In the LiveJournal feed, many are mocking the situation around the loss of the Libyan Sovereign Fund, prompted by Goldman's recommendation.
Firstly, should be noted, what the loss is about 1% all the fund's money.
Secondly, people run the fund , not far from financial markets , and well understanding , what is buying options. Think, which was discussed in advance with the fund.
Thirdly, market since 2008, when the Foundation gave money to Goldman( it's not clear whether to control , or, it was a recommendation) fell for more 50%. If it were stocks, then they would not have had a sweet fate either.
The details of the relationship are not clear. Think, that Godman loaded everything with options, also sounds weird.
Besides, what prevents from exercising options and converting them into shares?!
This is a common situation, when a client loses money on referrals and then confusion begins.
Understandably, that Goldman did not want to lose a rich client and offered ways to compensate for losses.
I'm not a big fan of Goldman, but I don't see anything special here. Here are the previous schemes with subprime illiquid assets, this is actually a crime.
P.S. It would be interesting to know if Zarti made a reverse transaction on another account, where the profit was 98% :))))
