Post a Comment