Libyan Investment Authority sues Goldman Sachs

The Libyan Investment Authority (LIA), the nation’s sovereign wealth fund, is sueing Goldman Sachs in London over investments worth more than $1 billion.

The company lost about $1.75 billion betting on structured products in 2007 and 2008, about $900 million of which was with Goldman Sachs, its former chairman said in June 2012.

The U.S. Securities and Exchange Commission is probing Goldman Sachs’ dealings with the LIA for possible violations of American anti-corruption laws. The fund has said it is cooperating.

Mohsen Derregia, the fund’s former chairman, said in March it had demanded an explanation from Societe Generale on how derivative contracts lost about $1 billion.

Losses between 15% and 16% are considered acceptable, but our shares devalued by up to 80%,” Mr. Derregia said in an interview. “We want to know what happened.

(Sources: Bloomberg, WSJ)

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