Libya’s Sovereign Fund Cooperating With SEC on Goldman Probe
The Libyan Investment Authority, the nation’s sovereign wealth fund, is cooperating with the U.S. Securities and Exchange Commission on its probe into the fund’s dealings with Goldman Sachs Group Inc. (GS)
The LIA is also considering legal action against Goldman Sachs, the fifth-biggest U.S. bank by assets, to recover losses on its investments, the fund said in an e-mailed statement yesterday. The SEC has been investigating possible violations of U.S. anti-corruption laws by Goldman Sachs for more than a year. Reuters reported the LIA’s cooperation yesterday.
Under Muammar Qaddafi, the sovereign wealth fund had assets of about $60 billion and turned to financial firms including Goldman Sachs to achieve its goal of 8 percent annual returns. The bets didn’t always work out, leading to losses of $1.75 billion on structured products bought in 2007 and 2008, $900 million of which was with Goldman Sachs, the fund’s former chairman said in June.
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