Huffington Post:
The world's second-biggest private-equity firm was sued this week over its "reckless and grossly negligent" management of a failed mortgage bond affiliate that cost investors nearly $1 billion, according to suits filed in Delaware and New York.
The Carlyle Group, which oversees more than $90 billion across six continents, stands accused of paying its executives "excessive and unjustified" fees while managing its hedge fund, Carlyle Capital Corporation, into the ground, the Financial Times and Bloomberg News report, citing the two lawsuits. CCC, which invested in mortgage-backed securities and "leveraged finance assets," collapsed in March 2008 after it "failed to meet more than $400 million of margin calls on mortgage-backed collateral," Bloomberg reports.
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