Fed just made matters worse, says Carlyle

[kickysnana]

http://www.ft.com/cms/s/0/317bcbe0-f235-11dc-9b45-0000779fd2ac.html

This week's emergency credit market intervention by the US Federal Reserve was supposed to ease the liquidity crisis for struggling financial groups such as Carlyle Capital Corporation.

But David Rubenstein, co-founder of the Carlyle Group, said it only accelerated the demise of his group's mortgage-backed securities fund, which is being liquidated by its banks for defaulting on more than $16bn of debts only eight months after listing on Euronext Amsterdam.

In response to the credit woes ripping through the financial system, the Fed this week unveiled a new $200bn Securities Lending Facility that will allow dealers to swap hard-to-finance mortgage securities, such as the $21.7bn held by CCC, for Treasuries.

<snip>

"People in the banks said, 'Because of this Fed move the collateral is now worth more, so let's seize it and sell some of it immediately'," he said.


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[Donnachaidh]

1. Boo freaking HOO Carlyle Group!

:hurts: :nopity: :rofl:

[Hydra]

2. The Fed really is screwing things up

but it was all according to plan, so let it all burn!

[TalkingDog]

6. Th' roof, th' roof, th' roof is on FIRE

Let th' motherfucker burn,
let th' motherfucker burn...

[pretzel4gore]

3. if $200 billion for single payer health care system, the howls

...you'd hear howls all the way over in Winston!
the pigs would be shreiking like ninnies as they rushed down to the sea!
cnn and foxnews whores would shit!

[Mr_Jefferson_24]

4. Wow, sweet deal...

...wish I could scoop up and then swap all those hard-to-avoid-stepping-in dog turds in my back yard for Treasuries at the Fed.

[jimshoes]

5. It will be sweet to see who the feds go after on

delinquent property taxes on all those crap mortgages that the Fed owns now.