Libyan Investment Authority Goldman Sachs - Business Insider
The Libyan
Investment Authority, a government-managed sovereign wealth fund, is
suing Goldman Sachs for $1 billion and claims that the bank "took them
for a complete ride," according to a report by the Financial Times.
In the lawsuit, LIA
claims that Goldman exploited the fund and "encouraged" it to pursue 9
extremely risky and ultimately unsuccessful investments worth over $1
billion in 2008, according to the FT's report.
But by 2011, these trades were "worthless."
The LIA claims that Goldman took advantage of the LIA's (allegedly) financially illiterate staff in order to make money, and that Goldman seduced its staff with fancy gifts and — for lack of a more politically correct term — bribes.
The LIA claims that they "completely trusted Goldman" and believed
that its former head of north Africa, Youssef Kabbaj was "their very
close friend."
Apparently, Kabbaj took the LIA staff members on a "lavish trip to
Morocco" that included "heavy drinking and girls." The trip was expensed
entirely on Kabbaj's Goldman corporate credit card.
And there's much more where this came from, including "expensive nights out" in London.
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