The Following is from Wrestling Observer Newsletter:
Several weeks ago WWE superstar Carlito was very upset with his role in the company and asked for his release. Vince McMahon and Carlito had a meeting at the December 3rd RAW in North Charleston, South Carolina. Carlito vented his frustrations but Vince was able to convince him not to leave.
WWE management sees Carlito as a valuable asset for a number of reasons. Aside from the fact that he's a young, talented and charismatic performer, they did not want another one of their recognizable stars jumping to TNA. Additionally, Carlito has strong ties in Puerto Rico, Central and South America, which will help WWE's expansion into those territories.
Carlito’s unhappiness began earlier this year when he was not booked for WrestleMania 23. He told the Ottawa Sun newspaper that he should have been booked for the show and WWE was foolish for not using him as a heel. Carlito’s father Carlos Colon also grew frustrated with WWE because he wanted his WWC promotion to be utilized as one of WWE's developmental territories. WWE was not interested.
Carlito is now back on good terms with WWE. Ever since the meeting with Vince McMahon, Carlito has been treated better on television. They rewarded him on the RAW anniversary special by featuring him in a ladder match with Jeff Hardy. Management loved the match and everything seems to be smoothed over.