• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 41 mins Shale Oil will it self destruct?
  • 14 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 4 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 10 hours Iran Captures British Tanker sailing through Straits of Hormuz
  • 23 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 11 hours Renewables provided only about 4% of total global energy needs in 2018
  • 1 day Today in Energy
  • 5 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 2 days LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 14 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Mexico Confirms Major Tax Cut For PEMEX

Mexico Confirms Major Tax Cut For PEMEX

Mexican President Lopez Obrador presented…

Russia’s Oil Output Rebounds From Three-Year-Low

Russia’s Oil Output Rebounds From Three-Year-Low

Russia’s oil production in the…

Libya Sues Goldman Sachs Over US $1.2B In Lost Investments

Libya Wealth Fund

The Libyan Investment Authority (LIA) and Goldman Sachs began a $1.2 billion court battle this week over claims that Goldman Sachs exploited Libya’s Sovereign wealth fund by encouraging it to make risky and worthless investments.

The LIA claims that the trades in question took place under what it calls “undue influence”. In all, the LIA wants the return of some $1.2 billion from nine trades in 2008.

Libya created the LIA in 2006 in order to invest funds from its oil reserves and to become a part of the international financial system. The anti-corruption group Global Witness released an internal LIA management report in 2011 showing that the fund has suffered heavy losses, including a 98.5 percent drop in the funds equity and currency derivatives portfolio.

As the trial got underway Monday, lawyers for the LIA stated that Goldman Sachs took advantage of the naiveté of the LIA, causing the loss. Lawyers for the LIA produced an email from 2008 calling the LIA very unsophisticated. Another note from the bank’s vice president spoke of delivering a pitch on structured leverage loans to a person living with his camels in the middle of the desert.

Related: Iran And India Risk Regional Backlash Following Latest Investment Deal

Goldman is disputing the claim, calling it “both unusual and ambitious”. They claim that the bank chose the underlying stocks via its own research. Lawyers for Goldman Sachs claim that the LIA was instead affected by the credit crisis and the impact it had on the global market, rather than by any wrongdoing on the part of Goldman Sachs.

The bank is not the only institution involved in a suit by the LIA. The Authority is also suing French bank Societe Generale for approximately $2.1 billion in relation to trades between 2007 and 2009.

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • dana on June 13 2016 said:
    Of course the fund failed. Goldman makes money no matter what the funds do. The house always wins don't you know.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play