Jump to content
House Price Crash Forum
Sign in to follow this  
Executive Sadman

Just Remember, Theres Always Someone Worse Off Than You

Recommended Posts

http://www.guardian.co.uk/business/2011/may/31/goldman-sachs-libya-investment?INTCMP=ILCNETTXT3788

According to an investigation by the Wall Street Journal, Goldman offered to make Gaddafi one of its biggest investors as compensation for losing 98% of the money the Wall Street firm invested on behalf of the Libyan Investment Authority (LIA). This left the $53bn Gaddifi-controlled sovereign wealth fund, which elsewhere has stakes in companies such as Financial Times-owner Pearson and BP, with just $25.1m of the money it entrusted to Goldman.

He should have gone to a real money spinner, like Madoff.

Share this post


Link to post
Share on other sites

http://www.guardian.co.uk/business/2011/may/31/goldman-sachs-libya-investment?INTCMP=ILCNETTXT3788

According to an investigation by the Wall Street Journal, Goldman offered to make Gaddafi one of its biggest investors as compensation for losing 98% of the money the Wall Street firm invested on behalf of the Libyan Investment Authority (LIA). This left the $53bn Gaddifi-controlled sovereign wealth fund, which elsewhere has stakes in companies such as Financial Times-owner Pearson and BP, with just $25.1m of the money it entrusted to Goldman.

He should have gone to a real money spinner, like Madoff.

Another Goldman oopppss on the same link

The complexity of an esoteric Hong Kong financial instrument has come back to haunt Goldman Sachs after an simple typographical slip threatened to cost it HK$350m (£27m).

The error appeared in the small print of a phone book-sized prospectus accompanying the issue in February of four so-called "exchange-traded warrants" which offered exposure to Japan's Nikkei index of leading shares.

In a formula to calculate the value of the warrants a multiplication symbol appeared where their should have been a division.

The potentially costly error appeared in the bank's paperwork despite it having been scrutinised and approved by the Hong Kong stock exchange. Such warrants are hugely popular in Hong Kong, with 14,400 similar products said to have been issued last year by large investment banks.

It was not until the end of March — almost seven weeks after the warrants had been issued — that a lawyer from Goldman reported the mistake to the stock exchange. For almost two hours the price of warrants began to soar until trading was suspended at the bank's request.

Goldman has offered to buy back warrants at a 10% premium, an offer accepted by 75% of holders. However, a hard core of large investors believe they are contractually entitled to considerably more. One told the Economist magazine the bank's offer was worth HK$10m, whereas a strict application of the formula suggested the warrants could be worth $350m.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.