Dirge for the Carlyle Group, anyone?

[JDPriestly]

Carlyle Group is in serious financial trouble. Like everything else the Bush's touch, it has turned to sulfur and brimstone. Does this mean the end of the Bushies? Have they already gutted out the core of the company and invested their share of its assets in safer investments like land rich in resources? Only time will tell.

NEW YORK (AP) -- Carlyle Capital Corp. said it expects creditors to seize all of the fund's remaining assets after unsuccessful negotiations to prevent its liquidation, sending its shares plunging.

The Amsterdam-listed fund shook financial markets last week after missing margin calls from banks on its $21.7 billion portfolio of residential-mortgage-backed bonds. Carlyle's troubles have amplified fears that billions of dollars of depressed mortgage-backed securities will flood the market, reducing their value even further.
. . .

Shares tumbled 94 percent to 18 cents in Amersterdam. The shares have lost more than 98 percent of their value this year and traded at $12 just last week.

More than a year ago, the fund leveraged its $670 million equity

http://biz.yahoo.com/ap/080313/carlyle_group_fund.html

About the Carlyle Group:

company website: http://www.carlyle.com/

A rather sensational expose: http://www.hereinreality.com/carlyle.html

Here in reality maps out the Bush connection to the Carlyle Group:
How will President George W. Bush personally make millions (if not billions) from the War on Terror and Iraq? The old fashioned way. He'll inherit it.
Meet The Carlyle Group


Here is what Wikipedia says:

The Carlyle Group is a Washington, D.C. based global private equity investment firm with more than $74.9 billion of equity capital under management.<1> The firm operates four fund families, focusing on leveraged buyouts, venture & growth capital, real estate and leveraged finance investments. The firm employs more than 563 investment professionals in 21 countries with several offices in North America, South America, Europe, Asia and Australia; its portfolio companies employ more than 286,000 people worldwide. Carlyle has over 1100 investors in 68 countries.

The firm is well known for the dozens of world political figures and luminaries it has employed. Some of these figures, such as George H. W. Bush and his Secretary of State James A. Baker III, have generated controversy stemming from allegations of conflicts of interest.

http://en.wikipedia.org/wiki/Carlyle_Group

[no_hypocrisy]

1. In the classic form of Greek tragedy, * is destroying his father by

using every means available to his as the most powerful man in the world.

[TechBear_Seattle]

2. Dirge? Like the Munchkins with regards to the Wicked Witch of the East, you mean. n/t

[WannaJumpMyScooter]

3. Carlyle is just too hot

they are re-grouping somewhere else, I'll wager

[RUMMYisFROSTED]

4. The big boys bailed out with their golden parachutes long ago.

Just the suckers are going down.

[uponit7771]

5. I wonder how many other banks this has happened to

[muriel_volestrangler]

6. Note the difference between 'Carlyle Group' and 'Carlyle Capital Corp'

The former invested a few hundred million dollars in the latter, and now looks like it's lost it, because the latter is going under. But according to the Wikipedia article you link to, the Group is valued at about $20 billion (from the values put on the CalPERS and Abu Dhabi stakes). They haven't lost that much, in proportion.

[JDPriestly]

7. They are affiliates. Normally, the parent would shore up the

affiliate. There is also an article saying that Abu Dubai bought an interest or additional interest in the Carlyle Group in September 2007 at a discounted price. Yeah, sure discounted. They couldn't find a buyer who would pay the full price.


The Carlyle Group, the District's private-equity giant, announced that it is selling a 7.5 percent share of its general partnership to an investment group owned by the government of Abu Dhabi -- one of a flurry of deals today involving Arab governments and U.S. and British financial assets. See story.

The $1.35 billion sale to the Mubadala Development Company marks the second time Carlyle has brought an outside owner into its highly profitable fold. The purchase price values Carlyle, a high profile equity player with longstanding ties to the Middle East, at roughly $20 billion, less a 10 percent discount for the new partners. That is more than six times what Carlyle was valued when the California public pension system purchased about 5 percent of the company in 2000.

http://blog.washingtonpost.com/washbizblog/2007/09/carlyle_group_sells_stake_to_a.html

See also

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=57763

[muriel_volestrangler]

8. I think the 'Capital Corp' was designed to be jetissoned in case of trouble

registering it in Guernsey, a tax haven, doesn't look like a sign of wanting to be closely associated with its finances. It was always designed to get others to lend it the vast majority of its money, rather than a significantly-owned subsidiary.