Libya Sues Goldman Sachs Over Derivatives Trade Gone Bad

In a growing list of Over The Counter (OTC) derivatives trades gone bad, Libya’s sovereign investment fund sued Goldman Sachs Group Inc (NYSE:GS) in London’s High Court last week, saying it lost more than $1 billion on now worthless derivatives while Goldman walked away with a profit of $350 million, according to a report in the New York Times. Unlike exchange traded derivatives, which are standardized and clearly describe the risk and contents of the derivative package in question, OTC derivatives, long unregulated and one reason for the 2008 global stock market crash, have been accused of being opaque and confusing…