Carlyle (Satan's Investment Group) Subsidiary in Deep Financial Shit, Shares Tumble

[BurtWorm]

http://www.huffingtonpost.com/2008/03/13/carlyle-banks-to-seize-as_n_91301.html

VINNEE TONG and JOSEPH ALTMAN | March 13, 2008 11:52 AM EST | AP


NEW YORK — The likely liquidation of Carlyle Capital Corp.'s remaining assets sent the fund's shares plummeting more than 90 percent Thursday and rattled stock markets around the globe. It was also a high-profile setback for private equity fund Carlyle Group.

Carlyle Capital said late Wednesday that it expected creditors to seize all of the fund's remaining assets _ investment-grade mortgage-backed securities _ after unsuccessful negotiations to prevent its liquidation.

Its shares, which went public at $19 a share in July and traded at $12 just last week, tumbled 93.6 percent to 18 cents on the Euronext exchange.

The Amsterdam-listed fund shook financial markets last week after missing margin calls from banks on its $21.7 billion portfolio of residential-mortgage-backed bonds. Carlyle's troubles have amplified fears that billions of dollars of depressed mortgage-backed securities will flood the market, reducing their value even further.

"Although it has been working diligently with its lenders, the company has not been able to reach a mutually beneficial agreement to stabilize its financing," Carlyle Capital said in a statement.

Carlyle's troubles heightened worries about the billions of dollars in depressed mortgage-backed securities, one factor that sent stock markets down. The Dow Jones industrial sank more than 200 points, following indexes in Asia and Europe lower.

The sell-off would mark a huge defeat for the Washington, D.C.-based Carlyle Group, one of the largest private equity firms in the world with $76 billion in assets. Carlyle Capital, registered in Britain but managed by New York-based executives, was the first of its 55 funds to go public.

[no_hypocrisy]

1. What kind of interest does George Herbert Walker Bush have in the

Carlyle Group?

[JackRiddler]

5. His son...

GWB, had his independent fortune made largely thanks to Carlyle investments in his old companies Spectrum7 and Caterair, which didn't do too well as businesses except he came off well.

Bush Sr. until a couple of years after 9/11 was a hired consultant who was paid fees in the hundreds of thousands to meet with Saudis on behalf of Carlyle. It's said he has a big stake in the company's funds. (Remember, it's a private equity firm - go find the books if you can!)

The Bin Ladin family was involved in the group and pulled out after Sept. 11 when the Wall Street Journal revealed that Ladins and Bushes shared a financial interest.

Carlyle was represented by James Baker III's law firm and was chaired by ex-CIA and former Reagan-Bush defense secretary Frank Carlucci (who was Rumsfeld's college roommate and friend of many years), as well as a number of other international cronies like John Major and Fidel Ramos. It's the ultimate revolving-door company.

The book you want to read on this is The Iron Triangle by Dan Briody. Goes into all of the above and Carlyle's interests in the war industries and the oil kingdoms.

Briody's groundbreaking article from redherring.com on Carlyle after 9/11 is no longer available at the original but archived here:
http://propagandamatrix.com/carlyles_way.html

Carlyle's way

Making a mint inside "the iron triangle" of defense, government, and industry.

By Dan Briody
January 8, 2002

Original Link: http://www.redherring.com/vc/2002/0111/947.html

Like everyone else in the United States, the group stood transfixed as the events of September 11 unfolded. Present were former secretary of defense Frank Carlucci, former secretary of state James Baker III, and representatives of the bin Laden family. This was not some underground presidential bunker or Central Intelligence Agency interrogation room. It was the Ritz-Carlton in Washington, D.C., the plush setting for the annual investor conference of one of the most powerful, well-connected, and secretive companies in the world: the Carlyle Group. And since September 11, this little-known company has become unexpectedly important.

That the Carlyle Group had its conference on America's darkest day was mere coincidence, but there is nothing accidental about the cast of characters that this private-equity powerhouse has assembled in the 14 years since its founding. Among those associated with Carlyle are former U.S. president George Bush Sr., former U.K. prime minister John Major, and former president of the Philippines Fidel Ramos. And Carlyle has counted George Soros, Prince Alwaleed bin Talal bin Abdul Aziz Alsaud of Saudi Arabia, and Osama bin Laden's estranged family among its high-profile clientele. The group has been able to parlay its political clout into a lucrative buyout practice (in other words, purchasing struggling companies, turning them around, and selling them for huge profits)--everything from defense contractors to telecommunications and aerospace companies. It is a kind of ruthless investing made popular by the movie Wall Street, and any industry that relies heavily on government regulation is fair game for Carlyle's brand of access capitalism. Carlyle has established itself as the gatekeeper between private business interests and U.S. defense spending. And as the Carlyle investors watched the World Trade towers go down, the group's prospects went up.

In running what its own marketing literature spookily calls "a vast, interlocking, global network of businesses and investment professionals" that operates within the so-called iron triangle of industry, government, and the military, the Carlyle Group leaves itself open to any number of conflicts of interest and stunning ironies. For example, it is hard to ignore the fact that Osama bin Laden's family members, who renounced their son ten years ago, stood to gain financially from the war being waged against him until late October, when public criticism of the relationship forced them to liquidate their holdings in the firm. Or consider that U.S. president George W. Bush is in a position to make budgetary decisions that could pad his father's bank account. But for the Carlyle Group, walking that narrow line is the art of doing business at the murky intersection of Washington politics, national security, and private capital; mastering it has enabled the group to amass $12 billion in funds under management. But while successful in the traditional private-equity avenue of corporate buyouts, Carlyle has recently set its sites on venture capital with less success. The firm is finding that all the politicians in the world won't help it identify an emerging technology or a winning business model.

(...)

Video The Iron Triangle: Carlyle Group exposed.
http://video.google.com/videoplay?docid=7094545816220336237

More links:
http://www.informationclearinghouse.info/article3309.htm

http://www.buzzflash.com/perspectives/2002/Bush-Carlyle.html

"Meet the Carlyle Group"
http://www.hereinreality.com/carlyle.html

[natrat]

2. wont effct the rest of carlyle-ie the fund in question is insulated and it's investors lose

[aquart]

3. "The first to go public."

Yep. They knew the mortgage securities were crap last July and they offloaded them onto the general public. For THAT they should go to jail.

[KharmaTrain]

4. Hmmmm...

I've been hearing about the troubles...just read about how they're balking at capitalizing Bain Financial (Mittens) grab (bailout) of Cheap Channel has hit a snag. Also it looks like they ate a lot of big shitpile and can't find suckers to unload it on. They made big coin when the real estate and market bubble were hot and now the chickens are coming home to roost.

That said...now would the government step in to help a privately-held company get out of its mess? Is this a rope-a-dope to get their hands on some corporate welfare via real low interest loans or other fancy shell game by the squatters in the executive mansion?

Stay tuned...