August 29, 2007 (LPAC) -- "The recent liquidity disruption is significantly worse than the events of 1998," said the Bush family-connected Carlyle Group in a note to shareholders sent out yesterday.

The warning was made in an apology to shareholders by its fund Carlyle Capital Corporation, for not telling them about the drop in its portfolio and the bailout loans coming from Carlyle Group. The note said its business model was supposed "to withstand a liquidity event equal to the events of October 1998 when the demise of LTCM threatened the financial markets," but that the situation now is already worse.

Tied into the Bush family, The Carlyle Group describes itself as one of the top private equity firms with more than $71 billion of assets under management. Former top officials include James Baker III and George H.W. Bush, as well as current President George Bush.