Looks like GS got Mr.Q hooked with some crazy deals in 2008 and when the investments nose dived to 2% of initial value SHTF:
Between January and June 2008, Goldman execs set up a $1.3 billion investment in option contracts on Citigroup, Italy’s UniCredit, Spain’s Banco Santander, German insurer Allianz, French energy company Electricite de France, Italian energy company Eni. The investment, which also included a basket of currencies, worked on the thesis that the stocks would rise in value.
Interestingly all those counterparts governments are interested in overthrowing the guy. Now it wouldn’t be GS if they would not make another deal well knowing that this get the full attention of Washington.
In their attempts to fix the relationship and make up for the losses, Goldman executives offered Libya various investment options that included large stakes in the company. Negotiations which included CEO Lloyd Blankfein, CFO David Viniar, and European top exec Michael Sherwood, resulted in the company offering to finance a $3.7 billion investment that would give LIA $5 billion in stock and a payment of 4% to 9.25% annually for 40 years. There were other offers including preferred shares, unsecured debt, a special purpose vehicle in the Cayman Islands, and investments in credit default swaps.
After meeting for the last time in June 2010, the deal never materialized. As of that date, the LIA had about $53 billion in assets. In 2011, after civil war erupted in Libya and Gadhafi said he would not step down, the U.S. government seized about $37 million in Libyan funds, including some still managed by Goldman Sachs, according to the Journal. (Read Gadhafi’s $30 Billion In US Assets Blocked By Treasury).
So Mr.Q would have been a shareholder of GS? No way. GS & friends finally got rid of this problem with some help from their cronies in the military and by the rebels to which they surely funneled some US tax payers money to.
As always GS will surely be in for more profits as the rebels will not ask for the money to be returned as they are in GS back pocket. Anyway, we have learned some months ago that the rebels had established their own oil company in April, supposedly to pay back for the weapons suppport they got after their victory.
Mustafa Alani, of the Gulf Institute of Strategic Studies in Dubai, said the shoulder-launched weapons were a significant addition to the rebel arsenal because Nato aircraft could not target Libyan armour in built-up areas without risking collateral damage. Helicopters could do so but there is evident reluctance to deploy them.
“These missiles need minimum training. It’s aim and shoot,” Alani said. “They are effective especially against the old generation of Soviet-made T72 tanks.” Journalists in eastern Libya last week reported seeing rebels armed with Milan missiles for the first time.
Qatar’s armed forces are themselves equipped with the Milan but Alani said the weapon could have been bought by the Qataris directly from France for delivery to the Libyans.
Needless to say that GS surely had bets on all of the possible outcomes and makes some dollars out of it whatever the outcome is. But with unlimited military support you don’t need to be the sharpest tool in the shop to realize who will win.
Next up on the show is the question: who get’s his hands on the biggest fossil water resources on earth deep below the lybian desert ? (for it is the game of the 21st century if you don’t heard of it yet). The french are frontrunning the rest of the NATO gang with Veolia, which of course the nation that fires the first shot seems to be entitled to.
Anyway congratulations, GS!
Dictators of the world, learn your lesson. Don’t every ask GS for repay or JPM for your gold! Next stop of the roadshow: Venezuela
But go figure out for yourself
The Angry Rottweiler