Goldman Sachs Developed Ties With Gaddafi-era Libya Fund

(RTTNews) - In response to a $1 billion lawsuit filed by the Libyan Investment Authority, Goldman Sachs has admitted adopting various techniques, including an internship, gifts, travel and entertainment to strengthen a strategic partnership with the LIA under the former Gaddafi regime, the Financial Times reported.

The admission in court documents comes amid investigation by regulators in the U.K. and the U.S. over the various measures financial giants deployed to cement their relationships with the $66 billion sovereign wealth fund.

Goldman said in its defense filed at London's High Court last week that none of its actions amounted to improper or unusual influence. According to the investment bank, it always maintained "an arm's-length banker and client relationship."

Goldman was accused by LIA in January of entertaining former high-level LIA officials in Morocco. The extensive expenses of the trip were paid by using a Goldman credit card.

The U.S. Securities and Exchange Commission is also investigating an internship and other perks Goldman allegedly offered to win LIA business.