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(Politico)   Mitt Romney's old job is turning into the Bain of his existence   ( divider line
    More: Followup, Mitt Romney, Rob Portman, trading loss, Newt Gingrich, existence  
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2153 clicks; posted to Politics » on 15 May 2012 at 9:25 AM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

Voting Results (Smartest)
View Voting Results: Smartest and Funniest

2012-05-15 09:24:05 AM  
2 votes:

Party Boy: What's more, a federal government insurance agency had to pony up $44 million to bail out the company's underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.

That's the part that needs to be hammered on.

Romney made the taxpayers pay for out the mess he left behind.
2012-05-15 11:52:49 AM  
1 vote:

Dusk-You-n-Me: Citrate1007: Don't hate the player, hate the game.

ENTIRELY the point. One player believes the game needs to be changed, the other made their money exploiting the game and does not see a need to change it.

[ image 375x750]

Actually - from Romney's own proposed tax numbers he wants to change the game as well - to be even More in his favor. That's actually the part I find most astonishing. He's inarguably 'won' at this collection of regulations and policies that we like to call 'America' - but thinks that he really should be winning by More.
2012-05-15 10:32:29 AM  
1 vote:
Ohio Sen. Rob Portman, a top Romney endorser and potential running mate, argued at a Bloomberg View event in New York City that the GST Steel attack is unfair because "that's capitalism."

When asked what is it called when you crack a woman on the back of her head, drag her into an alley, rape her repeatedly and take her purse, Senator Portman said: "A first date."
2012-05-15 10:24:53 AM  
1 vote:

Stage Stores: Profit at any cost

In the late 1980s, Mitt Romney and his partners bought up hundreds of successful small clothing stores and combined them to form Stage Stores. Romney and his team loaded up the company with debt, and then, when the company was at its height, sold nearly all their shares at an enormous profit. In less than three years, the stock had collapsed and Stage was forced to declare bankruptcy.

Romney Economics: Stage Stores
Jobs lost 5,794
Stores closed 331
Bain profits $170 million

Mitt Romney and his partners embark on an aggressive plan to buy up hundreds of successful small clothing stores and combine them into one large company called Stage Stores

Stage Stores more than doubles, quickly growing from 257 stores in 13 states to 607 stores in 24 states, and it begins trading shares on the New York Stock Exchange

Romney and his partners sell their shares in Stage, just as stock prices reach a record high

"In September of 1997, Bain Capital, which then owned 13 percent, and Acadia, which owned 12 percent, sold more than six million shares of their Stage Stores stock-virtually all they owned-for $208 million in the secondary offering. ... The sales were made at record high stock prices of as much as $52 per share."

Houston Business Journal, 4/9/99

One year later, the stock price of Stage plummets and Romney's partners repurchase shares

"[The stock price] plunged 58 percent in one day in August of 1998, when the company reported large sales declines and slashed its expected earnings by 25 cents per share. The company's stock has continued to decline, now trading in the $6 to $7 range for a total loss in value of more than 70 percent."
Houston Business Journal, 4/9/99

Stage Stores files for bankruptcy

"Company officials blame the Chapter 11 filing two years ago on 'an expensive and expansive growth binge.'"

Houston Business Journal, 7/5/02

From 1999 to February 2002, a total of 5,795 workers at Stage Stores lose their jobs

Mitt Romney and his partners made more than $170 million from Stage Stores. They played by their own set of rules, and profited even as businesses were closed and workers lost their jobs.

This is experience that Mitt Romney now cites as his qualification to be president, and the economic philosophy he would bring to the entire country.

2012-05-15 10:15:49 AM  
1 vote:

Dade: Profiting from debt

With Dade Behring, Mitt Romney and his investors took over a healthy company and loaded it with debt. Rather than sell the company, they then had Dade take out even more loans to buy out their shares, driving the company into bankruptcy. Nearly 3,000 workers lost their jobs, while Romney and his partners made more than $250 million in profit.

Romney Economics: Dade
Jobs lost At least 2,937
Debt at time of bankruptcy $1.5 billion
Bain profits > $250 million

It was just a great place to work, with great people. Everybody really enjoyed it there-and then Bain Capital came in.

-Charlie DeAngelis, mechanical engineer who lost his job after eight years with Dade BehringBoston Globe, 11/19/09

"Bain and a small group of investors bought Dade in 1994 with mostly borrowed money, limiting their risk. They extracted cash from the company at almost every turn-paying themselves nearly $100 million in fees, first for buying the company and then for helping to run it."
New York Times, 11/13/11

They were just trying to milk as much out of us as they could.
-William T. Mowrey, former Dade employee whose salary and pension were cut

My experience at Dade during those Bain Capital years was that it was strictly an investment, not to create jobs. ... No one came from Bain and said, 'How can we hire more people?' It was, 'How do we turn our investment around and make a lot of money?'
-Michael Rumbin, vice president of technology management at Dade during Romney's tenure
Los Angeles Times, 12/4/11

Ratings agency Moody's gives Dade's bond offerings a "junk" rating due to Dade's debt load


Dade CEO Scott Garrett says the company would continue to focus on acquisitions or mergers rather than pursue new technologies or invest in research and development.

Dade takes on $420 million in new debt to pay Romney and the other owners. Romney and his investors take home $242 million from the payout, a 700% return on their initial investment.
Crain's Chicago Business, 3/24/97

"In the case of Dade Behring, the debt the company piled on in 1999 to pay Bain and GS Capital a $365 million distribution eventually led to the company's crash."
Daily Deal, 8/8/02


Dade Behring files for bankruptcy

They leveraged this thing to the hilt and got out when they could. ... We were left holding the bag. ... These guys worked there for two years and ended up as millionaires.

-Michael Rumbin, a vice president of technology management at Dade during the Romney years
Bloomberg, 7/20/11

"An examination of the Dade deal, which Mr. Romney approved and presided over, shows the unintended human costs and messy financial consequences behind the brand of capitalism that he practiced for 15 years."
-New York Times, 11/13/11

Mitt Romney and his partners made more than $250 million from the Dade Behring deal. They played by their own set of rules, and profited from the same debt that drove Dade into bankruptcy.

This is the experience that Mitt Romney now cites as his qualification to be president, and the economic philosophy he would bring to the entire country.

2012-05-15 10:02:01 AM  
1 vote:
His "old job" will be his "new Job" if he ever gets his sorry crony capitalist aristocratic ass into Our Whitehouse.
2012-05-15 09:55:01 AM  
1 vote:

I never thought of what I do for a living as job creation. ... The primary goal of private equity is to create wealth for your investors.

-Marc B. Walpow, former managing partner at Bain Capital, the firm where Mitt Romney was CEO, who worked closely with Romney for nine years
Los Angeles Times, 12/3/11

Kansas City's GST Steel was a successful company that had been making steel rods for 105 years when Mitt Romney and his partners took control in 1993. They cut corners and extracted profit from the business at every turn, placing it deeply in debt. When the company eventually declared bankruptcy, workers were denied their full pensions and health insurance, and the federal government was forced to step in and bail out the pension fund.

Romney Economics: GST Steel
Jobs lost 750
Bain initial investment $8 million
Bain profits > $12 million


Mitt Romney and his partners invest $8 million to acquire majority control of an Armco steel mill in Kansas City, Missouri, and rename it GS Technologies

"Bain got its money back quickly. The new company issued $125 million in bonds and paid Bain a $36.1 million dividend in 1994."
Reuters, 1/6/12

Romney and his partners merge GS Technologies with a mill in South Carolina, calling the new company GS Industries. The company's total debt grows to $378 million.

"In 1997, with Armco's pension guarantees set to expire in one year, the United Steelworkers local at the Kansas City plant was worried that GS was not setting aside enough money to cover pension obligations and other benefits in the event of a shutdown."
Reuters, 1/6/12

We were doing well and then Bain Capital bought us and they took everything they could out of the company without making the investments we needed to stay competitive. ... They ran the company into bankruptcy.

-James Sanderson, who had worked at the mill since 1974McClatchy, 1/14/12

With more than $500 million in debt, GS Industries files for bankruptcy and informs workers that the company will not honor the guarantees it had promised them-including severance pay, health insurance, life insurance and pension supplements.

I worked hard all my life and played by the rules, and they allowed this to happen.

-Joe Soptic, employee for 28 years, whose wife died of lung cancer after he lost his GST health planReuters, 1/6/12

The U.S. Pension Benefit Guaranty Corporation determined that GST had underfunded its pension plan by $44 million. The federal agency stepped in to cover the basic pension
payments, but workers never recovered the full pensions they had been promised.

Even with the bankruptcy and subsequent bailout, Mitt Romney and his partners made millions on the GST Steel deal. They played by their own set of rules, and profited even as workers lost their jobs and the local community suffered.

It's this same experience that Mitt Romney now cites as his qualification to be president, and the same economic philosophy he would bring to the entire country.

2012-05-15 09:48:52 AM  
1 vote:

Debeo Summa Credo: if you don't keep overpaying you are greedy.

So vote for the guy who will shift more of the tax burden onto you, or something.
2012-05-15 09:46:52 AM  
1 vote:

tenpoundsofcheese: OMG! Not every investment that Romney made worked out. I bet the teacher pension funds that invested in his funds are really upset about the return they got.

Of course we know that every investment the 0bama made with our tax dollars has worked out. Solyndra is what, $30 a share now?

What you mean it didn't work out? Bain and Romney made millions. Romney acted in the best interest of his company and share holders by offloading debt to the government and laying off workers. It wasn't that his investment didn't work out it is that he acted in a way many people find morally reprehensible.
2012-05-15 09:43:10 AM  
1 vote:

Headso: I can't believe any middle class person could even entertain the idea of voting for the guy.

You know what really drove this point home for me recently? When that story came out about Governor Walker being recorded talking to a billionaire who had given him a half million dollar campaign donation.

How utterly ignorant and self-loathing do you have to be to look at that guy and say "yea, he was discussing and agreeing with the policy interests of a person who just wrote a campaign check that could buy the average person's home twice over, but I'm sure he has my interests at heart".

It's just insane. It's absolutely insane that this tiny minority of people who are so wealthy that they cannot conceivably begin to understand the lives and concerns of more than 90% of the country have managed to convince a very large portion of that 90% otherwise.

Mitt Romney does not have your interests at heart because Mitt Romney has never lived in even the remotest proximity to you socially, culturally and least of all economically. He will not do things that benefit you because there is no way he could possibly understand what those things would even be.

But, whatever. Thems queers is tryin' to be like people, and that's alla matters.
2012-05-15 09:36:30 AM  
1 vote:
His fiscal policy is that of a facilitator to the super wealthy. I can't believe any middle class person could even entertain the idea of voting for the guy. You might as well stay home and then just flush your own money down the toilet instead of voting and ruining things for everyone.
2012-05-15 09:35:52 AM  
1 vote:
FTA:"This is a politically potent distortion of the truth. And while this is a tough hit on Romney, Obama is running the risk of owning the anti-business label."

What was 'pro-business' in the way Romney and Bain did things? They mucked up long term, profitable business and lost jobs for many, many people to enrich a small group. That is what they'd would say is American Business now? That's a decent standard to be considered an American Business worthy of protecting and any one who thinks it's not is anti-business? People see through this stuff at the common level. Those that consider it the norm are slowly being revealed as the miniscule minority in the nation who think it's an admirable way to go about making money.
2012-05-15 09:22:50 AM  
1 vote:
if the Democrats were smart, they'd unleash non stop campaign ads showing all Romney's primary opponents ripping into him for his tenure at Bain.

End with something like "Even Rick Perry/Newt Gingrich/Rick Santorum etc thought he was detrimental to America"
2012-05-15 09:22:08 AM  
1 vote:

Article wont load. Heres either some more or a repeat.

Is Mitt Romney really a job creator? What his Bain Capital record shows. CSMonitor

Mitt Romney is running for president on his business acumen, saying he knows what it takes to create jobs. He puts less emphasis on what he knows about eliminating jobs. Marion, Ind., has experienced both via Romney and Bain Capital.
Loris Huffman of Marion, Ind., lost her job of 40 years at the local American Pad & Paper Co. factory, after Bain Capital took it over in 1994. She says Bain closed the plant rather than negotiate with a striking union. During Mitt Romney's 1994 US Senate race, she attended campaign events in Massachusetts to relay her experience with Bain Capital.

Special report: Romney's steel skeleton in the Bain closet. Reuters
Former steel worker Joe Soptic stands near a giant drive wheel that was used by a steel mill that closed due to bankruptcy in 2001 and is now thought of as a memorial to the days that Kansas City, Missouri, December 15, 2011.

Less than a decade later, the mill was padlocked and some 750 people lost their jobs. Workers were denied the severance pay and health insurance they'd been promised, and their pension benefits were cut by as much as $400 a month.

What's more, a federal government insurance agency had to pony up $44 million to bail out the company's underfunded pension plan. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
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