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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRomney "Sick at Heart" Over Bain Job Losses
From Crooks and Liars:
http://crooksandliars.com/jon-perr/romney-sick-at-heart-over-bain-job-losses
Emphasis is mine.
Mods: this is 4 paragraphs from the C&L article. The indented parts are portions where the quoted article is quoting other sources, and are part of the paragraph of the non-indented lines above it.
Cambridge Industries, which filed for bankruptcy in 2000 after amassing $300 million in debt, is hardly unique when it came to Bain's "win even when they lose" business model:
In all, Bain garnered more than $10 million in fees from Cambridge over five years, including a $2.25 million payment just for buying the company, according to bankruptcy records and filings with the Securities and Exchange Commission. Meanwhile, Bain's investors saw their $16 million investment in Cambridge wiped out.
"Traditionally," Josh Kosman wrote in his 2009 book The Buyout of America, "cash-rich public companies have paid dividends to lure and reward investors." But private equity firms, he explained, stand this process on its head:
Mitt Romney was a pioneer of this strategy. His private equity firm, Bain Capital, was the first large PE firm to make a serious portion of its money not from selling its companies or listing them on the stock exchange, but rather by collecting distributions and dividends, which in this context is the exact opposite of reinvesting in a company. Bain Capital is notorious for failing to plow profits back into its businesses.
Just how notorious was first detailed by the Times five years ago during Mitt Romney's first presidential bid:
Both Dade Behring and KB Toys soon suffered dips in their business. Unable to meet the burden of their debts, each filed for bankruptcy and laid off thousands of workers. Bain Capital spokesmen have said the company did nothing improper.
Mr. Romney, who remains an investor in Bain Capital, said he had not been involved in those decisions but acknowledged that such payments became part of the buyout business "very early on."
warrior1
(12,325 posts)tawadi
(2,110 posts)NRaleighLiberal
(60,014 posts)Kalidurga
(14,177 posts)so sick he laughs all the way to the bank.
Ilsa
(61,694 posts)Crap. That store and Toys R Zus were the only two toy stores we had. After they both shut down, I had to do my toy shopping 100 away because I refused to shop at WalMart.
BumRushDaShow
(128,894 posts)And I grew up with Kiddie City and even Sears, which had a huge toy department and their famous catalog. But when the big Sears here and Kiddie City bid adieu, you at least had the Toys R Us and KB. And ironically, the Toys R Us near me used to be a Woolworth's 5 & 10 (long gone). Now both of the toy stores are gone gone gone. Am left ordering online if I need toys for the younger nieces & nephews.
zappaman
(20,606 posts)for "I don't give a fuck?"
Avalux
(35,015 posts)If Romney had truly been sick at heart, had been tormented by people losing their jobs, then he would have STOPPED WHAT HE WAS DOING.
Raster
(20,998 posts)...and now I have to act like I give a shit."
Here, smell this butter....