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Was the last Crash all about and only about Gaddafi?

Discussion in 'Economics, Business, and Taxes' started by Queen Titania, Jul 3, 2015.

  1. Queen Titania

    Queen Titania Senator

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    Could this be possible?

    This is a 2011 article --- first one that came up in a google search --

    ''A bitter rift has opened up between the world's most powerful bank and one of its most fearsome dictators after Goldman Sachs invested $1.3bn (£790m) of Colonel Gaddafi's money – and lost virtually all of it.

    According to an investigation by the Wall Street Journal, Goldman offered to make Gaddafi one of its biggest investors as compensation for losing 98% of the money the Wall Street firm invested on behalf of the Libyan Investment Authority (LIA). This left the $53bn Gaddifi-controlled sovereign wealth fund, which elsewhere has stakes in companies such as Financial Times-owner Pearson and BP, with just $25.1m of the money it entrusted to Goldman.

    The fund, which has soared in value in recent years on the back of Libya's growing oil wealth, was frozen by the EU and United Nations in February because of its close links with the Gaddafi family.

    Under the terms of the proposed compensation deal, which was never consummated, LIA would have received $5bn worth of preferred Goldman shares, in return for a $3.7bn investment, allowing the fund to recoup its $1.3bn of losses.

    Goldman lost the money – which it invested between January and June of 2008 in a range of options to buy currencies and shares at a future date for a stipulated price – after the collapse of Lehman Brothers panicked the markets and caused the underlying securities to crash in value.

    The investments, in a basket of currencies and the shares of six energy, utility and banking companies including Citigroup, amounted to a bet on a rise in the underlying value of the assets. However, since their values plummeted they became virtually worthless.

    In one of the most extraordinary examples of the fallout from the financial crisis Mustafa Zarti, then LIA's deputy chairman, summoned Goldman's North African chief, Youssef Kabbaj and some colleagues, to a meeting in July 2008 to discuss the losses. It is understood that Zarti was so angry he behaved "like a raging bull", cursing and threatening the Goldman staff to such an extent there are rumours the bank arranged for security to protect its staff until they left Libya the next day. The LIA went on to demand restitution and issued vague threats of legal action, the Wall Street Journal reported.
    As relations between Goldman and Gaddafi became increasingly strained, the Wall Street firm made a total of three separate compensation offers to invest in the group on attractive terms between May and June of 2009, including the deal involving preferred shares. Another proposal would have given the LIA unsecured debt in Goldman, promising a stream of payments that would eventually have repaid the losses.

    Over the next two years, discussions on these and a series of other compensation proposals were discussed by LIA and top-level Goldman staff – chairman Lloyd Blankfein, finance head David Viniar and European chief Michael Sherwood. However, they were unable to agree a solution and talks are thought to have eventually petered out last summer.

    The other companies in which Goldman invested on behalf of the LIA were Italian bank UniCredit, Spanish bank Santander, German insurance group Allianz, the energy company Electricite de France and Eni, the Italian energy company.

    LIA was set up in Tripoli in 2007. As of June last year, its other investments included $293m in 10 HSBC cash accounts, $110m invested in a private equity fund managed by Royal Bank of Scotland and $171m with JP Morgan Chase. About $19bn of LIA's deposits were held by Libyan and Middle Eastern banks, including the Central Bank of Libya, the Arab Banking Corporation and the British Arab Commercial Bank. Some $5.2bn of the fund was invested directly in shares and $3.4bn in bonds. Other company stakes included General Electric, Vivendi and Deutsche Telekom.


    http://www.theguardian.com/business/2011/may/31/goldman-sachs-libya-investment
     
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    Last edited: Jul 3, 2015
  2. Queen Titania

    Queen Titania Senator

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    OK lets get this right ---

    1 Goldman Sachs invested all of Gaddafis money

    2 Of which 98% is lost because Lehman Bros was inextricably allowed to collapse

    3 Goldman tried to make deals which would pay Gaddafi back which were not going too well

    4 Libya is destroyed and Gaddafi is murdered


    Was that it? Was that what all this shit is all about?
     
  3. georgephillip

    georgephillip Governor

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    Two years later NATO brought peace of mind to those doing God's Work in The Free World? If our global political choice is limited to dictators, sham democracies, or private central bankers, just who, exactly, is free?
     
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  4. Queen Titania

    Queen Titania Senator

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    Exactly. We are not getting better we are not changing at all, they are just getting better at pulling the wool over our eyes ---- or rather they are always one step ahead of us like any good hunter.
     
  5. georgephillip

    georgephillip Governor

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    Do you think the internet has the power to change that history?
     
  6. Queen Titania

    Queen Titania Senator

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    Yes and No --- It could if a clear and reasoned way forward were laid out, a clear course.

    Based on Steiners three fold commonwealth for eg

    But at the moment it is still and only about protesting against 'The Rulers' - that doesn't scare them, we have always protested and when we look as if we might turn on them they always send us off to War to turn on some poor innocents instead or as now against one another ---- and this new ploy of filling our countries with a poverty stricken, uneducated, cheap work force from the third world which the Banks are keeping in Poverty but for the chosen few Oligarchs/Barons.

    The World hates the Bankers for eg but our Govs keep them in situ because and only because the populous know no other way and fears the collapse of them, thinking they are our rock ---- well yer the rock around our necks --- even if the call went round to nationalize them who would we trust to do that? Your Gov? Noooo My Gov? Noooo

    Perhaps if America opened it's eyes? I dunno --- because in the end we look out for ours, our families, and even if Americans admitted that all these War were for their financial stability only, would they say NO stop? I dunno
     
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