Reply #62: Carlyle woes, Paulson comments weigh on financials [View All]

[UpInArms]

http://www.marketwatch.com/news/story/carlyle-woes-paulson-comments-weigh/story.aspx?guid=%7B96F4B0B8%2D2D68%2D4206%2D992A%2DFD302DEDBC1B%7D

NEW YORK (MarketWatch) -- U.S. financial stocks were pressured Thursday as the credit crisis again was front and center, with Carlyle Capital Corp. near collapse after failing to meet margin calls. Comments from Treasury Secretary Henry Paulson, urging banks to consider cutting dividends, also weighed on the sector. The Amex Securities Broker Dealer Index (XBD: 163.65, -6.02, -3.5%) shed 2.2% in early trade, while the Financial Select Sector SPDR ETF (XLF: 24.76, -0.42, -1.7%) ,a fund that tracks the financial stocks in the S&P 500, fell 4.3%. Carlyle Capital, the bond fund affiliated with private equity firm The Carlyle Group, is on the verge of collapse after failing to agree a new financing deal with lenders. In the other main news in the market Thursday, Treasury Secretary Paulson urged banks to reevaluate their dividend policies as a means to preserve capital, so they can "continue to lend and facilitate economic growth."