Goldman's Thursday: Sued by Libya; nearly topples Danish government


The lawsuit claims Goldman (GS +1.1%) took advantage of the trust earned with the managers of the fund to exert "under influence" in piling them into a series of equity derivatives trades totaling more than $1B in 2008 that expired worthless (though Goldman made an estimated $350M). Goldman denies the charges.

The claims aren't too far out of line with a common theme of that era - that Goldman routinely took advantage of clients' lack of sophistication. The House of Blankfein has since formed a business-standards committee to stop such practices. "For all of our employees, the experience of initiating, approving and executing a transaction for a client at Goldman Sachs is now fundamentally different" than 5 years ago, wrote the committee last year.

In other news, a deal for Denmark to unload a 19% stake in state-owned Dong Energy to Goldman threatens to bring down the government there. Opposition has grown amid Goldman's plan to transfer ownership of Dong to the tax havens of Luxembourg, the Cayman Islands, and even Delaware. There's also a put option allowing Goldman to sell back its shares to country if an IPO doesn't take place by 2018.

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Comments (5)
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Goldman screwing clients, nothing new here folks, move on.
    30 Jan 2014, 12:17 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9618) | Send Message
     
    Say it aint so Lloyd.
    30 Jan 2014, 12:17 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    If Satan were a second year MBA I'd have to believe he'd be interning at Goldman.
    30 Jan 2014, 12:20 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Why wait till an MBA? He can start much earlier...
    30 Jan 2014, 12:28 PM Reply Like
  • Origa
    , contributor
    Comments (622) | Send Message
     
    I the Danish news section, it is about the VETO right that GS would have in the board, and lets see how GS pulls this.

     

    Some believe in 2018, GS, Would veto the IPO and sell back the shares, and others believe that GS would get the IPO trough and make so many bad business decision that a hidden short would strongly benefit GS when the state-owned Dong shares collapses under "proven in court mismanagement".
    30 Jan 2014, 02:59 PM Reply Like
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