Refresher: Romney and Bain Capital – a Company ‘Harvester’

 

How about a refresher now that Romney has arisen like the “Ghost of Christmas past.”

How easy to forget what a swamp creature he was and is, and we should not be surprised that he couldn’t even wait to be sworn in to attack Trump. His baby – Bain Capital. The harvester which bought distressed companies, attempted to make improvements, but not to worry. If they failed they simply sold their assets, went bankrupt with employees losing their pensions in some cases then on to the next – wash, rinse and repeat. He no doubt was successful. There is no doubt had a couple of super hits – Staples being one.

 

 

 

Here are a few snippets:

 

But at Bain, Romney’s top priority wasn’t to boost employment. As the Wall Street Journal recently noted, creating jobs “wasn’t the aim of Bain or other private-equity firms, which measure success by returns produced for investors.” And, the newspaper reported, Romney’s 100,000-jobs claim is tough to evaluate.

Mother Jones has obtained a video from 1985 in which Romney, describing Bain’s formation, showed how he viewed the firm’s mission. He explained that its goal was to identify potential and hidden value in companies, buy significant stakes in these businesses, and then “harvest them at a significant profit” within five to eight years.

……But this short clip offers a glimpse of Romney when he was at the start of his private equity career and saw businesses as targets of opportunity that could be harvested for the benefit of his investors, not as long-term job creators or participants in a larger community. His remarks were hardly surprising, but they did encapsulate the mindset of get-in/get-out private equity deal makers.

H/T: Mother Jones

 

This video was created in 1985.

People are still puzzled how he became so rich so fast. Especially his IRA.

Mitt Romney’s unprecedented refusal to release his tax returns* is the one about how he got so rich–and how, more specifically, he managed to accumulate $20-$102 million in his IRA.

On the IRA question, donations to individual retirement accounts, which are shielded from taxes until withdrawals begin, are limited to $4,000 per year (and used to be $2,000).

So, barring a miraculous rate of return from as-yet-unspecified “investments,” it’s hard to see how Romney’s IRA could have grown so large.

But since Romney’s IRA investments are disguised via a byzantine series of offshore entities designed at least in part to minimize US taxes, it is impossible to do this analysis without having access to his returns. More at Business Insider

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