And The US Banks Managing The Libyan Sovereign Wealth Fund Were...

Tyler Durden's picture

"Goldman Sachs and HSBC together held $335 million of the Libyan oil fund's assets, while Societe Generale held $1 billion in structured products for the fund, Global Witness said on Thursday." Thank you Reuters for confirming that a crazy conspiracy blog (although with 3MM/mo uniques that may need redefinition) occasionally ends up being proven right. Of course, there is nothing wrong with that. Oh wait, there is. Perhaps it is time to inquire not only into Goldman's alleged perjury (Your honor, St.OMO is not the Discount Window, we swear), but also into the firm's (don't laugh) anti-money laundering "rules" (a topic also discussed here).

From Reuters:

 The campaigning group for development issues said it had obtained a document from 2010 showing the Libyan Investment Authority (LIA) held assets of $53 billion as of June 2010 -- lower than the previous estimate of around $70 billion.

The report gives a rare insight into the working of the secretive LIA, detailing the extent of involvement of Western banks in the state-owned fund whose assets have been frozen since March by the United States, Europe and Japan among others.

Global Witness said HSBC held $293 million across 10 accounts, while Goldman had $43 million in three accounts, denominated in dollars, pounds, Swiss francs, euros and Canadian dollars. Goldman Sachs and HSBC both declined comment.

And while we are at it, why not investigate the anti-money laundering provisions at JPMorgan, SocGen and Och-Ziff:

Almost $4 billion of the LIA's funds were placed in structured products. Societe Generale managed $1 billion, JP Morgan $171 million and U.S.-based asset manager OCH-ZIFF $329 million.


 The document also showed the LIA owned billions of dollars of shares in blue-chip companies such as BP (BP.L), Deutsche Telekom (DTEGn.DE), General Electric (GE.N) and Vivendi (VIV.PA).

Much of the LIA's assets have been frozen after the United States and Europe imposed financial sanctions in March, following an earlier embargo on money held by leader Mummar Gaddafi and his family.

This means the LIA can't dump its shares of CNBC 49% parent General Electric, whose objective reporting on all matters economic would never raise a question about just whose political and financial interests may be impaired, and lead to reduced advertising revenue, should a slightly different, as in factual, reporting track be established.

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Cleanclog's picture

I wish Goldman would stop doing God's work and just let the markets be heathen driven.

LawsofPhysics's picture

Ditto.  What has not been screwed up by the incompetence and greed of these fuckers.  The funny thing (or maybe not so funny) is that institutional investors keep piling into GS stock (hello california pension funds!).

MarketTruth's picture

To me this proves to not trust bankers and, instead, keep physical gold within your access. Countries that trust their money in foreign banks or have physical gold being held off shore are fools at best, total idiots at worst.

stewie's picture

If an omnipotent entity started a new fund, would you buy into it?  Would you care what it is composed of?  You'd say to yourself "That fund's gotta go up, it's managed by an entity that knows the future".

GS don't know the future, but the do the next best thing, front-run or buy-out everybody.  Check out their trading record, two-thumbs up!  Why would you buy in a company that is virtually assured to make money?  That's just plain wrong, not right, only an idiot/shill would do that, right?







LawsofPhysics's picture

Depends on what people start accepting as "money" doesn't it?

alien-IQ's picture

Anyone surprised by this revelation please put on the dunce cap and sit in the corner for the rest of the day.

JW n FL's picture

I need an esquire to File Suit in Federal Court Against the U.S. Government.. more over the President of the United States of America. Pro Bono in the name of Fight Club!


The Law Suit is for breach of the Constitution for bringing home the U.S. Army and now Training the U.S. Army to operate Against "We the People".


Who wants to get some T.V. face time for themselves and for Tyler here.. we want warm bodies to educate we have to up our visible profile.


I am looking for feedback and ideas to make as big a splash as possible! so if you have something that will help, speak up! even if you think its small! speak up! every little thing matters and helps! SO PLEASE!!! Speak Up!


I_ate_the_crow's picture

Even before the Patriot Act, the government shills were arguing that Posse Comitatus had already been eroded with a number of exceptions.

Now, because of the Patriot Act, it seems like it would be very difficult to convince a judge that a violation of Posse Comitatus has occurred. Not saying it wouldn't be worth it to bring the suit, just trying to prepare you for the difficulty it would entail.

jus_lite_reading's picture

Yet again... ZH proves why it is the best website in the world!!!

gabeh73's picture

According to the IMF, Libya’s Central Bank is 100% state owned. The IMF estimates that the bank has nearly 144 tons of gold in its vaults. It is significant that in the months running up to the UN resolution that allowed the US and its allies to send troops into Libya, Muammar al-Qaddafi was openly advocating the creation of a new currency that would rival the dollar and the euro. In fact, he called upon African and Muslim nations to join an alliance that would make this new currency, the gold dinar, their primary form of money and foreign exchange. They would sell oil and other resources to the US and the rest of the world only for gold dinars.

The US, the other G-8 countries, the World Bank, IMF, BIS, and multinational corporations do not look kindly on leaders who threaten their dominance over world currency markets or who appear to be moving away from the international banking system that favors the corporatocracy. Saddam Hussein had advocated policies similar to those expressed by Qaddafi shortly before the US sent troops into Iraq.

--John Perkins (author of "Confessions of A Economic Hitman")

Bob's picture

Moral: Play for the right terrorists.

IBelieveInMagic's picture

Let us be pragmatic -- the commodity surplus but insufficiently armed countries will have to trade with the populous commodity deficit countries on terms set by the deficit countries -- might is right, plain and simple. The arrangement is the elites in the commodity surplus countries have been given a franchise to manage but if they over step, they have to know they will be thrown out.

gabeh73's picture

People in commodity surplus countries want to trade with anyone who will buy their raw materials. Have you ever been hungry? you just want to do what you need to do to earn money to get in a better place..those people don't want to refrain from selling rich countries commodities just because of our tv shows. They couldn't give a shit about that stuff. That is scare tactics used to justify building up the parasitical military industrial complex.


The "terms" are not set by "deficit countries" as this implies it benefits us upper or lower middle class folks in america...this is collectivist garbage narrative.

The "terms" that the commodity surplus countries are forced to deal in are set by banksters and moneyed interest who have influence over printing press decisions...that is a elite club and 99.9% of americans ain't in it. "deficit countries" is completely different than financial oligarachy. The rhetorical trick of lumping in joe sixpack american interest with that of Goldman Sachs and pretending they are the same thing has to be more broadly recognized if things are to ever change. The malthusians like to use this trick a lot as well.

Cynthia's picture

The US has put itself on a warpath to dethrone Muammar Gaddafi from power not only because he wants to further nationalize Libya's oil supply, but he also wants Libya to finance its own debt without any assistance from the US banking system. This is why I have come to believe that the Wall Street industrial complex, led by America's top kleptocratic banks, paid to entrap Strauss-Kahn not only as a way to prevent themselves from getting a much-needed haircut, but also as a gift to Sarkozy for assisting the US in its invasion and soon occupation of Libya.

gabeh73's picture

can't ever be sure, but sounds about right to me.

apberusdisvet's picture

Which bank gets the gold?  Do they share in the spoils, or what?

DollarMenu's picture

It's a 21st Century refresh of the  term "barbarous relic".

buzzsaw99's picture

The TSA is groping little old ladies at the airport while the banksters do business with the Lockerbie bomber.

gabeh73's picture

Wake up people the narratives that are fed to the American people throught the MSM are lies. Once the masses accept the narratives then they are in a mental prison where they can only see two Huxley's Brave New World or support Orwell's 1984...either one is supporting the bankster-military-industrial complex oligarchy.

Everybodys All American's picture

Goldman Sachs is a crime syndicate pure and simple.

topcallingtroll's picture

No wonder duplicate posts happen with only one click and refreshes are painfully slow at times.

Zero hedge needs more server space.

Cmon guys. It has to be worth fifty per year. ZH does not get public funding like npr and broadcast.

MonsterZero's picture

I bet those were GE made cluster bombs dropped on the citizenry.

Tense INDIAN's picture


Hephasteus's picture

No it's the way they attack. They close down the "sanctions" which is just economic war. Then they seize assets to destablize the place. Then they go in with army.

Non rothchilds controlled banks. Libya, Syria, Cuba, Iran, North Korea.

All others are puppet states. Pakistan is a puppet state but an unstable puppet state so they are always thown under the bus every time a chance to do so comes up. India is a puppet state but the democratic process is not able to make them fully compliant. China is a puppet state but if it doesn't work out they'll side with russia. Russia is a puppet state with a huge hedge as well. If it doesn't work out right they'll rogue. The only real commited till death do us part states are the united arab emirites. But the whole dubai is a fucking joke sinking in the sand and turning to shit thing is getting on their nerves.

AldoHux_IV's picture

This system is so fucking ass twisted-- makes you really question who the bad guys are.

entendance's picture

Is mr.bean-draghi also involved in that?
He worked for g.s. private banking in Europe between 2002 and 2005
draghi, a jesuit-goldman sachs alumn

Johnny Lawrence's picture

$1 billion in structured products?  That's quite the commission.

Smartie37's picture

Attn Members of Congress:

You are a J - O - K - E 


unfortunately, the U.S. is the punchline

writingsonthewall's picture

Oh look - the two most voiciferous banks in 2009 crowing about how they didn't require a bailout from Government (well not a direct one anyway, we all know they all benefitted from indirect bailouts)

Criminals - all criminals....and when the police won't take action....the people must.

gabeh73's picture

He was a puppet that tried to go off his strings...just like JFK before his execution and Sadam before he tried to pay down debt(become a financially independent country and bucking the OPEC oil production guidance), Reagan before Hinkley came and delivered a message

Cvillian's picture

3M uniques a month? Congrats

If you're managing around $30B and can't say no to $330m in shady assets (just around 1% of AUM), you don't deserve to act as a fiduciary of anyone's assets in my book. Good lord.

Foul Ole Ron's picture

I don't think the firms listed above broke AML rules. When Libya was going through it's rapprochement with the West part of the deal was that they were removed from the AML block that the US had imposed on them which had effectively shut them out of the global banking system. I know a quick perusal of the AML sanctioned entities in my workplace (a large financial institution and none of the above) prior to March would show that the Libyan government wasn't a sanctioned body and could be dealt with.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Nobody does laundry like Wachovia!  Take a look see here and note the penalty:  $160M plus three our fathers, three hail marys and make a damn good act of contrition.


Tuco Benedicto Pacifico Juan Maria Ramirez

Laddie's picture

‘Al Qaeda Fighters Join Libyan Rebels’ that was the Drudge headline on March 26, linked to a Daily Telegraph report.

Ben Bernanke, Andrew Fastow, Maurice Greenberg, Alan Greenspan, Michael Milken, Marc Rich, Myron Scholes, George Soros, the list goes on and on but they all have something in common.

Now the Banksters, well they got several TRILLION Taxpayer $$ and they've done well, speculating in Tel Aviv real estate for instance, yet don't you think the American sheeple, who let it all be taken from them, will just lie down and DIE? I think they will, if they gave up their nation, their HABITAT then they surely will not resist now.