Goldman Sachs Countersues Over Gadaffi-Era Rip-off Charges In Libya

By Ann Brown Published: September 21, 2014, 9:00 am

From The Independent

The high profile legal row over whether Goldman Sachs exploited naïve Colonel Gadaffi-era staff at Libya’s sovereign wealth fund has erupted as the bank countersued, claiming the false allegations could damage its good reputation.

The new, post revolution regime at the Libyan Investment Authority claims Goldman charged the fund more than $1bn for several complex derivative investments running up to the Lehman Brothers crisis. The investments subsequently turned out to be practically worthless. The LIA alleges Goldman made a $350m profit on the transactions.

It has argued that Goldman abused the inexperience of the Libyan staff and coerced them into giving the bank the money with inducements including luxury trips to Morocco, gifts and an internship to the brother of a key employee.

 

Read more at The Independent

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