with libya wealth fund opens in uk
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Goldman Sachs legal battle

With Libya wealth fund opens in UK

Arab Today, arab today

Arab Today, arab today With Libya wealth fund opens in UK

Goldman Sachs headquarters in New York City
London - Arab Today

Goldman Sachs exploited inexperienced staff at Libya's sovereign wealth fund to clinch "inappropriate" deals which cost the fund $1.2 billion (1.5 billion euros), lawyers claimed at London's High Court Monday.

The high-profile trial promises a rare glimpse into the workings of the US investment bank and features allegations of the use of prostitutes and of shady dealings in 2008.

The Wall Street giant denies any wrongdoing, saying the Libyan Investment Authority (LIA) lost money due to the 2008 financial crash, not their close but controversial working relationship.

On the opening day of the hearing into LIA's claim, its lawyer Roger Masefield read out an internal message sent by Goldman Sachs partner Driss Ben-Brahim.

Ben-Brahim said the nascent fund, set up by Moamer Kadhafi's regime in 2006 to capitalise on Libya's oil wealth, was "very unsophisticated -- and anyone could 'rape them'," the court heard.

The LIA alleges that Goldman Sachs employee Youssef Kabbaj embedded himself in the fund, gained the trust of "young and impressionable staff" and sold it complex products that ended up losing the LIA over $1.2 billion.

These actions earned the bank over $220 million in profits, LIA lawyers claim.

Kabbaj built an especially close relationship with Haitem Zarti, younger brother of fund chairman Mustafa Zarti, securing him a coveted Goldman internship, Masefield told Judge Vivien Rose.

Kabbaj took Haitem Zarti on holidays to Morocco and to a conference in Dubai.

Here, "it appears from Goldman Sachs' disclosure that, while there, Mr Kabbaj arranged for two prostitutes to spend the evening with them at a cost of $600," LIA lawyers claimed.

It is then alleged that the bank rushed through a basket of deals of "staggering size" in 2008 without the LIA conducting due diligence tests or seeking independent advice.

- Abuse of trust? -

The bank had earlier sold the LIA complex derivative products tied to the share prices of Citigroup bank and French energy firm EDF.

The LIA, one of the world's wealthiest investors, claims it was tricked into believing it had gained strategic stakes in the companies.

But it says in reality it only held risky bets which became worthless when stock markets plunged following the collapse of Lehman Brothers bank in September 2008, wiping out the $1.2 billion outlay.

The situation became clear to Mustafa Zarti during a 2008 meeting with the bank, whereupon he threw Kabbaj out of the meeting, the court heard.

He later called Goldman Sachs a "bank of Mafiosi" and claimed it had "abused his trust", selling him risky products inappropriate for a state fund.

The claimant's legal team cited as evidence of their opinion of their financial knowledge an email sent by a Goldman Sachs vice-president criticising a presentation given to the LIA.

It said: "You just delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels."

Goldman Sachs denies it exerted undue influence on the fund or abused its trust, arguing that the deals involved standard products common in the financial world.

In its submission to the court, it said: "The credit crisis and its impact on global markets turned out to be far more prolonged than the LIA and the great majority of market participants had anticipated.

"The LIA was the victim of an unforeseen financial depression, not of any wrongdoing."

Goldman partners including Andrea Vella, co-head of investment banking in Asia, are expected to give evidence in the eight week hearing, in which the LIA is seeking to recoup its losses.

Source: AFP

arabstoday
arabstoday

GMT 02:03 2018 Saturday ,20 January

UK retail sales slide in December

GMT 05:20 2018 Tuesday ,16 January

UK construction firm Carillion collapses

GMT 09:52 2018 Monday ,15 January

EU more dependent on Russian gas

GMT 05:30 2018 Friday ,12 January

Brexit could cost nearly 500,000 UK jobs

GMT 09:16 2018 Monday ,01 January

Chinese ban on ivory sales goes
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

with libya wealth fund opens in uk with libya wealth fund opens in uk

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

with libya wealth fund opens in uk with libya wealth fund opens in uk

 



GMT 12:48 2016 Sunday ,27 November

Cilic, Dodig push Croatia to brink of Davis Cup

GMT 05:24 2017 Thursday ,28 December

Erdogan says 'terrorist' Assad cannot be part of Syria

GMT 12:59 2016 Saturday ,05 November

WB welcomes economic reforms in Egypt

GMT 18:40 2016 Saturday ,05 November

Egyptian GDRs in London down

GMT 10:57 2017 Wednesday ,06 December

Peru striker Guerrero has doping ban extended

GMT 17:51 2017 Tuesday ,07 March

Trump Signs New Travel Ban on Six Muslim Countries

GMT 10:30 2017 Wednesday ,06 September

Saudi Information Ministry praises media role during Hajj

GMT 15:29 2017 Tuesday ,24 January

Mind games really do help your brain

GMT 06:55 2015 Thursday ,01 October

Boston Red Sox beat Yankees

GMT 08:17 2017 Monday ,28 August

Bahrain celebrates World Humanitarian Day 2017

GMT 02:07 2017 Tuesday ,28 February

Opposition seeks Russian support at Syria talks
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday