Obama Salivating over Romney’s Bain Capital Problems

Jan 15, 2012 by

by Donna Garner –

To give us some perspective, the Wall Street Journal on 1.9.12 estimated that Romney made from $190 to $250 Million at Bain. (As a part of his retirement agreement, Romney is still continuing to profit from Bain’s deals.)

To me, the question is not whether capitalism is the best system. Of course it is. America has become the greatest country in the world based upon encouraging economic growth through private ownership, entrepreneurship, and individual initiative.

What is smothering our capitalistic system right now is Obama’s overreach of the federal government into every aspect of our lives, and we must oust Obama from the White House to put an end to his Socialist agenda.

To be honest, however, there does seem to be a difference in my mind between those who create jobs (capitalists) and those who destroy jobs (vulcher capitalists) by reaping huge payoffs for themselves while companies they are paid to help end up closing their doors.

I do not think it was capitalism at work when a federal government insurance agency using our taxpayers’ dollars ended up paying $44 Million to bail out a steel company’s underfunded pension plan after Bain had profited $12 Million on its initial $8 Million investment and received at least $5.5 Million in consulting fees. (Reuters 1.6.12)

Something is badly wrong with this picture!

What puzzles me is how Romney could have made such a fortune at Bain when close to 1 in 3 of the companies he was supposed to be helping ended up going belly up (with thousands of people losing their jobs). Four of the ten companies where Bain made the most money also ended up going to bankruptcy court.

The WSJ stated:

 

The Wall Street Journal, aiming for a comprehensive assessment, examined 77 businesses Bain invested in while Mr. Romney led the firm from its 1984 start until early 1999, to see how they fared during Bain’s involvement and shortly afterward.

Among the findings: 22% either filed for bankruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses. An additional 8% ran into so much trouble that all of the money Bain invested was lost.

Another finding was that Bain produced stellar returns for its investors—yet the bulk of these came from just a small number of its investments. Ten deals produced more than 70% of the dollar gains.

Some of those companies, too, later ran into trouble. Of the 10 businesses on which Bain investors scored their biggest gains, four later landed in bankruptcy court.

 

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USA Today (link posted below) has written a counter to the video that has gone viral entitled “King of Bain: When Mitt Romney Came to Town.” USA Today has attempted to show that Romney actually had nothing to do with the four companies featured in the video.

 

As hard as USA Today has tried to portray Romney’s distance from Bain, the following statement in the midst of the article tells me everything I need to know:

 

Romney left Bain in early 1999 to run the Winter Olympics, before the layoffs at DDi and before Bain took the company public (though as part of a retirement agreement Romney negotiated with his former partners, he has continued to profit from Bain’s deals).

 

This tells me that even if Romney left to run the Winter Olympics in 1999, he still maintained a heavy presence at Bain since to this day, he reaps lucrative retirement checks from Bain’s profits.

 

After having been a top executive in Bain, Romney would not simply have walked away when he has so much to gain from his profitable Bain retirement benefits. It is also ridiculous to think that Romney would not continue to exercise his influence on the Bain management team.

 

In fact, in another statement in the USA Today article, there is also another telling statement from one of the three executives at Bain. In 1994 Romney went on “leave” from Bain to run against Sen. Ted Kennedy for the Senate seat.

 

Romney was on leave from Bain when it purchased SCM Office Supplies and was not part of AmPad’s management team…

 

However, Bain had three executives on the board — including Marc B. Wolpow, a former managing director at Bain who told the Los Angeles Times that Romney could have prevented the closing of the Indiana plant, which occurred after the 1994 election and after Romney returned to his job at Bain.

 

Los Angeles Times, Dec. 16, 2007: “He was in charge,” recalled Wolpow, now co-director of the Audax Group, another private equity group. “He could have ordered me to settle with the union. He didn’t order me to do that. He let me make decisions that would maximize the value of the investment. That was the right business decision as CEO of Bain Capital. But let’s not pretend it was something else.

 

It seems clear to me that Romney and Bain are basically one in the same; and if it is clear to me, then for sure it will be clear to the Obama campaign team should Romney win the Republican nomination.

 

Can you imagine the type of villainous attacks Obama would make on Romney and the $190 to $250 Million paid to him by Bain?

 

Can you imagine the political damage during the run-up to the General Election that Occupy Wall Street would do with the Romney/Bain issue?

 

By the way, on 1.14.12, WinningourFuture PAC (allied with Newt Gingrich) said it would remove any errors from its video “When Newt Came to Town” if Mitt Romney will help them figure out what is wrong by answering a list of questions about his tenure at Bain Capital. (The Church Report,1.14.12).

 

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To read the entire article (published on 1.14.12) entitled “FactCheck.org: Facts Strained in Anti-Romney Ad,” please go to: http://www.usatoday.com/news/politics/story/2012-01-13/gingrich-bain-super-pac/52543872/1

 

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Here is the video that has gone viral:

 

“King of Bain: When Mitt Came to Townhttp://www.youtube.com/watch?v=BLWnB9FGmWE

 

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1.14.12 – “How Mitt Romney Made Millions While Destroying Thousands of Jobs” – by Donna Garner — http://educationviews.org/2012/01/14/how-mitt-romney-made-millions-while-destroying-thousands-of-jobs/

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