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Carlyle Group backs firm eyeing up EBS investment

  • 01-12-2010 9:39pm
    #1
    egan007
    Registered Users, Registered Users 2 Posts: 2,934 ✭✭✭


    ONE OF the three private equity firms to have expressed an interest in an investment in the State-controlled EBS Building Society is now being backed by investment giant, Carlyle Group.
    http://www.irishtimes.com/newspaper/finance/2010/0717/1224274901699.html

    My mortgage is with the EBS so i've a concern about this.

    Sure - it's been proven that the banks are not exactly trustworthy*
    *to put it lightly

    BUT
    This crowd take the biscuit - remove bad install worse.

    In March 2008, Carlyle Capital Corporation, established in August 2006[22] for the purpose of making investments in U.S. mortgage-backed securities, defaulted on about US$ 16.6 billion of debt as the global credit crunch brought about by the subprime mortgage crisis worsened for leveraged investors. The Guernsey-based affiliate of Carlyle was very heavily leveraged , up to 32 times by some accounts, and it expects its creditors to seize its remaining assets.[23] Tremors in the mortgage markets induced several of Carlyle's 13 lenders to make margin calls or to declare Carlyle in default on its loans.[24] In response to the forced liquidation of mortgage-backed assets caused by the Carlyle margin calls and other similar developments in credit markets, on March 11, 2008, the Federal Reserve gave Wall Street's primary dealers the right to post mortgaged-back securities as collateral for loans of up to $200 billion in higher-grade, U.S. government-backed securities. [25] On March 12, 2008, BBC News Online reported that "instead of underpinning the mortgage-backed securities market, it seems to have had the opposite effect, giving lenders an opportunity to dump the risky asset" and that Carlyle Capital Corp. "will collapse if, as expected, its lenders seize its remaining assets."[26] On March 16, 2008, Carlyle Capital announced that its Class A Shareholders had voted unanimously in favor of the Corporation filing a petition under Part XVI, Sec. 96, of the Companies Law (1994) of Guernsey[27] for a "compulsory winding up proceeding" to permit all its remaining assets to be liquidated by a court appointed liquidator.[28]

    The losses to the Carlyle Group due to the collapse of Carlyle Capital is reported to be "minimal from a financial standpoint".[29]

    http://en.wikipedia.org/wiki/Carlyle_Group


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