Goldman Made $350 Million on ‘Worthless’ Trades, Libya Says - Bloomberg

Goldman Made $350 Million on ‘Worthless’ Trades, Libya Says - Bloomberg:



"Goldman Sachs Group Inc. (GS) made about $350 million on “worthless” derivatives trades after exerting “undue influence” on managers of the Libyan Investment Authority, according to the sovereign-wealth fund, the second-largest in Africa.



LIA sued Goldman Sachs on Jan. 21 in London over investments of about $1 billion made in 2008. The fund said in court documents released today that its executives, who were given gifts of chocolate and after-shave by the bank, never understood the transactions.



“The unique circumstances allowed Goldman Sachs to take advantage of the LIA’s extremely limited financial and legal experience to deliberately exploit its position of influence and to take advantage in a way that generated colossal losses for the LIA but substantial profits for Goldman Sachs,” LIA Chairman AbdulMagid Breish said in an e-mailed statement."



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