Socialist Worker

Goldman Sachs' dealings with Colonel Gaddafi

Issue No. 2256

Investment bank Goldman Sachs’ murky dealings with Libyan dictator Colonel Gaddafi are gradually emerging.

The Libyan Investment Authority had given Goldman Sachs £790 million to make complicated currency bets and other derivative investments in the US financial markets.

But the bankers managed to lose 98 percent of the Libyan money when those bets went spectacularly wrong.

When the Libyans asked what had happened to the money, the investment banking giant made an offer of a £31 million payment.

The recipient of the cash would have been the son-in-law of the boss of Libya’s state oil company.

Goldman Sachs is being investigated in the US over bribery allegations.

The company also gave a paid internship to a top Libyan official’s relative while the deal was done.

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Article information

Tue 14 Jun 2011, 18:17 BST
Issue No. 2256
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