Libya SWF “Taken For A Ride” By Goldman Sachs?

The Libyan Investment Authority, Libya’s sovereign wealth fund, took Goldman Sachs Inc. (NYSE:GS) to court in London on Monday, claiming $1 billion in damages and alleging that the bank exploited the wealth fund’s limited financial experience and encouraged it to make risky and ultimately loss-making investments.

Goldman Sachs, however, countered that the authority’s case was “a paradigm of buyer’s remorse.”

LIA’s claim against Goldman

As reported in January, Libya’s sovereign investment fund sued Goldman Sachs Group in London’s High Court, saying it lost over $1 billion on now-worthless derivatives while the bank walked away with a profit of $350...