Goldman faces possible legal action from Greece over complex financial deals in 2001 that many blame for its subsequent debt crisis. Goldman swapped debt issued by Greece in dollars and yen for euros which were priced at a historical exchange rate that made the debt look smaller than it actually was. The swaps reportedly made about 2 per cent of Greece’s debt disappear from its national accounts. Goldman is said to have made as much as $500m from these transaction referred to as “swaps”, but denies these claims. Former swaps designer at Goldman Jabbour, has told the Greek government in a formal letter:
Right historical wrongs as part of [its] plan to reduce Greece’s debt.
Based on publicly available information, he believes the size of the profit Goldman made on the transactions was unreasonable. Scrutiny and analysis of the documents and email exchanges could give Greece grounds to seek compensation and assess if the deals were executed for the sole purpose of concealing the country’s debts.