Nine disputed trades that Libya's sovereign wealth fund (SWF) entered into with Goldman Sachs were unsuitable by "dint of risk and complexity", according to an expert witness at a trial in London's High Court.
Reuters reports that the Libyan Investment Authority (LIA) is attempting to claw back $1.2bn from Goldman Sachs from the trades carried out in 2008. It argues the bank took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments.
Goldman Sachs denies the allegations and says the trades in question "were not difficult to understand". It has described the LIA's claim as "without merit".
Martin Harrison, managing director of SUMMA, a management consultancy, appeared in court as an expert witness for the LIA to address the question of suitability.
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