The USS Stark (FFG 31) burns and lists to port on 18 May 1987, one day after the guided missile frigate was struck by two Iraqi-launched Exocet missiles. The attack killed 37 sailors.
The New Sovereign Investment Fund of Libya or of Colonel Qaddafi, there is no distinction in the money funds of Libya or Qaddafi, invested $1.3 Billion with Goldman Sachs; the bank used the funds on stock options at a variety of international banks and a collection of currency bets. Two years later, the Libyan fund had lost 98% of its value and was worth only $25.1 million.
Officials of Libya's sovereign wealth fund were upset with Goldman Sachs and accused them of malfeasance; mainly, for making trades without authorization and misrepresenting investment deals.
In July 2008, [Mustafa] Zarti, the fund's deputy chairman, summoned [Youssef] Kabbaj, Goldman's North Africa chief, to a meeting with the fund's legal and compliance staff, according to Libyan Investment Authority emails reviewed by the Journal. One person who attended the meeting says Mr. Zarti was “like a raging bull,” cursing and threatening Mr. Kabbaj and another Goldman employee. Goldman arranged for security to protect the employees until they left Libya the next day, according to people familiar with the matter.
Tip-top Goldman bosses, including CEO Lloyd Blankfein and finance chief David Viniar, scrambled to try to figure out how to fix the relationship with Libya and maintain access to its vast fortune. They also feared that word of the massive loss would spook other sovereign funds, so they offered the nation several ways to recoup the money. The last of the offers was made in a June 2010 meeting. Eight months later, the United States froze some $37 billion in Libyan assets as dictator Muammar Qaddafi turned on his rebelling people. Included in that large amount was what was left of Libya's investment with Goldman.
In July 2008, [Mustafa] Zarti, the fund's deputy chairman, summoned [Youssef] Kabbaj, Goldman's North Africa chief, to a meeting with the fund's legal and compliance staff, according to Libyan Investment Authority emails reviewed by the Journal. One person who attended the meeting says Mr. Zarti was “like a raging bull,” cursing and threatening Mr. Kabbaj and another Goldman employee. Goldman arranged for security to protect the employees until they left Libya the next day, according to people familiar with the matter.
Being enraged with a favored company of Obama might be dangerous to your position and your health; after all, Obama has the U.S. military and if he keeps his intervention small enough, he doesn't need congressional approval.
relations between Goldman and Gaddafi became increasingly strained, the Wall Street firm made a total of three separate compensation offers to invest in the group on attractive terms between May and June of 2009, including the deal involving preferred shares. Another proposal would have given the LIA unsecured debt in Goldman, promising a stream of payments that would eventually have repaid the losses.
Over the next two years, discussions on these and a series of other compensation proposals were discussed by LIA and top-level Goldman staff – chairman Lloyd Blankfein, finance head David Viniar and European chief Michael Sherwood. However, they were unable to agree a solution and talks are thought to have eventually petered out last summer.
Now a company that can lose 98% of a 1.3 Billion Dollar investment might be first in line to receive Tarp Funds, thanks to Henry Paulson, Ex-Treasury Secretary. Tim Geitner who is connected to the Federal Reserve, who names Mark Patterson, former lobbyist for Goldman Sachs and the man replacing Geitner at the FED is William Dudley, former chief economist at Goldman Sachs.
Just How Close Are GS And Obama
Goldman offered Libya's securities-wealth fund an opportunity to invest $3.7 billion in the securities firm, the paper continued, one of six options placed on the table over months of negotiations.
The proposals came at the same time Goldman had taken $5 billion in investments from Warren Buffett's Berkshire Hathaway Inc. in order to pass the Federal Reserve's “stress test” to determine whether it had to raise additional capital.
The United States is now one of the NATO allies targeting Libya with rockets in an attempt to get Qaddafi, the decades-long despot, out of power and to see a Transitional National Council take his place.
With all the money wizards of GS and the Obama Administration swapping bunks, is it possible that the financial rip off of Qaddafi was about to become an embarrassment?
What better way to get rid of an embarrassment than to take him out with missiles when he threatens his people, while ignoring other despots that are actually killing their people by the thousands, we are talking about an embarrassment of Goldman Sachs for Muhammad's Sake! Let's remember GS used their bailout to start making a profit, they have managed to do so well with their wizardry that they can award 28,000 employees a $600,000 bonus. We can't lament a few rockets that can help keep the reputation of a company like GS pristine and untainted by corruption. It is imperative that we keep things in perspective.
But damn Obama's luck, the rockets didn't kill the Desert Fox and the maniacal fanatics of the Muslim Brotherhood didn't pull him to pieces, now what is happening to the reputation of Goldman Sachs. Qaddafi wants his money back and the wizards of Obama and Goldman Sachs ain't looking too clever.
Obama's promise to rid his administration of lobbyists is a standing joke when it comes to Goldman Sachs. Geitner has reportedly chosen a former GS lobbyist Mark Patterson to be his chief of staff. Patterson worked as a registered lobbyist for GS from 2005 to April of 2010.
It's natural for Geitner, a former CEO of Goldman Sachs to select a Goldman Sachs insider for the number 2 position. At the Treasury, Jerry Rubin of the Clinton administration, was another Goldman Sachs CEO.
The man chosen to replace Geitner at the New York Fed was W. Dudley former Chief Economist for Goldman Sachs.
Goldman Sachs may as well be considered a part of the federal government. They paid Bill Clinton just under $950,000 for speeches between 2004 and 2007. Their Political Action Committee was the fourth largest donor to Clinton's campaign, just below Citigroup. The Center for Responsive Politics maintains that Goldman's Political Action Committee invested over a half million to congressional candidates in the 2008 elections, mostly Democrat incumbents. Goldman Sachs employees contributed more than $5,000,000. Obama received over $1,000,000 from GS for the 2008 election.
How quaint of Obama to promise to limit the influence of lobbyists in his administration. Goldman has had a seat at the table since regulations on finance were began to be unlaced during the Clinton years, they were among the first and largest recipients of TARP funding, receiving $10 billion immediately.
In matters of the economy, we can have faith in the intellect of men like Geitner, who according to Bernanke has two main guiding principles: “Life's about alternatives” and “A plan beats no plan”. Bernanke also has referred to Geitner's technique to thwart critics, “spray foam on the runway”; meaning, you take steps to limit collateral damage from crashes.
Would Obama be willing to use our military to cover for Goldman Sachs' incompetence and corruption?
The answer may be hidden within another question, would Obama be willing to use the military to cover for his own incompetence and corruption?
