Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

Goldman Offered to Let Libya Become Major Shareholder After Losses Goldman Offered to Let Libya Become Major Shareholder After Losses

NEXT :
This ad will end in seconds
 
Close X

Not a member or subscriber? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

FOREIGN AFFAIRS

Goldman Offered to Let Libya Become Major Shareholder After Losses

+

(Chris Hondros/Getty Images)

After losing almost all of a $1.3 billion Libyan investment, the Goldman Sachs Group offered to let the nation become one of its biggest shareholders in 2009, the Wall Street Journal reports. The negotiations during which the offer was allegedly made eventually fell apart with no resolution.

The offer came on the heels of a 98% loss in value of a $1.3 billion investment by Libya’s sovereign-wealth fund, controlled by Colonel Moammar Gaddafi, which Goldman sank into a currency bet and other trades, according to The Journal. The investment was badly hit by the credit crisis that fall, tumbling to just $25.1 million by February 2010. Goldman offered to let the country invest $3.7 billion in the firm and offered up three proposals in which Libya would get a stake in Goldman, The Journal reports, citing documents prepared by Goldman.

 

Libya’s investment in Goldman came four years after sanctions prohibiting American companies from doing business with or investing in Libya were lifted. Talks between Goldman and the Libyan Investment Authority broke down, according to the Wall Street Journal, and Libya’s losses were never recouped. This year, the U.S. froze about $37 billion in Libyan assets.

Want the news first every morning? Sign up for National Journal’s Need-to-Know MemoShort items to prepare you for the day.

Comments
comments powered by Disqus
 
MORE NATIONAL JOURNAL