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NBC News investigative producer for special projects
Moammar Gadhafi’s regime controls $32 billion in liquid assets around the world, including hundreds of millions of dollars invested in U.S. banks, according to a confidential cable written by the U.S. ambassador to Libya last year. The leaked diplomatic message was distributed through WikiLeaks.
The same cable reported that Libya had been approached by two men accused of running huge Ponzi schemes, Bernard Madoff and Allen Stanford, but had resisted offers from them to invest Libyan funds with them. Madoff is serving time in a U.S. prison; Stanford has not been convicted of a crime and is awaiting trial.
The cable is entitled "Technology of Tourism: Head of Libyan Investment Authority Discusses Opportunities for US Business in Libya," and was written Jan. 28, 2010, by Ambassador Gene A. Cretz, after a meeting with Mohamed Layas, the head of the LIA, Libya’s sovereign wealth fund. Sovereign wealth funds are the vehicles used by Middle East and other governments to invest oil wealth. The LIA, according to U.S. intelligence, is controlled by Gadhafi's regime.
"Layas asserted that the LIA has USD 32 billion in liquidity, and noted that several American banks are each managing USD 300-500 million of the LIA's funds," according to the cable.
Cretz also quotes Layas as saying, "We have USD 32 billion in liquidity, mostly in bank deposits that will give us good long-term returns." Layas explained that beyond the hundreds of millions of dollars in U.S. banks, not further identified, Layas said the LIA has extensive investments in the United Kingdom.
Cretz wrote that Layas "said that the LIA has an office in London and preferred doing business there rather than in the United States, due to the ‘ease of doing business’ in the UK and relatively 'uncomplicated tax system.' He noted that the LIA's primary investments are in London, in banking and residential and commercial real estate."
The LIA’s best-publicized investment was in a Canadian oil company, Verenex. Libya paid $316 million for the company in 2009.
However, the Libyan claimed he had avoided being involved in two Ponzi schemes, those run by Madoff and Stanford. Layas denied press reports that LIA had invested $100 million with Stanford, but admitted being approached by both Stanford and Madoff.
"Stanford had approached the LIA in the middle of his crisis, offering a 7-8% share in his investment scheme, but Layas had refused," Cretz wrote. "Layas also mentioned having been previously approached by Bernard Madoff about an investment opportunity, 'but we did not accept’."
Other diplomatic cables on Libya are described in this New York Times article, "WikiLeaks cables detail Qaddafi family's exploits."
Freeze the assets.
The US won't do it, too much lost revenue for banks and their corrupt executives.
the temporary government that takes over will have to request that those assets are frozen, like what happened in Egypt with the military assuming temporary control.
When large sums of money are involved, people will always make exceptions to the company they will keep. Dirtbags.
The good is since he didn't lose the money.
Maybe when this is all over the Libyan people can get it back.
The banks may get it but not the people. Bank of America took billions from the Iranian people when they kicked out our stooge Shah.
that is because the government who took over control wasnt internationally recognized.
So....
even a nutjob like Gadhafi - could smell a rat... too bad nobody in the US could...
Apparently Gadafi was smarter than the Feds and knew that Madoff was a con-man.
Perhaps Gadafi had more common sense then the intellects who work in the US banks.
If you think the feds, big banks, wall street and their government don't know what they are doing, for get it. These are the biggest and most ruthless thieves in the world. Ignorance may look a lot like evil but they are not the same. This gang is not ignorant.
Frank Morton-2536216 your punctuation and grammarare all wrong. for get it? and in a prior post your use of a comma is unnecessary.
Smarter than the New York Mets.
Lot of good the $32 billion will do him and his sons - he will likely end up like Mussolini or Hussein and his clan.
Madoff probably looked like an punk amateur to Gadhafi.
BTW shouldn't someone,somewhere freeze those funds -like right now?? It looks like the end is near for another dictator and the people's money should be protected. The latest news is that cities are falling to the protestors and the military is backing away from the regime in another country. Did anyone notice that these people want the basic rights of ---a democarcy??
"...someone freeze his funds...?" Whiskey Tango Foxtrot?!
When did USA become the world's police and embezzlers?
What happened to the $10B USA forces looted in Baghdad?
What happened to the $10B USA forces looted in Panama?
Remind me again what the Spanish America War was about?
Are we doomed to bleed out a TRILLION DOLLARS A YEAR,
so USA forces can loot foreign dictators for global bankers?
I want my Cold War Dividend, Jagammit!
Too bad he didn't invest in Madofs scheme cause he would have cut his head off when he lost his money.
Not to be insensitive, but isn't Bernie Madoff Jewish? Why would a devout Muslim want to deal with a believer of Judaism?
Huh? Madoff could have been entirely a non-believer, but of Jewish descent. Many Jews are of a separate race, do you realize? OTOH, were I a believer of Judaism, and participated in Temple activities, I'd be labeled a Jew but I expect until the blood commingled, I'd be an outsider.
Jewish is a religion not a race, most Jews are mixed Semite-Slav, but using the race card pays better than telling the whole world Israel is a just another nut-job religious theocracy, no different from Iran. Oh, I may have offended some 'race'. Tell me, which race would that be, ...Semite Arab or Turkic Slav?
Also not only he knew but 2 major euro banks refused to deal with madoff but no one spread the word to the public. Ok, let's take a hint and watch who is backing these schemes. It's time to reflect on what regulations were 'adjusted" to make this possible. If the guys in the LIA knew and the euro banks knew why didn't the US administration know 8 years ago?
John because chase and probably alot of others made hundreds of millions and you know W wasnt about to keep anybody honest
Yeah jgplol it was GWBs fault. you ass
The issue I have with this is that investment portfolio's are supposed to be confidential under federal law so how come Wiki leaks gets away with disclosing that? If the Libyan government invested the money legitimately then the investments weren't illegal.
It is also very ironic that leaders in countries where they
decry the US way of life turn around and invest their
funds in the very system. If you dug deep enough,
I can bet the list of people invested in US banking
system reads like a who's who of US haters.
Regarding Madoff, one can see that his statements
didn't add up. Every, and I mean, every fund and
investment vehicle has booms and busts. Unfortunately
many believed returns that were too good to be true.
Ghaddafi should be put in charge of the SEC. He clearly was up to speed on Madoff and Stanford while the World's regulators (not just the SEC) were asleep at the wheel. Bless 'em!
He should also write a bestseller - "the Ghaddafi method to minting billions". Notice, he doesn't own US real estate. Plenty in Venezuela and Zimbabwe though. Follow the smart money?.................
If I wanted to move $10,000 the Feds want to know who, what and where it came from. Move hundreds of millions or billions and no questions asked. Go figure.
Maybe he'll lend the US some money so we can give it away.
Freeze the assets.....
So much for the USA´s criticisms of Gadhafi and his murderous handling of his peoples´uprisings. C´mon Hillary, don´t you think that Libya´s assets should be frozen??
Moammar Gadhafi is a despot, demented moron, and murderer -- an international shame for the 21st century -- and should be executed quickly by Libya’s armed forces even for the sake of saving their skins if not solely to save Libyan lives, while at the same time taking over and installing a temporary military government that over a period of 2 years could bring things back to normal. Needless to say, in the process, the armed forces there should be purged of any of Gadhafi´s cronies so that the "revolution" continues to the benefit of the Libyan population.
The only political system that will last forever will be a western style-type democracy. Apparently this truth has been realized by a whole new generation of Libyans educated within and outside of that country. The internet has helped bridge the technological gap and to come to full realization that their young lives were meaningless and had no future with a corrupt animal like Gadhafi in power.
However, Libyans will not have freedom and dignity for a long time. They have to work at it, together with their armed forces that must see their role as only temporary -- 2-3 years -- until the country´s new institutional basis is set up so that political parties can prosper in peace and without fear. Once this is achieved, elections must be convened so that regional-party political representatives can be elected nationwide with a view to integrating a National Assembly to draft a new Constitution for the country. This would be the beginning of a new future for the Libyan population. Meanwhile, the military government should prosecute Gadhafi so that the death penalty can be brought to bear on this god forsaken animal. His own and family assets, in general, should be confiscated in Libya as well as outside of the country. But more than anything, the world must congratulate the Libyan population for having acted with such courage, with their hearts and minds, to try to topple a ruthless and corrupt regime from the face of the earth.
Needless to say many more countries will follow, not only in the Middle East but also in Latin America, especially in the case of those with presidential lunatics trying to emulate the Cuban political system which under the noses of the USA and the rest of the Americas has failed miserably.
I agree. Sort of a "storm the bastille" on a worldwide scale.
"The only political system that will last forever will be a ... democracy...."
Well, now we know where WalMart stored all those surplus cuckoo clocks.
The only political system that will last forever is Corporate-State Socialism.
You want something done? Move 500,000 peasants? No problem. Done.
Its starting in WI and spreading to IN and OH as we speak
Well the man may be crazy, but apparently he's not stupid. Let's hope we can shepard this wild ride to a swift conclusion.
The man has hung around far too long and will probably try to take as many as he can with him when he goes.
Now folks how much does the american government have? They don't have a penny to there name. Financially Libya is much better off. They could actually feed themselves. How long do you think the usa could hold on to 32 billion dollars free and clear. They don't have the federal reserve in Libya either. Do you people get the picture.
He might look dump and stupid , but at least he did't get taken like the jews.
If Ghaddafi is found dead in a ditch somewhere, what happens to his money? Will his son get it? Will Libya's new regime (whatever it may be) be able to lay claim to it? Will the banks simply dig their craw's in and not let go? How will it affect U.S. finances?
That's the story I want to read. Any international economics experts on the vine want to take a crack at my questions?