Libya Investment Authority Wants Refund from Goldman Sachs and SocGen
Sovereign wealth funds can survive financial catastrophes and now political revolutions. The Libya Investment Authority (LIA) trusted a large portion of its assets to global investment houses. The LIA lost US$ 1.75 billion in structured product investments managed by Goldman Sachs and Societe Generale according to Mohsen Derregia, chairman of the Libyan Investment Authority. Globally, many public investors invested money in structured products at the time.
The LIA is currently reviewing its investment portfolio and performance. They are looking at how those investments were selected, procured, and managed.
In an interview with reporters, Mr. Derregia said, “then we will talk to the investment houses and see if we can claim a refund.”
Total assets of the LIA now range between US$ 50 and 60 billion far less than feared by executives at the LIA.