I stumbled across this story in my morning reading and I have yet to determine if it is a good story or a bad story.
Goldman Sachs invested more than $1.3 billion from Libya’s sovereign-wealth fund in currency bets and other trades in 2008 and the investment lost more than 98 percent of its value, the Wall Street Journal reported, citing internal Goldman documents.
Nobody is happier about the failure of Goldman Sachs – even in one trade for one client – than me. My happiness is only increased by the fact that the money lost belonged to a regime led by a tyrant and dictator. The funniest bit, in my opinion, is that Goldman tried to cover the losses by allowing them to buy $5 billion in preferred Goldman stock for the price of $3.7 billion.
Among the different proposals put forward by Goldman Sachs to recoup the losses was one in which Libya would get $5 billion in preferred Goldman shares in return for investing $3.7 billion into the securities firm, the paper added.
“Hey, we’re real sorry about the $1.3 billion we already lost. How about you give us $3.7 billion more and we’ll call it five. But instead of investing it and potentially losing 98% of it – we’ll give you preferred shares in our crumbling company because, like you, we exploit our national government and get rich off the backs of the people paying taxes.” Goldman is behaving like the casino that comps a room to a high rolling trust fund baby that just lost his shirt at the craps table. Goldman obviously doesn’t want to lose the business of a client who has billions of dollars to invest – no matter how they acquired that money.
These self appointed Atlases cater to dictators because they have no morals. Their only morality is money. They have no shame. Do they shamelessly pander to dictators? Yup. Do they fraudulently mislead their clients to make a buck? Yup. Do they pay themselves massive bonuses while being bailed out by the government after having destroyed the wealth of millions of families? Yup. Do they proclaim that they are doing “God’s work”? Yup. They are bad people. And we need to see them for what they are.