This is quite a shocking allegation, but American multinational banking firm Goldman Sachs may have done something that Jordan Belfort did during his heydays at the Wall Street.
In a hearing at the London High Court, Libya’s sovereign wealth fund – Libyan Investment Authority (LIA) – has accused the bankers of paying for prostitutes, private jets and five-star hotels and holding business meetings on yachts all in order to win a business during the Gaddafi regime in 2006.
The business was worth USD 67 billion.
Eventually, the fund lost USD 1.2 billion on the risky trade. Goldman is accused of making “eyewatering” profits of more than $200m from the same trades.
Libya had sued Goldman in 2014 claiming that the bank “took unfair advantage” of then Libya’s bankers who were not selected on merit.
One can gauge the seriousness of the Libyan allegation from the fact that Goldman was described as “bank of mafiosa” by a senior Libyan official.
In its defence, Goldman claims that the “LIA was the victim of an unforeseen financial depression, not of any wrongdoing by the bank”.
According to reports, the trial would last for eight weeks at least and might hurt the bank’s reputation besides creating a big problem for CEO Lloyd Blankfein.
But the case has brought into the spotlight the kind of methods powerful companies use to get businesses or keep their staff happy.
Some redditors posted their own experiences of having a “gala time” paid for by their companies.