Lawyers for Libya's sovereign wealth fund claim that Goldman Sachs exploited inexperienced staff members to close inappropriate deals which cost the fund a humongous $1.2 billion.
|The accusation was made at London's High Court at a high profile trial launched by the fund against the prestigious U.S. investment bank. The allegations of shady dealings include the use of prostitutes back in 2008. Goldman Sachs denies that it did anything wrong and that the losses to the Libyan Investment Authority (LIA) sovereign fund were simply due to the 2008 financial crash and had nothing to do with the relationship of the LIA to Goldman Sachs.|
Between January and June 2008, the LIA paid $1.3 billion for options on a basket of currencies and options on six stocks (Citigroup Inc., UniCredit SpA, Banco Santander, Allianz, Électricité de France and Eni SpA) via Goldman Sachs. By February 2010, the value of these investments was 0.025 billion - a 98% loss.