According to an official document published by Global Witness, the French bank held the lion share of Libyan funds allocated to structured products…<\/p>\n
\nLibyan Investment Authority (LIA), which managed $ 53.3 billion in assets in 2010 is said to have invested $ 3.45 billion in structured products. Soci\u00e9t\u00e9 G\u00e9n\u00e9rale has received more than half of those funds dedicated to structured products, about $ 1.8 billion.<\/p>\n
The French bank did not really manage to grow that capital:<\/p>\n
– A billion dollars was invested in the product Soc Gen Europe Meduim. At the end of the first half of 2010 the value of this investment was 284.5 million dollars, a 71.55% loss.<\/p>\n
– $ 500 million had been invested on the product Soc Gen Strategic Equity Fund Codeis. At the end of the first half of 2010 the value of this investment was $ 567 million, an increase of 13.4%.<\/p>\n
– And finally $ 300 million had been invested on the product Soc Gen -Cross Roads 5Y Link Notes. At the end of the first half of 2010 the value of this investment was $ 204.3 million, a 32% loss.<\/p>\n
In total, $ 1.8 billion managed by Soci\u00e9t\u00e9 G\u00e9n\u00e9rale was worth only 1.055 billion, resulting in a capital loss of 41%! As a result of international sanctions given to Libya, the funds are blocked and continue to be managed by the bank until further guidance from the European Union on this issue.<\/p>\n
Several other banks also welcomed Libyan funds for investments in structured products. Deutsche Bank, Credit Suisse, Commerzbank, and JP Morgan have each raised nearly $ 200 million, which were invested without better success.<\/p>\n
In addition, $ 300 million had been invested in a CPPI fund<\/a> at Lehman Brothers, the LIA does not seem to have been reimbursed.<\/p>\n