Carlyle Capital On Brink Of Collapse

[tekisui]

LONDON -

Carlyle Capital stood on the brink of collapse on Thursday as lenders were expected to take possession of all the investment fund's remaining assets after failing to reach an agreement on $16.6 billion of debts. Hopes that its parent company, the Carlyle Group would come to the rescue have also failed to materialize.

Shares in the Guernsey-based investment fund plummeted 70.4%, or 1.97 euros ($3.07), to 83 euro cents ($1.29), in Thursday morning trading on the Amsterdam Euronext exchange, after the company said it expected its lenders to take possession of all its remaining assets because it had failed to reach a "mutually beneficial agreement" on $16.6 billion of debt. The company has received margin calls totaling $400 million on its portfolio of U.S government agency residential mortgage-backed bonds, as risk aversion has spread well beyond subprime assets.

Just a week agoCarlyle Capital (other-otc: CARYF - news - people ) warned the market that it had begun to receive default notices after getting margin calls for additional collateral from lender banks. All along, Carlyle Capital had warned that the risk of repossession remained. But there were hopes that Carlyle Group, the private equity firm that launched the fund last July, would step in. The parent company has already provided an unsecured credit facility worth $150 million to the fund, and has said it was considering all options.

continued at link: http://www.forbes.com/markets/equities/2008/03/13/carlyle-capital-liquidate-markets-equity-cx_vr_0313markets07.html

[underpants]

1. Well thank GOD we don't have bozos like this in charge of US

Just imagine how bad they might screw things up

:sarcasm:

[Wickerman]

2. GHWB - the gift that just keeps on giving... n/t

[malaise]

3. Is it too early to bring out the drinks and

toast this? :toast: Anything that fuggs up Bushco, Blair et al is reason to celebrate.

[tekisui]

5. Pop the cork!

:toast:

[malaise]

7. LOL

:rofl:

[live love laugh]

4. Hmmm sounds like Arbusto. Which inept Bushie ran Carlyle Capital? n/t

[midnight]

6. This is about the only thing I understand.....

Carlyle Capital stood on the brink of collapse. Don't understand why this powerful co. is having trouble???

[Ilsa]

8. Crooks. They use the law to avoid any responsibility for

the failures of their investments, but certainly will take the profits when they are made (not "earned").

[KharmaTrain]

9. Rut Roh...Watch Out Bain Capital...

Mittens former company was using Carlyle group money to purchase Cheap Channel...giving Poppy's Ranger buddies a nice bail-out. The deal was supposed to have wrapped up on New Years...now it's delayed til at least June and methinks it may never happen. Their money also was involved in the XM-Sirius merger...another deal in limbo.

Sounds like those margin calls aren't getting answered fast enough...

[HughBeaumont]

10. The Pigs have Come Home to Waller . . .

http://journals.democraticunderground.com/HughBeaumont/38

[Tinksrival]

11. I can see why people would toast to this but.......

It still scares the crap out of me cause they are not going down without taking all of us with them. They control the freaking government for cripes sake. (King of the US)Moon and Neil Bush are have been sighted having meetings with the Paraguay government.......why??? What the hell is going on? Cheney meeting with the Saudi's who are heavily invested in Carlyle. Bet their beyond pissed. Who will pay for * and Dicks mistakes?
WE WILL!!! BIG TIME!!! We already are.

[GliderGuider]

12. I agree. Carlyle Capital is symptomatic of much larger problems

We have problems so big they could screw the world up for decades:

Bear Stearns
Ambac
MBIA
700 trillion dollars in unregulated derivatives
US banks' non-borrowed reserves that should be at $43 billion are at negative $15 billion
The muni bond market is essentially frozen.
Yesterday's pledge of $300 billion into the financial markets by the Fed and other world central banks bought one day's reprieve from the stock market slide.
6% of all mortgages in the USA are in default.
Homeowners' equity is below 50% for the first time since WWII
The credit card bubble is set to pop.

While there is a nice touch of schadenfreude in Carlyle's trouble, I suggest saving the champagne -- we might need it for bartering later.

[Peace Patriot]

15. It is so similar to the unregulated stock market gambling in...gulp...1929,

as to make my knees quake. Only this is......

so much BIGGER.

God.

Well, there's one potential plus. If we can't buy anything, or go anywhere--and half of us are in bread lines--we can't keep contributing 25% of the global warming pollution that is killing the planet. A bit of a silver lining anyway.

And WHEN are we going to WAKE UP to the most outrageous thing of all?: Electronic voting, run on TRADE SECRET, PROPRIETARY programming code, owned and controlled by RIGHTWING BUSHITE CORPORATIONS, with virtually no audit/recount controls.

I mean, really.

[tekisui]

13. Very scary.

The economy is crumbling.

[merh]

14. Parguay - the no extradition treaty land

oh, and there is this fresh water that needs to be bottled and exploited - some say water is the next oil.