Libya's Bankers Exposed: Goldman, JP Morgan And Citi

Tyler Durden's picture

Ten days ago, when we first looked at the Libyan investment authority (its sovereign wealth fund), we asked "Which US Banks Are Managing Billions For The $32 Billion Libyan Sovereign Wealth Fund?" Based on Wikileaks data, it was disclosed that various US banks manage billions for the country which has just seen $30 billion of its assets largely frozen (although this is merely half of its total deposits). Obviously, we had "some" banks in mind, most of the variety whose directors believe they are above the law and can share inside information with criminal intent with utter disdain for the law. Now, courtesy of Marcus Baram of the Huffington Post we find that the usual suspects are, naturally, all here: among the key banks that serve as advisors and asset managers are Goldman Sachs (and not just anyone, but Jim "Revolutions are Bullish" O'Neill's GSAM, Citi and JP Morgan. The only question now is how long before we get some sort of public statement out of the likes of Lloyd Blankfein and Jamie Dimon: on the 22nd we said: "perhaps it is time for the US banks who manage billions in capital for the LIA, to step up." Now that they have been exposed by a third party, the CEOs should really take the hint before this escalates into a full blown PR disaster.

HuffPo writes:

The secretive Libyan Investment Authority has reportedly invested hundreds of millions of dollars in Goldman Sachs Asset Management funds, including a loan fund designed to invest in new hedge funds set up by the Kuwait Investment Authority. Goldman Sachs already has a relationship with Libya -- in 2008, Goldman was the first U.S. bank to get a contract with the country following the removal of sanctions, when it was hired by Libya's central bank  to provide information on its behalf to credit rating agencies. A spokesperson for Goldman Sachs did not return calls seeking comment.

The Libyan government, including LIA, has also banked with Citigroup, according to several sources familiar with the matter. A spokesperson for Citigroup declined to comment on the bank's interactions with the Treasury Department's Office of Foreign Assets Control, which is in charge of carrying out Obama's order regarding Libyan assets.

JPMorgan Chase reportedly handles much of the LIA's cash and some of the Libyan central bank's reserves. The summer after then-Secretary of State Condoleezza Rice visited Gaddafi in 2008, LIA gave "mandates to some of the international banks, including JPMorgan to manage their funds in the interbank money markets, according to Vanity Fair.

Banks are not the only entities: Washington DC darling private equity firm, and alleged CIA front organization, Carlyle is also among the collaborators:

Two years ago, the Carlyle Group's co-founder and managing director, David Rubenstein, and Blackstone chief executive Steven Schwarzman traveled to the Libyan capital of Tripoli to help celebrate the wedding of Mustafa Zarti, the deputy director of the LIA, in a massive tent set up on the outskirts of the city, reported the Financial Times. And when Gaddafi's son and longtime likely successor, Saif al-Islam, visited New York in November 2008, Schwarzman hosted a lunch for him at the Blackstone CEO's Park Avenue apartment. The younger Gaddafi was also honored on that trip by Carlyle's retired chairman, former defense secretary Frank Carlucci, who hosted a dinner for him in a private room at the City Club.

Yet while nobody really cares about Carlyle which for decades now has managed to remain behind the scenes, even though in many regards it is the Goldman Sachs of the Private Equity world, many do care about Goldman, especially following today's latest disclosure of supposed gross and criminal abdication of fiduciary duty by a person at the very top. The last thing Goldman needs is to be disarming a PR minefield in which various bloggers and the less than mainstream media (certainly excluding those that have Goldman Sachs Asset Management ad banners on their pages) try to pin the tail on the Blankfein donkey of PR blunder following PR blunder.

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AN0NYM0US's picture

GS, say it isn't so

JPM, it cannot be

Blackstone, I say NO, they are righteous bankers. To wit: "better that ten guilty persons escape than that one innocent suffer"

Carlyle, WTF; is this some sort of a smear campaign?


all the above, notwithstanding the huffpuke citation

Careless Whisper's picture

frozen accounts can't be withdrawn. so the billions just sit there to the benefit of the banks. so don't you think it was the banks that ordered the freeze and their puppets just carried out the order.

Michael's picture

How much money is the stock in the frozen Egyptian stock market worth?

I think they used to call it dead money.

Better yet, what happens when Egypt and Libya withdraw their money from western banks to spend in their own countries, pay for rebuilding and buy food for their food banks?

iDealMeat's picture

More like the ME has learned Western banks can't freeze or confiscate their wealth if they keep the Oil in the ground and raise the price..

Western greed has truly fucked us all..  The age of Oil is over.



Widowmaker's picture

Bankers and politicians sucking greed-dick while trying to rationalize being whores because of the "free market" all the while throwing other people's children to the dogs of war to take the bullets.

Do not forget about the biggest bailout of them all -


Widowmaker's picture

Best line I read from another post:

Bankers are government sponsored terrorists.

That is a fact.

Fish Gone Bad's picture

With Libya now being a "non-state", this is almost like declaring that it is open season for homesteading in Libya.  There has never been a better time to grab an entire country than now.  I am just wondering, there must be some similarity to the United States and pre-World War II Germany.  Perhaps the US will be able to pull off what Germany failed to do... total worldwide domination.

Cash_is_Trash's picture

so the billions just sit there to the benefit of the banks.

And Citi remains bankrupt...

The whole country is bankrupt.

Money Junkiezz

AnAnonymous's picture

frozen accounts can't be withdrawn. so the billions just sit there to the benefit of the banks. so don't you think it was the banks that ordered the freeze and their puppets just carried out the order.


Much cogenter than the current rationale that introduces this money as the Libyan dictator's holdings, therefore justifying the freeze and not as national assets which can be tapped into by the national government to meet its needs.

bigelkhorn's picture

Unfortunatly you are spot on. This middle east crisis will get worse too!


I subscribe to the guy from australia  

They are very accurate with their past calls, and they say its gunna get bad over there. And shoot up crude to silly levels.  

They have a big launch for an ebook they are releasing


Looks VERY intresting. Their prelaunch page is over at :-

nathandegraaf's picture

If this is to be fixed it will only be through passing on our lives of dissent to our children.  The banks have been running all of this for centuries by controlling education, job placement and political leaders.  In a long con that spans generations, you need new surnames to retain control. 

Revolutionaries last one, maybe two generations at most. 

Game, the fuck, over.

Buy silver and gold and watch as they take them back from you and yours. 

Michael's picture

The rise of Islamic banking in the East will diminish the power of the cartel significantly. I think this is what they fear the most.

Michael's picture


The last time I remember when steeling gas from peoples cars was back during the Arab oil embargo. Back then they were into siphoning. Cordless drills were not even in existence back then. This method is much more destructive and disturbing.

Thanks for the everything Bernank.

Gas thieves drilling holes into tanks of parked vehicles

"FORT MILL, SC (WBTV) - Police are looking for thieves who are stealing gasoline by drilling holes into gas tanks of parked vehicles.

The York County Sheriff's Office says there have been five incidents reported in the Baxter Village and Bailiwyck areas of Fort Mill.

The thefts are taking place at night. Some of the victims did not realize that someone had drilled into their gas tanks until the vehicle was at a repair shop. 

The incidents have occurred on Camber Woods Drive, Jones Wade Court, Stafford Run Drive, Lower Assembly Drive, and Glenn Allen Way."

"Peter Dressel told police between 4 p.m. on Jan. 21 and 10 a.m. on Jan. 22, someone went underneath his gray 2006 Ford F-150 and drilled a hole in the tank. The estimated damage to his truck was about $1,400. The thief stole a half tank of gas valued between $42-$48."

slewie the pi-rat's picture

hi, nathan de grif:  you are perceiving things well. and, you are in charge of "only" one person.  as are the fuking banksterZ, too!  each and everyone of them.

i still say i'll take lloyd, jamie, ben, and timmahG as the baddest banksterZ, bar none.  banksterZ these days are fabulously archetypal.  they are center stage and they are puttin on one heluva show!  and, of course, they are fuking things up, totally, for the whole freaking world.  our guys are americans.  we are so gonna clean these other morons 0-U-T that the words "double-cross" will never mean the same, again.  trust me. YouTube - JJ Cale & Leon Russell - I Got The Same Old Blues


two4one inflation FIGHTr: YouTube - Leon Russell & Friends 1971 -Honky Tonk Woman

p.s.  it has just dawned upon my addled brain that my gf, msZ, would probably have her lipstick much closer to my dipstick if we included blythe in the realm of the AmericanSuperheroBanksterZ.  so be it, and she can take a copy of "streetcar named desire" so blanche du bois will be represented in the breach. blythe has a great ass.  trust me.

Misean's picture

I can hardly believe it!

Atomizer's picture

If your not following the money changers political agenda, a few bank account key strokes and 24/7 news coverage can destroy any leader. The comedy behind this approach, social networking is utilising the same ploy against the propaganda architects.

nathandegraaf's picture

The comedy behind that approach: social media is selectively choosing and building up propoganda architects. 

Oh regional Indian's picture

+1 billion twits
The brazen use of social media for social engineering has been an absolute masterstroke. The google man in egypt was unbelievable. I laughed so hard at how adoringly he was received.

And so, as disclosures like this roll on by, no one really cares anymore. Same 5-6 banks, ripping the guts of the world while profiting and no one cares.
They will when some twit they follow twitters about it.

taxpayer102's picture

Using social and digital media to instigate protests in Egypt, Tunisia, Libya, etc. coincides with the Broadcast Board of Governors ( "template" disclosed in their 'Staying Ahead of the Digital Curve; US Global Engagement in the New Media Era' article.  BBG distributes programming in 59 languages via radio, TV, the Internet and "other media" and oversees all U.S. civilian international broadcasting, including the Voice of America (VOA), Radio Free Eurpoe/Radio Liberty (RFE/RL), Radio Free Asia (RFA), Radio and TV Marti and the Middle East Broadcasting Networks (MBN) Radio Sawa and Alhurra Television.


koaj's picture

keep buying silver. crash these fuckers

Jaw Knee Cash's picture

Better yet, convert all paper promises to real money. Ammo, silver, gold, platinum, palladium, not necessarily in that order.

freedmon's picture

Isn't ammo a promise, in a way?

nathandegraaf's picture

better yet, get the people to stop paying. 

pods's picture

I second that notion.  Serfs stop buying anything on credit (done), ponzi forces to increase credit till end game collapse.

The only way to win is to drain the squid et all of their lifeblood, credit.

No credit, no squid.


Burnbright's picture

Hi five to someone who knows what is up.

Overflow-admin's picture

Better add stockpile (not necessarly in that order):
* canned goods
* pasta / rice
* wine (fine wine is always a good asset)
* beer
* deep-forzen goods if you have an alternative power source

P.S. Add water if there isn't any drinkable water source nearby.
P.P.S. If you have enough and still have fiat paper, then silver gold etc.

buzzsaw99's picture

"My people love me. They would die for me. They will die to to protect me... my people," The Squid told ABC News.

Freddie's picture

""My people love me. They would die for me. They will die to to protect me... my people," The Squid told ABC News."

The Squid?   Oh - you are talking about Charlie Sheen.

papaswamp's picture

Probably one of the least shocking news...

Jaw Knee Cash's picture

Gasp! Shocking! (do I even need a sarc tag here?)

disabledvet's picture

ROUND UP THE USUAL SUSPECTS!  I can't believe there's gambling, GAMBLING go on in here!  North Africa no less!!!!  SEND IN THE LATRINES!  MOVE IT, MOVE IT!

falak pema's picture

Back in the Roman days, when Septimus Severus, local son of Leptis Magna, Libyan Colony of Rome, became Emperor, as new Caesar he ordered that all latrines in his beloved home town, not for from actual Tripoli, be made of best Marble, with a super duper plumbing and evacuation system. All the Leptis Magna nobles used to meet on their marble shit seats every morning, sipping their nectar/orange juice, eating their fried eggs on toast, reading the local ZH slate sheet planning their daily buy-sell schedules. It was the thing to do in glorious Leptis Magna. It was the place to be under blessed son, New Rome away from old Roman home.

Our new African born Caesar today probably remembers those good old roman days as he sips his coffee every morning with the same TBTF bankstas who service the current royalty of NEW Leptis Magna, on their Libyan toilet seats. What's changed?

Time to flush the royal family to oblivion. Down their marble hatches. Pronto! And cut the golden nuts of these TBTF bankstas at home, in dirty Wall of shame Street homes. Where they probably dream of benefitting from the ill gotten riches of now falling libyan emperor and family, stashed in their safe tax haven numbered accounts.

Harmonious_Dissonance's picture

^^ This is my suprised face

Misean's picture

This, is, of course, gonna be the top news item going into tomorrow, replacing the ever important Charlie Sheen and Oscar news...

Long-John-Silver's picture

I'm depressed that I must share the air with the likes of Charlie Sheen.

Misean's picture

I'm depressed I have to share the universe with people who care about what Charlies Sheen says and does...

Fearless Rick's picture

I suggest everybody walk a mile in Charlie Sheen's shoes and just leave him alone. Hell, he's rich and likes to party with hookers. Seems sensible enough to me.

Misean's picture

I wasn't bagging on Charlie Sheen...

Fish Gone Bad's picture

Ah, to have an empty life that can be filled up with booze, drugs, and hookers.

Long-John-Silver's picture

Why am I not surprised?

Careless Whisper's picture

make a deposit with goldie or jp morgue and poof it's gone. stupid libyians. they trusted wall street. not much different than southpark bank & trust;


kato's picture

Goldman has ties to and works with every government. No big deal there. Goldman has done nothing wrong.

A supposed upstanding director turns out to be a scumbag. That is not a direct indictment of Goldman; it is horrible and horrible publicity, but not the fault of the company.

I would love to see Carlyle lose everything. Unfortunately, if they do, the will go to the US Government and demand that their losses be made whole. And they might be.

penisouraus erecti's picture

Shocking. ....... well, not really.

DRT RD's picture

I hear Egypt wants to USD to trade oil. Great, Google mandated revolution is drying up like my curing pork belly. I wonder if Egypt will smell like my smoked pork belly?