Ex-Libyan President Moammar Khadafy stashed $1.1 billion of government assets in 2 New York City-based banks, The Post learned.  Goldman Sachs is holding $605 million, and JPMorgan Chase is holding $513 million, according to U.S. Treasury's OFAC records, provided to The Post.

Rounding out the list are:  Wells Fargo with $6mn and Bank of America with $838,000 according to the Libya Sanctions Blocked Assets Report.  The report doesn't show any of the banks holding personal funds for Khadafy or his son, Seif al-Islam Khadafy.

All told, some $37 billion in assets - including property and investments - were frozen in the U.S. in February after the U.N. imposed sanctions on Libya.

The State Department last week said it had released $1.5bn in Libyan funds, with $500mn to go to U.N. agencies for humanitarian support, $500mn going to pay fuel costs, and $500mn to be held in a special fund to be used for health, education and social services.

There's been little comment from the above major players.  A Wells Fargo spokesperson, however, said that 7 Libyan accounts and 30 transactions had been frozen and that the bank had not been approached to unfreeze them.  The Bank of America also said it had not been contacted by the government about releasing the money.

Jonathan Schanzer, a former Treasury official and currently VP for research at the Foundation for Defense of Democracies, said the U.S. would likely hold onto most of the Libyan assets for now, noting:  "It's not in the interest of the U.S. to be forking over billions of dollars to the rebels."  He added, "They want to wait to see how the funds are going to be used, and they want to see if they're going to be used appropriately.

For further details, go to:    [NYPost, 8/28/11, Khadafy-Government Assets .."]