The Place Where Industry, the Military and Government Converge

``The derivatives-heavy Carlyle Capitol had been the first of 55 funds the Carlyle Group took public between July 2007 and March 2008. It went belly up as its mortgage-backed assets began to implode and a group of the world’s biggest banks, including JP Morgan, refused to hold off on margin calls and liquidation of assets — moving instead to seize and sell what was left of the fund’s assets. While the losses to the Carlyle Group were “minimal from a financial standpoint”, it nevertheless represented a major embarrassment for the giant private equities firm — which, it must be mentioned, had $76 billion tied up in exactly the same kinds of “derivative investment tools” as its “separate legal and business entity” aka the Carlyle Capitol Corporation.''