More Trouble at The Carlyle Group

[toxic]

The stock of Carlyle Capital (part of The Carlyle Group) dropped 60% yesterday, before trading was suspended.

:rofl

The Carlyle Group is the infamous investment fund of various Neo-Con persons like Bush's, Rumsfeld, Wolfowitz, et al.

http://biz.yahoo.com/ap/080307/britain_carlyle_capital.html

Lenders to Carlyle Capital Corp. Ltd. have begun to liquidate securities held in its $21.7 billion portfolio and the fund said Friday it was considering "all available options."

The margin calls against Carlyle portend an ominous development one day after the fund was served with default notices, convulsing already skittish markets.

Carlyle Capital said it received additional margin calls and default notices Thursday from banks that help finance its portfolio of residential mortgage-backed securities. It said it may not be able to meet the increased requirements.

The fund said it was unable to meet margin calls from four banks Thursday, raising fears that its entire portfolio could be unwound. Securities have dropped sharply in recent weeks as banks pull back on their lending, forcing investment vehicles and funds like Carlyle to dump assets.

In Friday's statement, Carlyle Capital said it had received "substantial additional margin calls and additional default notices from its lenders." It also said that lenders were selling off securities held as collateral.

[Capitalist]

The stock of Carlyle Capital (part of The Carlyle Group) dropped 60% yesterday, before trading was suspended.

:rofl

The Carlyle Group is the infamous investment fund of various Neo-Con persons like Bush's, Rumsfeld, Wolfowitz, et al.

http://biz.yahoo.com/ap/080307/britain_carlyle_capital.html

Lenders to Carlyle Capital Corp. Ltd. have begun to liquidate securities held in its $21.7 billion portfolio and the fund said Friday it was considering "all available options."

The margin calls against Carlyle portend an ominous development one day after the fund was served with default notices, convulsing already skittish markets.

Carlyle Capital said it received additional margin calls and default notices Thursday from banks that help finance its portfolio of residential mortgage-backed securities. It said it may not be able to meet the increased requirements.

The fund said it was unable to meet margin calls from four banks Thursday, raising fears that its entire portfolio could be unwound. Securities have dropped sharply in recent weeks as banks pull back on their lending, forcing investment vehicles and funds like Carlyle to dump assets.

In Friday's statement, Carlyle Capital said it had received "substantial additional margin calls and additional default notices from its lenders." It also said that lenders were selling off securities held as collateral.

and your point is?

[toxic]

and your point is?

Even Neo-Cons are considered Gentiles and treated appropriately on Wall Street.

[toxic]

Carlyle's failure will aggrevate the subprime problem.


http://biz.yahoo.com/ap/080310/britain_carlyle_capital.html

Carlyle Tries to Hold Off Lenders
Monday March 10, 6:58 am ET
Carlyle Capital Corp. Ltd. Seeks Standstill Agreement With Lenders Holding $16B


LONDON (AP) -- Carlyle Capital Corp. Ltd. is attempting to convince lenders holding $16 billion in securities not to liquidate the company's remaining collateral, it said Monday, following an intense round of talks.

The listed mortgage-bond fund managed by private equity firm the Carlyle Group failed to meet margin calls with four banks last week, raising fears that its entire portfolio recently valued at $21 billion could be sold off. A collapse at Carlyle would eat away at the value of fixed-income securities, which have already dropped sharply as banks pull back on their lending, and force asset sales.

On Friday, Carlyle Capital said it had received "substantial additional margin calls and additional default notices from its lenders." It said lenders were selling off securities held as collateral.

Carlyle Capital was considering "all available options," it said.

"While these talks continue, the company has discussed and requested a standstill agreement whereby its lenders would refrain from foreclosing and liquidating their collateral, and we are awaiting responses," Carlyle said.

Shares in the fund, which trade on Euronext Amsterdam, were suspended Friday pending a further statement. The stock closed down Thursday nearly 60 percent at $5.00 (3.24 euros).

Carlyle Capital had leveraged $670 million in equity 32 times to finance a $21.7 billion portfolio of highly rated mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae.

The company, to establish financing for the deals, entered into repurchase agreements with banks in which it would post the mortgage securities as collateral in exchange for cash.

If the value of the security held as collateral falls, the lender has the right to ask for more collateral -- a "margin call" -- to secure the loan.

If the borrower does not meet the margin call by putting up more collateral, the lender may sell the security.

[jim]

The bubble had to burst somewhere. It is like the old fable about the frog that tried to blow himself up to the size of an ox:rooster:zen:lmao