Credit crunch hits Carlyle unit

[Emillereid]

Credit crunch hits Carlyle unit
Carlyle Capital Corporation, the fund manager backed by the giant private equity firm Carlyle Group, has not been able to meet several payment demands.
The company said it received margin calls from seven financing groups that totalled $37m and it was not able to meet four of those requests.

A margin call is a payment to guarantee a much larger debt or investment.

Carlyle Capital invested in assets backed by US mortgages, which have been hard to value since the credit crunch.

In a statement, the company's chief executive, John Stomber, said the last few days had created a market environment that did not fairly value the fund's assets.

He said that had caused "instability" and "variability" in the company's financing arrangements.

<snip>

One creditor has issued a default notice and Carlyle Capital expects to receive a second such notice.

<snip> .....

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7280892.stm

Published: 2008/03/06 10:30:52 GMT

[Fresh_Start]

1. Am I allowed to be happy that Carlyle is caught in the subprime

problem?

Or is that too sympathetic?

[rosesaylavee]

5. I am happy.

I give you permission to do a little happy dance too. Carlyle Group has Bush I and Bin Laden's family as members. As much as I hate to see people hurt by the subprime debacle, somehow my sympathy ends with those running the regime and who have done enormously well since they staged 911.

[Fresh_Start]

6. The subprime crisis is MY FAULT

I kept wishing the Bush and Cheney would find themselves broke, homeless, and without a true friend in the world.

Maybe the subprime crisis is the answer to my wish

[TalkingDog]

9. Marcel Rocks because LHOOQ n/t

[gasperc]

2. isn't Bush dad involved with this sewer pit

aren't the Saudi's gonna bail them out?

[Vincardog]

3. Do you mean to say that this club of former Presidents and the richest of the rich

War Mongers is having problems financially? How long before they are asking for a public bailout?

[Doctor Cynic]

4. Boo hoo. n/t

[CGowen]

7. They wrote about the credit crunch in their letter in Jan 2007

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x26401

[niyad]

8. oh my, guess they'll have to sell off dunkin' donuts now

[bhikkhu]

10. Carlyle - Poppy & bin Laden's old stomping ground.

They both made a fortune in defense contracts and whatnot with Carlyle after 911. At some point the bin Laden stake in the corp became a bit uncomfortable (anyone else note the irony?), and the bin Laden's made a profitable exit.

Poppy Bush stumped for Carlyle all over the Middle East and Asia, applying all the connections and leverage a lifetime of CIA work and the presidential gig gave him.

Bankruptcy is too good for them.

edit - spelling