Goldman compliance chief raised concerns about internship

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A Goldman Sachs compliance chief raised concerns about an internship the bank provided for the brother of a decision-maker at Libya's sovereign wealth fund, a court heard on Tuesday.

Reuters reports that in a trial at London's High Court, the Libyan Investment Authority (LIA) is attempting to claw back $1.2bn from the Wall Street giant from nine disputed trades carried out in 2008.

The LIA argues the U.S. bank took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments.

It cites an internship Goldman Sachs provided for Haitem Zarti, the younger brother of Mustafa Zarti, the LIA's former deputy chief.

The LIA says a special internship was created for Haitem as he was considered unsuitable for the bank's regular programme, where applicants undergo a rigorous assessment process.

Andrea Vella, who was a partner at Goldman Sachs at the time and is now co-head of investment banking for Goldman's Asia ex-Japan operations, took the younger Zarti on to his team.

In a July 23, 2008 email exchange seen by the court on Tuesday, James Peters, the head of compliance for the investment banking division in Europe, on learning of this, asked Andrea Vella to come to him first in the future on what he called "client placements".

"We always do everything we can to avoid them anywhere in IBD - they raise multiple issues," he said.

To access the complete Reuters article hit the link below:

Goldman compliance head queried internship in Libya fund case, court told

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