Goldman Sachs faces the prospect of legal action from Greece over fraudulent financial deals 14 years ago that would allegedly cause the debt crisis later.
A leading Greek adviser offered to help Athens recover some of its vast profits made by the investment bank. A former Goldman banker has written to Greece’s government to advise that it has a chance of clawing back some of the hundreds of millions of dollars it paid Goldman to secure its position in the euro.
This proposal was made after Greece and its creditors nailed down a last-minute deal which will keep the heavily indebted Balkan country in the euro bloc.
Goldman Sachs is accused of making as much as $500 million from swap transactions. The bank denies that figure and the information has not been proved right. The banker who executed those deals was reportedly paid up $12 million in a year.
Now Jaber George Jabbour, who formerly designed swaps at Goldman, has told the Greek government in a formal letter that it could “right historical wrongs as part of [its] plan to reduce Greece’s debt”.
