A former Goldman Sachs salesman used a "misleading" presentation to encourage Libya's sovereign wealth fund to sign a deal exposing them to $500 million of Citigroup stock right before the 2008 financial crisis, a London court heard on Friday.
The LIA was set up in 2006 to invest Libya's oil wealth internationally. The organisation claims Goldman Sachs took advantage of the low level of financial literacy of LIA staff, and suggested large and risky trades that led to heavy losses for the Libyans and large margins for the bank.
Lawyers for Goldman Sachs, responding to the claims earlier, said that the LIA was suffering from "buyers' remorse," and that the bank wasn't responsible for the losses, which were caused by the 2008 credit crunch and financial crisis.
Philip Edey QC, the LIA's lawyer, said the LIA thought they would end up owning underlying shares in Citigroup and receive dividends to pay off a loan from Goldman Sachs to help finance the deal. Instead, they got a structured derivative based on Citigroup shares...
http://www.businessinsider.com/goldman-sachs-vella-derivatives-testimony-2016-7
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