Skip to main content

Goldman: These Libyans Not As Naïve And Sweetly Innocent As They Say

He said/he said.
  • Author:
  • Updated:
By U.S. Navy photo by Mass Communication Specialist 2nd Class Jesse B. Awalt/Released (, VIRIN 090202-N-0506A-324) [Public domain], via Wikimedia Commons

Are you calling me stupid? Wikimedia Commons

Goldman Sachs has been hearing a lot of things from the Libyan Investment Authority in a London courtroom recently. That the bank pounced on the sovereign wealth fund like a wounded animal after the U.S. lifted sanctions on Libya. That its bankers got a better deal for the hookers they arranged for LIA officials than for the LIA itself. That they took advantage of the “sea of confusion” at the LIA and its “financially naïve and unsophisticated” staff.

Goldman has heard it all, and has a counterargument: YOU KNEW EXACTLY WHAT YOU WERE DOING.

“The LIA fully understood the disputed trades and obtained exactly the exposure which it wanted,” Mr. Vella said in his witness statement. At the time of the Libyan transactions, Mr. Vella was a London-based leader of Goldman’s growth-markets business. “The underlying shares did not perform as it had anticipated.” The LIA has said its officials had little understanding of finance and that the fund managers believed they were buying actual shares in companies including Citigroup Inc. through the trades. The cash-based transactions were tied to movements in the share prices of companies including Citigroup but didn’t confer ownership of the shares. Mr. Vella said that LIA officials including Mohammed Layas, then chief of the fund, had experience in finance and understood markets. Mr. Vella said that Libyan officials including Mr. Layas, who died last year, understood the difference between purchasing shares and equity derivatives.

Goldman Sachs Executive Says Libya Understood Derivatives [WSJ]



Prostitute Goldman Sachs Banker Procured For Libyan Client Drove A Hard Bargain

When this is all over she could get a job on Goldman's M&A team.

By ACEI Cheung (4Cheungs) from Flickr (Flickr) [CC BY-SA 2.0], via Wikimedia Commons

At Least One Goldman Exec Knew That The Milk It Squeezed Out Of Libya Would Curdle

His verb choice is almost as damning as his email history.


Libya To Goldman Sachs: We're Naive, But You're Mean

Camels and hookers and billion dollar trading losses, oh my.


Goldman Ran Its Own Stress Tests On Its Mortgages And They Did Great

The Elect have their own special math and don't know what the Fed is talking about.

Not a place Goldman is particularly interested in visiting. Two hundred percent. [CC BY-SA 2.5], from Wikimedia Commons

Malaysia Is Not Buying What Goldman’s Selling This Time

$6.5 billion in bond deals? Sure. This cockamamie story about how you didn’t know people were stealing almost half of it? No.