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Goldman Sachs’ $5 billion Libya trades: most traders wouldn’t see that ‘in their lifetime’

Posted on 15 July 2016 by VRS  |  Email |Print

An expert witness in the litigation between Goldman Sachs and Libya’s sovereign wealth fund said disputed trades of $5 billion were bigger than most traders would see in their careers, making the profits difficult to compare to industry standards.
Will Lyons, a former head of equity derivatives trading at Santander who is acting as an expert witness for Goldman Sachs, said: “I regard the size of these trades as very large and very seldom would you see transactions this size in the market,” under cross-examination from Roger Masefield, the Libyan Investment Authority’s lawyer on Wednesday………………………………………..Full Article: Source

UBS said to have flagged suspicious 1MDB transactions to MAS

Posted on 14 July 2016 by VRS  |  Email |Print

UBS Group flagged suspicious transactions linked to 1Malaysia Development Bhd (1MDB) to the Monetary Authority of Singapore (MAS), prompting an investigation of the accounts involved, a person familiar with the matter said.
The transactions were not immediately recognised by UBS as suspicious, said the person, who asked not to be identified because the matter is private. At least US$1.24 billion (S$1.67 billion) was transferred in 2014 from the account of a 1MDB subsidiary held at BSI SA in Lugano, Switzerland, to a UBS account in Singapore held by what appeared to be a unit of an Abu Dhabi company, UK-based investigative blog Sarawak Report said on July 11………………………………………..Full Article: Source

Pua asks whether Deloitte was hoodwinked by 1MDB

Posted on 13 July 2016 by VRS  |  Email |Print

DAP lawmaker Tony Pua has questioned whether audit firm Deloitte Malaysia was “bluffed” by 1MDB into believing that the troubled state investment fund had redeemed its controversial Cayman Islands investment in 2014.
At that time, there was great concern over 1MDB’s US$2.318 billion investment in an obscure investment fund based in Cayman Islands. The authenticity of the investment was publicly questioned and the company came under immense pressure, resulting in the demand for the money to be repatriated………………………………………..Full Article: Source

Sahara inks Rs 10k crore deal with ‘Qatar fund’ for sale of hotels

Posted on 12 July 2016 by VRS  |  Email |Print

The Sahara group on Monday sought the Supreme Court’s clearance to its proposed sale of three overseas hotels to Qatar Investment Authority (QIA), which is part of Qatar’s sovereign wealth fund.
Appearing for the group, senior advocate Kapil Sibal promised Rs 300 crore more by August 3 and said the group wanted to transfer to the SC-created Sebi-Sahara account Rs 200 crore (24 million pounds) already advanced to it by Kassiopeia Holdings Ltd over the deal relating to Grosvenor House Hotel in London………………………………………..Full Article: Source

1MDB agrees to arbitration request filed by IPIC, Aabar over US$6.5b claim

Posted on 12 July 2016 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) said it has agreed today to the request for arbitration (RFA) filed by International Petroleum Investment Co (IPIC) and Aabar Investments PJS (Aabar) at the London Court of International Arbitration.
In a statement, 1MDB said it is confident of its legal position and has submitted a formal and “robust” response to the RFA through its legal counsel, Weil Gotshal & Manges, a specialist in international litigation. “1MDB reiterates that, notwithstanding the dispute with IPIC, it will continue to implement the rationalisation plan and remains able to honour its current debt obligations,” it added………………………………………..Full Article: Source

Sahara seeks SC nod for $1.6 bn hotel sale

Posted on 11 July 2016 by VRS  |  Email |Print

In its application Sahara informed the Supreme Court that it is in advanced stages of negotiations with Qatar Investment Authority (QIA)Qatar-based sovereign wealth fund, for sale of its three premium hotels. Sahara’s three prized jewels include - the Grosvenor House in London and the Dream Downtown and New York Plaza in New York.
Sahara informed the court that the two sides have already concluded the signing of the Letter of Intent (LoI). Sahara also revealed that the after negotiations the consideration agreed upon for the cumulative stake of Sahara in all three properties was USD 1.6 bn. Ater the signing of the LoI, talks between Sahara and QIA progressed at a fast clip………………………………………..Full Article: Source

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

Posted on 06 July 2016 by VRS  |  Email |Print

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. In a trial at London’s High Court, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion 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………………………………………..Full Article: Source

1MDB probe poses risks for Goldman Sachs

Posted on 06 July 2016 by VRS  |  Email |Print

US prosecutors are focusing on the bank’s role in advising on three Malaysian bond deals. Two blocks from the White House, in a century-old stone building once owned by Lehman Brothers, federal prosecutors are probing the activities of Goldman Sachs in Malaysia.
Department of Justice officials are investigating whether the Wall Street bank violated the Bank Secrecy Act in its handling of the proceeds of securities offerings for 1Malaysia Development Berhad (1MDB), a state investment fund embroiled in a long-running scandal over claims of misappropriation, according to people familiar with the probe………………………………………..Full Article: Source

Abu Dhabi Denies 1MDB Cayman Deal (Video)

Posted on 04 July 2016 by VRS  |  Email |Print

Malaysia’s troubled 1MDB fund continues to field questions about billions of dollars gone missing. Abu Dhabi Sovereign Fund has denied it guaranteed 1MDB’s holdings in a Cayman Island’s account and says it’s conducting its own inquiry. Bloomberg’s Shamim Adam reports on Bloomberg Markets Middle East.”.………………………………………Full Article: Source

Goldman Sachs Executive Says Libya Understood Derivatives

Posted on 01 July 2016 by VRS  |  Email |Print

In $1.2 billion lawsuit, country’s sovereign-wealth fund accuses Goldman of leading novices into disastrous investment. A Goldman Sachs Group Inc. executive testified that Libya’s sovereign-wealth fund knew what it was doing when it bought derivatives from the bank that later soured, disputing allegations that Goldman led an inexperienced buyer into a disastrous investment.
The Libyan Investment Authority, or LIA, understood the disputed derivatives it bought from Goldman, Andrea Vella, co-head of Asian investment banking at Goldman, told the High Court in London on Thursday………………………………………..Full Article: Source

Goldman Sachs’ Vella Says Bank’s Critics Aren’t Being Honest

Posted on 01 July 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. executive Andrea Vella told a London court that former colleagues who criticized the bank, including the author of a book alleging it mistreated clients, were being dishonest because they wanted to make money.
Testifying in a $1 billion trial between Goldman Sachs and Libya’s sovereign wealth fund, Vella dismissed comments from two former employees that cast the bank in a negative light. Vella, co-head of Asia investment banking, was shown a chapter of Greg Smith’s book “Why I Left Goldman Sachs” about hunting elephants, a reference to the relentless pursuit of very large trades………………………………………..Full Article: Source

Goldman exec tells Libya fund trial that offering prostitutes ‘unacceptable’

Posted on 01 July 2016 by VRS  |  Email |Print

A Goldman Sachs executive’s alleged arranging of prostitutes for himself and the brother of a decision-maker at Libya’s sovereign wealth fund was completely unacceptable behaviour for an employee of the bank, the first witness called by Goldman told a court on Thursday.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion (906.34 million pounds) from the Wall Street investment bank from nine disputed trades carried out in 2008………………………………………..Full Article: Source

Abu Dhabi to Merge Two State Investment Funds

Posted on 30 June 2016 by VRS  |  Email |Print

Abu Dhabi plans to merge two of its sovereign investments funds, just weeks after the emirate’s largest banks said they are looking to combine, as Persian Gulf governments reshape their economies amid falling oil revenues.
Abu Dhabi’s powerful Crown Prince Sheikh Mohamed bin Zayed has asked the International Petroleum Investment Company, or IPIC, to merge with Mubadala Development Co., according to a statement carried by the official United Arab Emirates state news agency. Abu Dhabi is one of the seven members of the U.A.E., one of the world’s top oil exporters………………………………………..Full Article: Source

Why Abu Dhabi’s Two Biggest Investment Funds are Merging: Q&A

Posted on 30 June 2016 by VRS  |  Email |Print

Abu Dhabi said it will merge two of its largest state-owned investment companies as the emirate grapples with a decline in crude prices and a slowdown in economic growth.
The combination of International Petroleum Investment Co. and Mubadala Development Company PJSC will be overseen by a committee including United Arab Emirates’ Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan and oil minister Suhail Al Mazrouei, according to a statement on state-run WAM news agency Wednesday………………………………………..Full Article: Source

Libya wealth fund boss ‘screamed and cursed’ at Goldman bankers

Posted on 30 June 2016 by VRS  |  Email |Print

The Libyan wealth fund’s former deputy chief screamed and cursed at Goldman Sachs bankers in a stormy meeting over derivatives trades made on the bank’s advice that ultimately turned out to be worthless, a witness told a court on Tuesday.
In a trial at London’s High Court, the Libyan Investment Authority (LIA) is trying to claw back $1.2 billion from Goldman Sachs related to nine disputed trades carried out in 2008. The LIA argues Goldman took advantage of its financial naivety by first gaining its trust, then encouraging it to make risky and ultimately worthless investments………………………………………..Full Article: Source

Libyan fund officials didn’t understand Goldman trades: lawyer

Posted on 30 June 2016 by VRS  |  Email |Print

Libya’s sovereign wealth fund was “astonished to learn” it hadn’t acquired any actual shares through derivatives trades arranged by Goldman Sachs, according to a former lawyer for the fund who gave evidence in the High Court in London on Tuesday.
The Libyan Investment Authority is suing Goldman for $US1.2 billion ($1.62bn) to cover its losses from nine trades arranged in 2008. The trades took the form of equity derivatives and expired worthless in 2011. The LIA allegesthat Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades………………………………………..Full Article: Source

IPIC’s 1MDB row likely driver for Mubadala merger

Posted on 30 June 2016 by VRS  |  Email |Print

The potential merger of Abu Dhabi state funds Mubadala and IPIC is likely to be driven by the latter’s spat with Malaysia’s 1MDB, according to bankers. “It is almost certainly linked to that,” said a UAE-based debt capital markets banker. “IPIC’s name has been somewhat tainted by it.”
IPIC and the Malaysian sovereign wealth fund are embroiled in a legal tussle over a debt restructuring, in which IPIC is claiming about US$6.5bn. The Abu Dhabi fund has asked a London court to arbitrate the dispute, which has also delayed a long-rumoured euro bond deal………………………………………..Full Article: Source

Libyan Fund Officials Didn’t Understand Goldman Trades, Attorney Says

Posted on 29 June 2016 by VRS  |  Email |Print

Libya’s sovereign-wealth fund was “astonished to learn” it hadn’t acquired any actual shares through derivatives trades arranged by Goldman Sachs Group Inc., according to a former lawyer for the fund who gave evidence in the High Court in London on Tuesday.
The Libyan Investment Authority, or LIA, is suing Goldman for $1.2 billion to cover its losses from nine trades arranged in 2008. Those trades took the form of equity derivatives and expired worthless in 2011. The LIA alleges that Goldman executives exerted “undue influence” over its officials, who didn’t understand the trades……………………………………….Full Article: Source

1MDB: Malaysia’s stunning financial scandal

Posted on 28 June 2016 by VRS  |  Email |Print

Malaysia has been rocked for more than a year by a financial scandal involving Prime Minister Najib Razak, a state investment firm, and an alleged frenzy of embezzlement stunning in its scope and complexity.
Authorities in a half-dozen countries have launched investigations into suspicions that several billion dollars was looted from complicated financial transactions involving 1MDB and parked around the world. Following are answers to key questions in the affair………………………………………..Full Article: Source

Norway’s sovereign wealth fund files complaint against VW over emissions scandal

Posted on 28 June 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has filed a complain against Volkswagen as part of a joint legal action following the carmaker’s emissions scandal.
The world’s largest wealth fund said the complaint was filed to the Braunschweig District Court in Germany and is part of the lawsuit filed by law firm Quinn Emanuel on behalf of institutional funds in connection with the scandal. The fund is Volkswagen’s largest shareholder without a seat on its advisory board………………………………………..Full Article: Source

Norway’s wealth fund files complaint against Volkswagen

Posted on 27 June 2016 by VRS  |  Email |Print

Norway’s $850-billion sovereign wealth fund, the world’s largest, has filed a complaint against Volkswagen, as part of a joint legal action following the carmaker’s emissions scandal, the fund said in a statement.
The fund said the complaint was filed to the Braunschweig District Court in Germany and is part of the lawsuit filed by law firm Quinn Emanuel on behalf of institutional funds in connection with the scandal. It is Volkswagen’s largest shareholder without a seat on its supervisory board and said in May it planned to join class-action lawsuits filed against Volkswagen over the German automaker’s emissions scandal………………………………………..Full Article: Source

BSI Bank appeals regulator’s 1MDB sanctions

Posted on 24 June 2016 by VRS  |  Email |Print

Swiss-based private bank BSI is taking the country’s financial regulator to court to appeal “unlawful and disproportionate sanctions” imposed last month in relation to the bank’s business with the Malaysian sovereign wealth fund 1MDB.
The Swiss Financial Market Supervisory Authority (FINMA) has ordered BSI to disgorge CHF95 million ($99 million) in profits for “serious breaches” of anti-money laundering rules. FINMA also effectively closed down the BSI, whose business is being taken over by EFG Bank, and is taking action against two executives………………………………………..Full Article: Source

Libyan Fund Official Had Never Heard of Goldman ‘In My Life’

Posted on 23 June 2016 by VRS  |  Email |Print

A Libyan official who helped review billion-dollar investments with Goldman Sachs Group Inc. said he had never heard of the bank or the word derivative before joining the country’s $60 billion-dollar sovereign wealth fund in 2007.
Hisham Najah, now the Libyan Investment Authority’s chief investment officer, testified Wednesday in the fund’s lawsuit against Goldman Sachs over losses from trades in 2008………………………………………..Full Article: Source

Malaysia fund threatens to fight back

Posted on 21 June 2016 by VRS  |  Email |Print

Troubled Malaysian state investment vehicle 1Malaysia Development Berhad (1MDB) said on Friday (June 17) it plans a “robust response” to an Abu Dhabi sovereign wealth fund’s move to seek US$6.5 billion (S$8.8 billion) via international arbitration of a debt dispute.
The Abu Dhabi fund, International Petroleum Investment Co (IPIC), said on Tuesday that it had submitted a request to the London Court of International Arbitration to intervene in the row. “1MDB will file a robust response to the RFA (request for arbitration)”, 1MDB, or 1Malaysia Development Berhad, said in a brief statement………………………………………..Full Article: Source

Irish Angle on 1MDB Confirms Jho Low Link To Goldman Sachs

Posted on 21 June 2016 by VRS  |  Email |Print

Way back in May 2014, Sarawak Report noted that reports from Ireland and also from a British High Court judgement made clear that Najib’s 1MDB proxy, Jho Low, was using money from the development fund to back his own private equity ventures.
Specifically, in April 2011, Low had acquired a controlling debt over one of Britain’s top hotel chains, the Maybourne/Coroin Hotel Group which included Claridge’s and The Connaught, thanks to a £49.1 million sum provided by 1MDB………………………………………..Full Article: Source

Malaysia’s 1MDB plans ‘robust response’ in debt row with Abu Dhabi sovereign wealth fund

Posted on 20 June 2016 by VRS  |  Email |Print

Troubled Malaysian state investment vehicle 1Malaysia Development Berhad (1MDB) said on Friday (June 17) it plans a “robust response” to an Abu Dhabi sovereign wealth fund’s move to seek US$6.5 billion (S$8.8 billion) via international arbitration of a debt dispute.
The Abu Dhabi fund, International Petroleum Investment Co (IPIC), said on Tuesday that it had submitted a request to the London Court of International Arbitration to intervene in the row. “1MDB will file a robust response to the RFA (request for arbitration)”, 1MDB, or 1Malaysia Development Berhad, said in a brief statement………………………………………..Full Article: Source

Libya case against Goldman shines rare spotlight on powerful bank

Posted on 20 June 2016 by VRS  |  Email |Print

UK court hears of hotels and entertainment on third day of trial in $1bn claim by Libyan fund. It was a week when London’s High Court heard the lurid details about a Goldman Sachs banker procuring prostitutes to develop ties with the Libyan Investment Authority and then fearing for his life when the investments the US bank had sold to the wealth fund turned sour.
The court on Friday was told how the bank paid for staff from the LIA to stay in five-star London hotels and offered them corporate entertainment including football and theatre tickets………………………………………..Full Article: Source

Libya SWF adviser says execs who invested in derivatives were financially “illiterate”

Posted on 20 June 2016 by VRS  |  Email |Print

Top decision makers at Libya’s $67 billion sovereign wealth fund were “illiterate” in terms of investment with little knowledge of the derivatives instruments purchased on the advice of Goldman Sachs, an adviser to the fund told a court on Thursday.
In a closely watched case in the City of London, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the U.S. investment bank from nine disputed trades carried out in 2008. The LIA argues that 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………………………………………..Full Article: Source

Watchdogs exempt sovereign wealth and pension funds from study

Posted on 17 June 2016 by VRS  |  Email |Print

Sovereign wealth funds and pension funds have won a temporary break from tighter regulatory scrutiny, as global watchdogs exempted them from an ambitious study aiming to curb systemic risks from financial institutions that are not banks or insurers.
SWFs — which have grown in number and size in the past decade due to an accompanying spike in commodity prices — have an estimated $7tn in assets under management, according to the Sovereign Wealth Fund Institute, while pension funds manage about $35tn of assets across the globe………………………………………..Full Article: Source

Goldman Sachs was like a ’swarm’ on Libyan wealth fund client, court told

Posted on 17 June 2016 by VRS  |  Email |Print

Goldman Sachs acted “like a swam” on a Libyan sovereign wealth fund client, a witness in a dispute between the bank and the Libyan Investment Authority, told a London court on Thursday.
The bank presented different teams and products to the LIA in 2007 “one after the other and almost relentlessly,” Ali Jallal Baruni, a consultant for the LIA, said in a witness statement distributed to journalists. Baruni claimed Goldman Sachs even introduced the son of Sir Martin Sorrell, CEO of advertising giant WPP, as part of the team………………………………………..Full Article: Source

Libya SWF adviser says execs who invested in derivatives were financially “illiterate”

Posted on 17 June 2016 by VRS  |  Email |Print

Top decision makers at Libya’s $67 billion sovereign wealth fund were “illiterate” in terms of investment with little knowledge of the derivatives instruments purchased on the advice of Goldman Sachs, an adviser to the fund told a court on Thursday.
In a closely watched case in the City of London, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the U.S. investment bank from nine disputed trades carried out in 2008. The LIA argues that 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………………………………………..Full Article: Source

Libya Seeks to Free Up Sovereign Fund But Banks Face Risks

Posted on 16 June 2016 by VRS  |  Email |Print

The Libyan Investment Authority isn’t only pursuing its interests through legal action against top global financial firms, but also lobbying the United Nations Security Council to soften an asset freeze on its funds to halt their declining value.
The LIA’s actions are sending a clear message to financial institutions eager to engage in business with the multi-billion dollar fund: tread carefully, said compliance and sanctions experts. Not only has the LIA become very litigious, but the licenses to transact with the conflict-torn and financially-sanctioned African nation are hard to get and quite restrictive, they said………………………………………..Full Article: Source

Abu Dhabi fund IPIC to pursue 1MDB claims in arbitration court

Posted on 16 June 2016 by VRS  |  Email |Print

Abu Dhabi sovereign-wealth fund International Petroleum Investment says it is pursuing arbitration in a London court for about $US6.5 billion ($8.8bn) it says it is owed as a result of a dispute with Malaysian state investment fund 1Malaysia Development Berhad.
The dispute erupted in April, when IPIC accused 1MDB of reneging on key provisions of an agreement last year that saw it extend a billion-dollar loan to 1MDB and assume responsibility for interest payments on some of its debt. IPIC later said it would only make those payments as an official guarantor on two 1MDB bonds and that it intended to pursue repayment from Malaysia’s Ministry of Finance………………………………………..Full Article: Source

Malaysia PM Najib denies abusing power in court filing, seeks to dismiss 1MDB-related lawsuit

Posted on 16 June 2016 by VRS  |  Email |Print

Malaysia’s embattled Prime Minister Najib Razak denied accusations of misuse of power, graft and interference in official investigations of troubled state fund 1MDB, according to documents filed in response to a lawsuit, Bloomberg reported on Tuesday.
The report said Najib is seeking to dismiss the case, which was filed in March and led by Mahathir Mohamad, who was Malaysia’s prime minister from 1981 to 2003 and has been a fervent critic of Najib. In the suit, Mahathir, who has repeatedly said he wants Najib removed from office, alleges Najib “actively and deliberately” tried to derail investigations into 1Malaysia Development Bhd. and into allegations that funds from 1MDB ended up in his personal accounts, the report said………………………………………..Full Article: Source

Abu Dhabi seeks $6.5 bn in row with Malaysia’s 1MDB

Posted on 15 June 2016 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund is seeking $6.5 billion from Malaysia’s troubled state investment vehicle 1MDB, as it moves to settle a debt dispute through international arbitration.
The fund, International Petroleum Investment Co (IPIC), on Tuesday said it had submitted its request to the London Court of International Arbitration. In April, 1MDB, or 1Malaysia Development Berhad, defaulted on $1.75 billion in company bonds after missing an interest payment of $50 million………………………………………..Full Article: Source

Goldman Says Libya Suffering From Buyers Remorse Over Bad Trades

Posted on 15 June 2016 by VRS  |  Email |Print

The Libyan Investment Authority is using Goldman Sachs Group Inc. as a scapegoat to recover more than $1 billion the sovereign-wealth fund lost during a period when global markets were seizing in the 2008 credit crunch, the investment bank’s lawyer said.
Robert Miles, Goldman Sachs’ lawyer, made his opening arguments to the London court a day after the multi-billion dollar sovereign-wealth fund said the New York-bank used vacations and prostitutes to push unsophisticated Libyan officials into risky bets before the global financial crisis………………………………………..Full Article: Source

Former Goldman Sachs executive denies paying for ‘improper entertainment’ in LIA case

Posted on 15 June 2016 by VRS  |  Email |Print

A Goldman Sachs executive at the centre of a $1.2 billion (£850 million) claim brought by Libya’s sovereign wealth fund has denied allegations he paid for “improper entertainment” for himself and the younger brother of a key decision-maker at the fund on a business trip.
Youssef Kabbaj, a former Goldman Sachs sales team executive, also said that all his expenses linked to the Libyan Investment Authority (LIA) had always been signed off by at least two senior partners at the bank and fully reimbursed by Goldman. In a trial at London’s High Court that began on Monday, the $67 billion LIA is attempting to claw back $1.2 billion from nine trades it carried out with Goldman Sachs in 2008………………………………………..Full Article: Source

Libyan Fund Alleges Goldman Took Advantage of Its Unsophistication

Posted on 14 June 2016 by VRS  |  Email |Print

Libya’s sovereign-wealth fund, in a long-awaited trial that started Monday, alleged Goldman Sachs Group Inc. took advantage of its lack of financial sophistication to draw it into losing trades. Emails in the case show Goldman executives saying that the Libyan fund had little experience in finance. “They are very unsophisticated—and anyone could ‘rape’ them,” one executive wrote in 2008.
In another internal email exchange, a Goldman executive wrote to a colleague that “you just delivered a pitch on structured leveraged loans to someone who lives in the middle of the desert with his camels.”……………………………………….Full Article: Source

Goldman Sachs exploited Libya fund, court told

Posted on 14 June 2016 by VRS  |  Email |Print

A Goldman Sachs banker described officials at Libya’s sovereign wealth fund as so unsophisticated that “anyone could ‘rape’ them”, it was claimed in the London’s High Court, on the first day of a $1bn legal case being brought against the financial group.
The court on Monday heard claims by the Libyan Investment Authority that Goldman had exploited the wealth fund’s limited experience in 2008, to force it into risky and ultimately lossmaking derivative trades………………………………………..Full Article: Source

Goldman Sachs set for revealing Libya trial

Posted on 13 June 2016 by VRS  |  Email |Print

It is a $1bn blockbuster legal battle pitting Goldman Sachs against Libya’s sovereign wealth fund, featuring colourful allegations of a “lavish trip to Morocco”, gifts, “heavy drinking and girls”. It promises to give a rare glimpse into the bank’s dealings with one of world’s richest investors, and into the behaviour of its bankers before the credit crunch.
And, on Monday, it will finally kick off at London’s High Court. In a lawsuit, the Libyan Investment Authority claims that Goldman exploited the sovereign wealth fund’s limited financial experience in 2008, forcing it into risky and ultimately lossmaking derivative trades. Goldman denies this………………………………………..Full Article: Source

Libya SWF trial against Goldman Sachs set to start at London High Court

Posted on 13 June 2016 by VRS  |  Email |Print

Libya’s $67 billion sovereign wealth fund will go head-to-head with Goldman Sachs in London’s High Court this week over claims that the U.S. investment bank exploited the fund by encouraging it to make risky and ultimately worthless investments.
In what will be one of the most closely watched cases in the City of London, the Libyan Investment Authority (LIA) is attempting to claw back $1.2 billion from the Wall Street giant from nine disputed trades carried out in 2008………………………………………..Full Article: Source

Government May Tweak Investment Norms for Infrastructure Fund

Posted on 10 June 2016 by VRS  |  Email |Print

Government is looking to tweak the investment norms for NIIF (National Investment and Infrastructure Fund) to allow investors to co-invest in this sovereign wealth fund as also in the individual projects.
The norms would be tweaked within the broad framework of the investment to take into account suggestions from the domestic and overseas investors, Economic Affairs Secretary Shaktikanta Das said. Das also expressed hope that the retail inflation would remain at 5 per cent this fiscal, in line with the RBI’s projection, and help India develop into a low-cost economy in terms of lower interest rates, transaction costs and logistics costs………………………………………..Full Article: Source

Temasek tenders NOL shares; CMA offer now unconditional

Posted on 10 June 2016 by VRS  |  Email |Print

Neptune Orient Lines (NOL) on Friday said the offer from France’s CMA CGM is now wholly unconditional, after NOL’s majority shareholder Temasek Holdings tendered all shares in the acceptance of the offer. This means the acceptance condition of the takeover has been met.
CMA CGM now owns 78.07 per cent of all NOL shares, and does not intend to preserve the listing status of NOL. It offered NOL shareholders the offer price of S$1.30 per share, in cash. Shares of NOL closed unchanged at S$1.30 on Thursday………………………………………..Full Article: Source

No 1MDB profits sent to Singapore banks: regulator

Posted on 09 June 2016 by VRS  |  Email |Print

Singapore said none of the banks in the city-state had received US$3 billion from Goldman Sachs Group Inc related to a bond sale by 1Malaysia Development Bhd (1MDB). The comment was made “in response to media queries,” the Monetary Authority of Singapore said in a one-line statement yesterday. It did not name any media organizations.
The statement came after the Wall Street Journal on Tuesday reported that Goldman Sachs had wired US$3 billion of proceeds from a bond issue it arranged for 1MDB in 2013 to an account controlled by the fund at the Singapore branch of a small Swiss private bank………………………………………..Full Article: Source

12 Swedish big shots have been blacklisted by Norway SWF

Posted on 09 June 2016 by VRS  |  Email |Print

The enormous Norwegian sovereign wealth fund have blacklisted twelve Swedes. In essence, this means that the fund opposes them as members of the board of the companies the fund owns shares in. According to the Swedish daily Dagens Industri, the fund has in 2016 voted against twelve Swedes as members of the board.
The fund, commonly referred to as The Oil Fund, manages the wealth produced by the Norwegian oil. It is absolutely huge: On average, the fund owns approximately 1.3 percent of the world’s listed companies. Over 700 billion dollars are managed by the fund, and its Swedish investments amount to approximately 15 billion dollars………………………………………..Full Article: Source

Senate moves to amend Nigeria Sovereign Wealth Investment Authority Act

Posted on 09 June 2016 by VRS  |  Email |Print

Senate Committee on Finance on Wednesday said it will amend Sovereign Wealth Investment Authority Act in order to widen the scope of activities of the agency. Speaking at stakeholders public hearing in Abuja, Chairman of the Committee, Senator John Owan Enoh stated that as an agency that was strategic to the economic growth of the nation, the 8th Assembly through the Committee has taken cognizance of areas in the Act that needs immediate legislative intervention.
He identified those areas to allowing the Sovereign Wealth Fund, an agency of the Authority to go into full blown investment………………………………………..Full Article: Source

Tencent Holding WeBank Denied Foreign Fund Raising

Posted on 08 June 2016 by VRS  |  Email |Print

WeBank, a Shenzhen-based Internet bank owned by Tencent Holding Ltd., has been restricted to get funds from foreign investors including the US private Warburg Pincus and the Singapore state-owned investment firm Temasek Holdings Pte Ltd., after the country’s banking regulator expressed serious concerns over the foreign ownership. The reason for blocking investment is still not clear.
In April 2016, it raised nearly $4.5 billion in funds, which gave the financial arm valuation of nearly $60 billion. Ant Financials domestic investors include various insurance companies and China’s sovereign wealth fund………………………………………..Full Article: Source

1MDB Defends Liquidity Position After Moody’s Rating Withdrawal

Posted on 08 June 2016 by VRS  |  Email |Print

Malaysia’s troubled state investment company 1Malaysia Development Bhd. defended its liquidity position after Moody’s Investors Service withdrew the rating for one of its bonds. Moody’s said Tuesday it withdrew the rating on 1MDB Energy Ltd.’s 5.99 percent $1.75 billion debt “for its own business reasons,” according to a statement, pointing to its website for its policy on such moves.
“1MDB reiterates that its liquidity position is strong and the company remains focused on execution of its successful rationalization plan,” the company said in a statement Wednesday………………………………………..Full Article: Source

Goldman Sachs fights $1bn court battle against Libya’s wealth fund

Posted on 06 June 2016 by VRS  |  Email |Print

Goldman Sachs is braced for a $1bn court battle this month, facing dramatic claims in the High Court that it took advantage of naïve leadership at the Libyan Investment Authority (LIA) to rip off the sovereign wealth fund.
The LIA claims that its former management, in the Gaddafi era, lacked any financial knowledge and so were taken advantage of by senior staff at Goldman Sachs, losing more than $1bn in a series of nine derivatives trades in 2008 which gave Goldman hundreds of millions of dollars in profit………………………………………..Full Article: Source

SSEK Advises GIC on Indonesian Investment in Logistics Sector

Posted on 02 June 2016 by VRS  |  Email |Print

SSEK Legal Consultants has acted as Indonesian counsel to GIC, Singapore’s sovereign wealth fund, on its partnership with PT Mega Manunggal Property Tbk, an Indonesian publicly listed logistics developer and one of Indonesia’s leading modern logistics companies, to develop logistics warehouses in Indonesia. This is GIC’s first investment in Indonesia’s logistics sector.
Partner Denny Rahmansyah led the SSEK team advising on the deal. Allen & Gledhill acted as foreign counsel for GIC………………………………………..Full Article: Source

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