Last September, Goldman Sachs announced that it was going to issue a $2 billion sukuk.
The investment banking giant dutifully employed a Shariah advisory firm, Dar Al-Istithmar Limited, and went about the business of putting together the financing arrangement.
There was just one problem. Goldman Sachs made one mistake: they trusted the financial jihadis. To make a long story short, some other Shariah scholars have questioned Goldman Sachs’ sukuk arrangement and the whole deal is now in limbo.
We’d like to say we have sympathy for Goldman Sachs’ plight, but let’s face it: they’re the biggest of the big boys and they knew what they were getting into. We also doubt that they learned their lesson. No doubt, a few unfortunate saps at Goldman Sachs will take the fall for this debacle and a new crew will be brought in to take its place to grease the right Shariah scholars to get approval for a new scheme in support of the financial jihad…