Quote:
Originally Posted by Butterfly  Even the Carlyle group is getting OWNED!!! Quote: |
Originally Posted by WSJ Missed Margin Calls Slam Stocks
The Dow industrials plunged 214.60 points, or 1.8%, to end at 12040.39 after missed margin calls at Carlyle Capital and Thornburg Mortgage raised new fear of credit-market turmoil. Shares of banks and REITs were especially hard-hit. 5:40 p.m. | |
Yes, link:
FT Alphaville » Blog Archive » Banks call time as Carlyle Capital fails margin calls
Carlyle Capital’s CEO said:
The last few days have created a market environment where the repo counterparties’ margin prices for our AAA-rated U.S. government agency floating rate capped securities issued by Fannie Mae and Freddie Mac are not representative of the underlying recoverable value of these securities. Unfortunately, this disconnect has created instability and variability in our repo financing arrangements. Management is actively working with the Company’s repo counterparties to develop more stable financing terms.
Which is a bit like saying 'my house is worth $100Million, but as no-one wants to pay that, I won't sell it and continue to value it at the same figure...'