Goldman bankers said to face threat against families


'I felt quite traumatized by the experience'.

A Libya Investment Authority executive threatened two Goldman Sachs bankers at a 2008 meeting in Tripoli, telling them the firm had 'screwed' the sovereign wealth fund, according to the LIA’s evidence at a London court hearing Monday.

Bloomberg News reports that former LIA executive Mustafa Zarti was so angry about bad investments that he cursed at the two bankers, Youssef Kabbaj and Nick Pentreath, in English and Arabic after questioning some of the fund’s 2008 trades with Goldman, according to Catherine McDougall, a lawyer at a London law firm who was temporarily assigned to the LIA at the time.

'Get out of my country,' McDougall recalled Zarti as saying in a witness statement she prepared for the LIA in a $1 billion lawsuit against Goldman. The bankers gathered their things and left quickly, she said.

Libya’s sovereign wealth fund sued Goldman Sachs over money losing investments made in 2008, saying the bank exploited the LIA’s inexperience to sell risky derivatives. 

Zarti 'launched into a very angry tirade, saying that he had a bad side as well as a good side and that he could come after their families,' McDougall said in the statement.

McDougall was recalled from Libya in August 2008 after she was told by her law firm, Allen & Overy LLP, that the LIA had made a complaint about her. She resigned the same month without any disciplinary action being taken, and said in her witness statement 'I felt quite traumatized by the experience.'

Hit the link below to access the complete Bloomberg News article:

Goldman Bankers Threatened by LIA Executive in ‘Tirade’

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