Carlyle Funds Will Be Seized

Carlyle Capital funds will be seized because discussions with banks to bail them out failed. Part of the reason Carlyle is in trouble is due to their involvement with Fannie Mae and Freddie Mack:

“Carlyle Capital invested in triple-A rated mortgage debt issued by Fannie Mae and Freddie Mac, and like other investment vehicles it had leveraged its capital aggressively, borrowing $31 for every dollar of equity.”

Thirty-one dollars for every dollar of equity?! No wonder they are in trouble. The results are far reaching, as Asian and European markets fear more funds will run into trouble.

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1 Comment (+add yours?)

  1. Tim Ramsey
    Mar 15, 2008 @ 01:03:56

    I found your blog on Yahoo and read a few of your other posts. Nice blog.

    Tim Ramsey

    Reply

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