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| Lenders to liquidate Carlyle unit | Lenders to liquidate Carlyle unit |
| (10 minutes later) | |
| Carlyle Capital Corporation (CCC), a unit of the private equity firm Carlyle Group, has said it will not be able to meet lenders' demands for money. | Carlyle Capital Corporation (CCC), a unit of the private equity firm Carlyle Group, has said it will not be able to meet lenders' demands for money. |
| The US mortgage-backed bond fund will collapse if, as expected, its lenders liquidate the fund to take possession of its remaining assets. | The US mortgage-backed bond fund will collapse if, as expected, its lenders liquidate the fund to take possession of its remaining assets. |
| CCC is the latest casualty of the declining US housing market. | CCC is the latest casualty of the declining US housing market. |
| Its shares were suspended last week after some lenders forced it to sell assets to get their cash back. | Its shares were suspended last week after some lenders forced it to sell assets to get their cash back. |
| "Almost within the blink of an eye, a business that had borrowed $21bn from the world's biggest banks to invest in high-quality mortgage-backed securities will be gone, liquidated, kaput," said BBC business editor Robert Peston. | |
| "Such is the whirlwind blowing through global financial markets." | |
| CCC's collapse will lose its clients some $600m, according to Simon Denham, managing director at Capital Spreads. | |
| He believes this will have a "serious knock on effect across the hedge fund fraternity" with lending banks demanding an increasing level of cash to insulate themselves against the possibilities of credit defaults. |