Big banks held large Libyan funds

<p>HSBC Holdings Plc and Goldman Sachs Group Inc. are among banks that held funds for Muammar Gaddafi's government investment fund, according to UK advocacy group Global Witness.<br />HSBC held $292.7 million (Dh1.07 million) across ten accounts and Goldman Sachs had almost $44 million in four accounts as of June 30, 2010, according to a document on the Libyan Investment Authority posted on London-based Global Witness's website. The banks refused to confirm if they hold the funds, the group said.<br />The Libyan state fund lost 4.5 per cent in market value from the previous quarter, with total assets dropping to $53.3 billion, according to the report. Gaddafi has retained control of the fund as he resists US-supported attempts to unseat him.<br />Advocate<br />"These are the Libyan people's assets and they have a right to share in them," Gavin Hayman, a director at Global Witness, said from Hong Kong today. The advocacy group is confident about the authenticity of the document and has independently verified it, he said.<br />Governments should force banks and investment managers to disclose the state-owned funds they manage, Global Witness said. The group, founded in 1993, campaigns against natural resource-related corruption and environmental and human rights abuses in countries from Cambodia to Angola.<br />It has more than 60 employees in London and Washington, according to its website.<br />Investments in equity derivatives with a book cost of almost $1.25 billion plunged 98 per cent in market value to $19.9 million as of June 30, according to the report on the state fund.<br />The Libyan Investment Authority's deposits amounted to $19.8 billion, and it held $5.23 billion in shares and $3.39 billion in bonds. About $3.9 billion was invested in structured products with hedge funds and investment banks, including more than $1 billion at Societe Generale SA and $171.5 million at JP Morgan Chase & Co, the document shows.</p><p> </p>

Big banks held large Libyan funds

HSBC Holdings Plc and Goldman Sachs Group Inc. are among banks that held funds for Muammar Gaddafi's government investment fund, accordi...

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