From Bloomberg:
Carlyle Capital Nears Collapse as Rescue Talks Fail Carlyle Group's mortgage-bond fund moved a step closer to collapse, saying creditors plan to seize the fund's assets after it failed to meet more than $400 million of margin calls.
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The fund said in a statement that it defaulted on about $16.6 billion of debt as of yesterday. Lenders will ``promptly'' take over all of its remaining assets after it failed to reach an agreement with lenders, Carlyle Capital said. Any remaining debt is expected to go into default ``soon'', the fund added.
This will lead to forced sales of mortgage assets and further write-downs for several banks including Citigroup and Deutsche Bank.