So many people lost so much money in so many ways on mortgage-backed securities during the crisis, it’s easy to forget all of them. Like Carlyle Capital Corp., which went belly-up in 2008 and cost investors a cool $1 billion. It was so forgettable that nobody seemed to realize that Carlyle was getting sued over it on Guernsey, the quaint Channel Island and offshore haven where Carlyle set up CCC, and which co-founder Bill Conway was forced to visit earlier this month. Unfortunately, between strolls on the beach, Conway was forced to explain why, exactly, Carlyle had waited until it was too late to do anything about the unfolding catastrophe. Perhaps it had something to do with not understanding what the word “worst” means.
“We all lived through something that was worse than the worst-case scenario,” Mr. Conway said in court earlier this month. “Until March 2008, I was always convinced that CCC was going to make it.”