Goldman Sachs lost nearly $1.3 billion that it received for investments from Libya’s sovereign-wealth fund, the Libyan Investment Authority (LIA), in 2008, The Wall Street Journal reports. But by early 2009, Goldman’s investments lost 98% of their value and the lender offered Libya the chance to become one of its biggest shareholders.
Goldman had put forward many proposals to recover the losses, including allowing Libya to get $5 billion in preferred Goldman shares in exchange for investing $3.7 billion in the firm. LIA paid $1.3 billion for options on a basket of currencies and on six stocks, Citigroup, UniCredit, Banco Santander, Allianz, Électricité de France and Eni.
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