Banks Sold Investments for Billions to Libya Fund, FT Reports

The Libyan Investment Authority, the North African country’s sovereign wealth fund, lost billions of dollars on financial products sold to it by western banks, the Financial Times reported, citing a Libyan government document posted on the website of U.K. advocacy group Global Witness.

The banks that did business with the Libyan regime of President Muammar Qaddafi included Societe Generale (GLE) SA, JPMorgan Chase & Co., Credit Suisse Group AG and BNP Paribas (BNP) SA, the newspaper said.

SocGen said it couldn’t comment on individual customers and transactions; the other three banks didn’t respond to questions about the document, the FT said.

The Libyan fund also had $300 million invested with Och- Ziff Capital Management Group LLC, a U.S. hedge-fund manager, the newspaper said, adding that the firm declined to comment.

To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.