Interesting article in the Financial Times:
Libya case against Goldman shines rare spotlight on powerful bank
Mr Baruni advised the LIA (Libyan Investment Authority) not to invest in two Goldman funds but he resigned after his advice fell on deaf ears. An email he sent at the time read: “Goldman have not been honest in their practices and disclosure.”Ali Baruni, a financial consultant to the LIA, told the High Court that he felt “almost under attack” at one Goldman meeting as a succession of different products and Goldman teams was “relentlessly” presented to the wealth fund.
In other words, this was a hard sale, and the LIA staff were lavishly entertained.
Was it all ethical and within the law? The court case will decide about that.
The result of the investment:
The LIA claims Goldman earned more than $200m in profits for itself from the nine disputed trades whilst the LIA lost its entire $1.2bn investment.
Well, at least the Libyans are fighting back and trying to claw back some of their losses.