The market turmoil has moved into a new phase over the last few days, as yet more hedge funds look to be on the brink or have halted withdrawals.

The jig looks almost up for Carlyle Capital, which has confirmed that it has been unable to reach agreement with its lenders, after failing to meet margin calls. Lenders are now expected to 'promptly' take over all the fund's remaining assets.

The Financial Times reports that Blue River Asset Management, a Colorado-based fund specialising in municipal bonds, is to close its main fund after suffering losses of up to 80%. Bloomberg reports that Drake Management, a hedge fund started in 2001 by former BlackRock money managers, may wind down its $3bn Global Opportunities Fund after a 25% decline in the last year. The news agency also says that GO Capital Asset Management, a hedge fund run by Frans van Schaik, ABN AMRO's former head of equity research, has stopped clients withdrawing funds from its $881m Global Opportunities Fund. The firm said on a recent letter to clients that the fund was not leveraged and was not facing margin calls, but that 'a temporary suspension of redemptions is the best defensive measure to protect the interests of the participants'.

Reuters reports that The New Zealand arm of ING confirmed Wednesday that it was suspending withdrawals from two investment funds worth $413m due to the current market turmoil. Setting the tone, Bloomberg quotes Greg Bundy, executive chairman of Sydney-based M&A firm InterFinancial Ltd, who said: 'There's more to come. The problem is no one can give you an educated guess about how much'.

Bloomberg reports that Moody's Investor Services may 'strip' Dresdner Bank's $16bn SIV K2 of its top credit ratings. Reuters reports that Japan's Shinsei Bank has now said that it will fall some 70% short of its full-year profit forecast due to widening subprime lending-related losses. The firm is also to sell its Tokyo HQ to Morgan Stanley to raise capital.

Bloomberg reports that rating agencies Moody's and Standard & Poor's are themselves likely to miss their own profit forecasts this year due to the market turmoil and economic downturn.

The Wall Street Journal reports that JPMorgan Chase CEO Jamie Dimon said in a dinnertime speech to the Economic Club in Washington Wednesday that he estimated that around 50% of the subprime lending-related clean-up had already been done. And Reuters reports that Morgan Stanley boss John Mack is likely to get it in the neck at the firm's next annual meeting in April. A group of activist funds are lobbying shareholders to vote against Mack's re-election to the board due to the subprime losses Morgan Stanley sustained last year.

Finally, Reuters reports that many US traders stopped work Wednesday to see New York Governor Eliott Spitzer fall on his sword after admitting multi trysts with a woman of the night. There was no love lost been US financial markets professionals and Spitzer who, when New York State Attorney General, left no stone unturned in a bid to stick it to the industry.

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