Goldman's Paperwork Flub

NexusFi · 2011-06-26T04:19:50-04:00

BY LIZ RAPPAPORT Goldman Sachs Group Inc. had no standard contracts in place to protect itself when it made $1.3 billion in options trades for Libya's sovereign-wealth fund controlled by Col. Moammar Gadhafi, according to people familiar with the situation. While such contracts aren't required by law, they are routine operating procedure at banks and securities firms around the world when structuring derivatives transactions in opaque markets such as credit-default swaps, futures and options. The …

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Updated June 26, 2011

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Goldman's Paperwork Flub

June 26th, 2011, 04:19 AM	#1 (permalink)
GridKing San Diego, CA USA Elite Member Experience: Intermediate Platform: NinjaTrader Trading: ES Posts: 3,630 since May 2011 Thanks Given: 584 Thanks Received: 881	BY LIZ RAPPAPORT Goldman Sachs Group Inc. had no standard contracts in place to protect itself when it made $1.3 billion in options trades for Libya's sovereign-wealth fund controlled by Col. Moammar Gadhafi, according to people familiar with the situation. While such contracts aren't required by law, they are routine operating procedure at banks and securities firms around the world when structuring derivatives transactions in opaque markets such as credit-default swaps, futures and options. The documents usually include crucial information such as the financial and pricing data each party must provide to the other, what happens if either side reneges on its obligations ... Goldman's Paperwork Flub: Lack of Basic [AUTOLINK]Contracts[/AUTOLINK] With Libya Deepened Conflict - WSJ.com

Last Updated on June 26, 2011