So the Carlyle Group is on the brink of financial collapse, no wonder Pappy Bush sobs continuously...

[whistle]

<snip>
Lou Gerstner-Led Carlyle Capital on Brink of Collapse
By Michele Masterson, ChannelWeb
3:48 PM EDT Thu. Mar. 13, 2008

Even though he was credited in turning around IBM (NYSE:IBM)'s misfortunes, it looks as though former CEO and chairman Lou Gerstner won't be able to save Carlyle Capital Corp., an affiliate of private equity giant The Carlyle Group of which Gerstner is chairman.

The Carlyle Group's publicly traded Carlyle Capital Corp. defaulted on approximately $16.6 billion of debt. The company said that the remaining indebtedness is expected to soon to go into default.

CCC is the Washington-based investment firm's mortgage bond fund and is the latest casualty of the U.S. credit crisis. In total, Washington-based Carlyle Group had $74.9 billion under management in 57 funds.

"The company expects that its lenders will promptly take possession of substantially all of the company's remaining assets," the company said in a statement. Carlyle chairman Gerstner was CEO and chairman of IBM from 1993 until his retirement in December 2002.

According to an article at the time in The New York Times, Gerstner was to sit on the investment committees of two of the firm's funds, a venture fund and a buyout fund. It has not been disclosed if Gerstner was part of the CCC group.

Among its many deals, The Carlyle Group's technology group this past January acquired KCS.net Holding AG, an enterprise resource planning solution vendor and Microsoft (NSDQ:MSFT) Gold Certified Partner based in Liestal, Switzerland.

Gerstner has been credited with turning around IBM in the early '90s when the company was accused of putting too much focus on its mainframe business and under Gerstner subsequently shifted to the technology services business.

One of the company's coups was its hostile takeover of the software company Lotus Development in 1995. After much bargaining, IBM bought the company for $3.52 billion. Gerstner then reorganized the company into four units: the personal computer software business, communications software, telecommunication networks and consulting

Gerstner has also acknowledged his own missteps during his IBM tenure, such as underestimating the networking market and not selling computers directly to end users. On a more personal front, he was also criticized for his harsh management style that clashed with IBM's kinder, software corporate culture at the time.

<link> http://www.crn.com/hardware/206903543

<snip>
Mar 12, 2008

Bush family touched by subprime crisis
By F William Engdahl

The severity of its liquidity problems indicates that the unfolding financial crisis is taking major parts of the US financial and political elite down with it. Carlyle Capital Corp Ltd, a subsidiary of one of the most influential US private equity funds and closely tied to the Bush family, is in default on several of its securities. Carlyle is an offshore subsidiary of the Washington-based Carlyle Group, one of the most politically powerful private equity firms of the past two decades.

Among the leading partners of the Carlyle Group in recent years have been George H W Bush, father of President George W Bush; James Baker III, the Bush family's attorney and fixer; and former British prime minister John Major.

Carlyle Capital reports it is attempting to convince lenders holding US$16 billion in securities not to liquidate the company's remaining collateral. The company is a listed mortgage-bond fund managed by the Carlyle Group. The Carlyle Group already has loaned Carlyle Capital $150 million to cover debt obligations since July 2007. In the past several days it failed to meet margin calls with four banks.

The fear in the market according to informed reports is that its entire portfolio, recently valued at $21 billion, could be sold off in a distress sale, putting major downward pressure on all mortgage bonds globally. A collapse at Carlyle would hit the value of all fixed-income securities, which have already dropped sharply as banks pull back on their lending, and force a new global round of asset sales.

<MORE>

http://www.atimes.com/atimes/Global_Economy/JC12Dj02.html

Paraguay may be the only place for the Bush Family to run and hide

[kickysnana]

1. Carlyle Capital is only a small 2006 originated part of Carlyele Group n/t

[MannyGoldstein]

2. It's Only One Part Of The Calyle Group

Not tht I wouldn't want to see the entire thing implode...

[whistle]

4. That is true but it could be the broken nail in the shoe that makes

...the horse go lame :yoiks:

[orleans]

3. maybe if they had a donut

and some ice cream



they'd feel better

[peacetalksforall]

5. A couple of things come to mind and float around because I don't know

enough to know how to take this news and interpret it -

one thought is that this default is like the benefits the WTC gained with the bombing - they didn't have to fix and update the building - asbestos, etc.

the other is that this could be the little finger in the dike that starts the domino effect - with all their riches protected and the all the consequences to be felt by us and maybe by some extra tweaks, by their enemies.

[ben_meyers]

6. I doubt that we will see Bush and Soros

begging on the streets anytime soon. Carlyle Capital is a tiny spin off from the Carlyle Group. But it would be fun to see those 2 old geezers at each others throats for real.

[aquart]

7. What have you got against Soros?

[ben_meyers]

8. Other than being a cheating, manipulating, money grubbing

bastard like the rest of his partners at Carlyle Group, nothing much. I don't know him personally, maybe he likes kittens.

[Crabby Appleton]

9. CCC's woes seen as small blemish for Carlyle Group

http://www.reuters.com/article/etfNews/idUSN1361636620080313

[KharmaTrain]

10. I Had A Dream....

In it, Poppy Bush, Consigliere Baker, Major, Poodle and the rest of the Carlyle crowd are forced to face Saudi justice for losing all the money...and ya know what happens when you steal. Imagine what Eliot Spitzer would be facing in this dream...

Then there was Erik Prince sitting in the dock of a court room facing war profiteering and other crimes...his company busted in a bid rigging scheme with KBR, Halliburton and other contractors that make them inelligible for future government contracts...

Then there was Rummy sitting in a glass cage in the Hague...looking at the rest of his co-defendents in the Iraq War crimes tribunal...damn the room was too small, they had to move it to a stadium...so many defendants, so many wanting to see them get justice.

Then...I woke up and my pillow was gone...

:rofl: