By now everyone knows that Carlyle Capital Corp, a publicly listed investment company managed by a unit of private-equity firm the Carlyle Group, admitted today it had received a notice of default from one of its banks after failing to make margin calls on its $21.7 billion real estate securities portfolio. It also expects to receive at least one more default notice after falling short of margin requirements with four lenders.
So who are the lenders sending default notices and who are the one who are just chillaxing? As of December 21, Carlyle’s lenders were Bank of America, Bear Stearns, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, ING, J.P. Morgan, Lehman Brothers, Merrill Lynch & Co. and UBS AG. None of the lenders have commented on who pulled the trigger first and whether they would be adding to the slush pile of default letters. We’ve been digging for hours but we have come up empty. So we’re turning to you. Anyone know which lenders are punching up Carlyle?
Carlyle Capital Adds to Fears Of Forced Sales [Wall Street Journal]
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Citi, Bear, Merrill, and maybe Calyon – best guess
We sent it. – The French
I’d guess BNP as well, although douchebank coulda made the call too
It may not have been Calyon/Newedge. I know they had a margin calculating problem yesterday. When we should have had a call yesterday, they said we had excess. Fine by me.
Better question is who was asleep at the switch and didn’t? They were at 32x leverage and asset values declined on average by 3 pts from highs in Jan. Not much cushion.
Who could possibly think running that levered of a strategy made sense? – it hasn’t been 2006 for a while. Plus it’s not like leverage didn’t blow them up last summer.
those damn french banks again… full of private bankers…
Ummm…did anyone read the paper today…do you think MAYBE UBS made the call???
You have no chance to survive make your time. Ha Ha Ha
CATS
the best guess can be Lehman Brothers