Carlyle Group fails to meet margin call

[sendero]

Source: Bloomberg


Carlyle Capital Corp. missed four of seven margin calls yesterday totaling more than $37 million, the Guernsey, U.K.- based fund said today in a statement. The fund expects to get at least one more notice of default related to the margin calls.

Well well well, isn't that wonderful.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aUwbo74M.GkA&refer=home

[whistle]

1. Is this why Pappy Bush has been weeping publically for months now?

[Festivito]

12. Poppy pulled out years ago and put into UNDISCLOSED securities.

Could they have pulled a borrow and bail. It's money money money.

He might be crying all the way to the bank.

[Riddler]

19. Poppy should have pulled out 62 years ago

[PassingFair]

21. He's here all week, folks!

[Festivito]

24. The family were so devoted to Hitler. Are you sure it was his.

It took Hitler into the 1980's to die in Argentina, a place the Bush family visited over and over. Reportedly for the waters.

They just could not keep that bank going during WWII. So sorry they were.

[keroro gunsou]

27. *sprays water on his monitor*

dammit riddler i just bought this one! *sticks him with da bill for a new 22in flat screen*

[SpiralHawk]

13. Or is it why Neil Bush is hanging with Rev. "Second Coming" Moon in Paraguay?

"We are sinners. Save us." - BFEE

[Kolesar]

17. Interesting graphics over there at tribal-fusion.org/gallery/

http://www.tribal-fusion.org/gallery/

[ChairmanAgnostic]

2. cookie sales for George HW?

Normally, I don't wish harm on anyone, even corporations, but I am willing to make an exception.

[leveymg]

3. Saudis are shifting their money out of Dollar-based assets.

They're shorting U.S. stocks like crazy, but the market hasn't dropped as much as they expected. Explains the margin calls and cash shortage at Carlyle Capital.

[trof]

4. Isle of Guernsey. Offshore corp. No U.S. taxes?

I didn't know that.
Bastards. Bush and all of them.

[fasttense]

5. Billions of dollars worth of assets with no market?

"Market conditions are the worst anyone in this industry can remember," said Alain Grisay, chief executive officer of London-based F&C Asset Management Plc, on a conference call with reporters today. "I don't think anyone has a recollection of a total disappearance in liquidity. I just cannot remember a time when for six months there are billion of dollars worth of assets out there for which there is just no market."

Or is it more likely crap that was once incorrectly valued at billions of dollars?

[sendero]

6. One thing I think this does prove..

... that the idea that this crisis was "engineered" is bogus. This (the credit crunch, subprime mess,etc) is merely yet more evidence of the complete incompetence of the Bush administration.

[The Doctor.]

16. 37 million is chump change to them.

From Wikipedia;

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.

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

[cliss]

23. I agree with you sendero.

The whole subprime mess was created out of a lack of regulation. The scamsters were allowed to do whatever they wanted to, and the banks and financial institutions were all involved.

The Bush administration looked the other way.

I think they are absolutely desperate in Washington today. They have NO idea how to fix the crisis. I think they are trying, every day & every way to somehow keep it from collapsing.
In a sense, the banks and investors like Carlyle Group are MUCH more vulnerable than the ordinary Joe Average. They have so much more to lose. They've got billions at stake. When it's all done, they will probably have nothing left.

So NO they do not want this to happen. But it's happening anyway.

[Hannah Bell]

26. Gee, why do you think deregulation happened?

Just some dumb guys, I guess.

Couldn't read the evidence of history.

When little boys go under, big boys get cheap stuff.

[formercia]

7. Now you know how the little guy feels

when the big players manipulate the markets to their advantage. It sucks not being in control, doesn't it?

[Steven_S]

8. Sounds like they're cutting their losses...

Here's the money quote:

The Carlyle fund said in today's statement that margin prices requested for securities weren't ``representative of the underlying recoverable value'' of the notes. ``Unfortunately, this disconnect has created instability and variability in our repo financing arrangements,'' Stomber said.

The investor class may lose some lunch money, nothing more - and then they will find a way to write off their losses so the taxpayers (us) will bear the brunt of it.

Business as usual.

[KeepItReal]

10. But they got a "$150 million credit line from Washington-based parent Carlyle Group"

Someone still thinks they should be kept afloat, huh?

[rosesaylavee]

9. I hope they have to sell Dunkin Donuts so I can go there again. n/t

[KeepItReal]

11. Hope title isn't misleading anyone: This is "Carlyle Group's publicly traded mortgage bond fund"

(eom)

[sendero]

22. Yes..

... this is a subsidiary of the Carlyle group, not the main company.

[AnneD]

14. Couldn't happen to a nicer bunch...

of profiteering scumbags.

[happygoluckytoyou]

15. UH OH.... TIME FOR ANOTHER WAR

[OKthatsIT]

18. They really 'PROJECTED' we'd go along to get along...

and keep our terrorized asses out of the way... SO THEY THOUGHT WRONG.

[bobthedrummer]

20. "UBS investment bank director Olivier Sarkozy set to join Carlyle Group" (CNBC 3-4-08)

http://www.cnbc.com/id/23459406/for/cnbc

On edit: fair use cited

[kickysnana]

25. Tinfoil hat on: Wonder if this is a coded message to other businesses...

The 1st of Sept the year of 911. Northwest Airlines failed to make their monthly rental payment to the Metropolitan Airports Commission. They had never had a payment late in 40 years and were not in financial trouble. It was one of those things that fit in with the put(?) options that happened at that time. What does this mean for other companies? It will end up in court. They contracted to pay the loan and they are solvent so you would assume they know they have to pay it even if what they borrowed on is now worthless. Defaulting triggers penalties doesn't it?

Do they think that they can renegotiate?
Do they think that the economy will crash and they won't ever have to pay this?