Wednesday, June 1, 2011

Goldman Sachs Reportedly Offered Qaddafi Big Chunk of Company After Investment Losses

Libya thought it was placing a sure bet when it gave $1.3 billion to Goldman Sachs to invest in currencies and other trades, according to The Wall Street Journal.

What it got: a 98 percent loss, followed by an offer of a huge chunk of Goldman shares.

The newspaper reports that Goldman offered Libyan officials several options for earning back the country's money -- including taking a piece of the global financial firm -- after Goldman lost its investments in bank trades and currency baskets.

The talks eventually amounted to naught, the newspaper reports, and nothing was done about the massive losses in 2008, right as the global economy took a fierce slide. (read more)