You could either read this as Mitt Romney being defined as a soulless corporate raider early enough for him to have trouble reversing it, or the set of stories on Romney’s early career at Bain Capital coming out too early to be a factor in the Presidential race because nobody’s tuning in at this stage. But for whatever reason, we’ve been treated to a spate of articles on Bain in the last few days.
First there was the Tom Hamburger story in WaPo showing that Bain specialized in investing in companies that shipped away American jobs. The Romney campaign tried to play that off by saying that those companies engaged in “offshoring” and not “outsourcing,” as if that was supposed to make anyone feel better.
Then, the New York Times weighed in with this story, which accurately represents the Bain business model, and how the relative health of the companies in which it invested didn’t matter to their bottom line:
Cambridge Industries, an automotive plastics supplier whose losses had been building for three consecutive years, finally filed for bankruptcy in May 2000 under a mountain of debt that had ballooned to more than $300 million.
Yet Bain Capital, the private equity firm that controlled the Michigan-based company, continued to religiously collect its $950,000-a-year “advisory fee” in quarterly installments, even to the very end, according to court documents.
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.
That Bain was able to reap revenue from Cambridge, even as it foundered, was hardly unusual.
Adding to this portrait, of Romney presiding over a firm that made profits off of bankruptcies and practically invented the technique of shipping out US jobs, you have this even more damaging story about a business relationship with junk-bond king Michael Milken:
It was at the height of the 1980s buyout boom when Mitt Romney went in search of $300 million to finance one of the most lucrative deals he would ever manage. The man who would help provide the money was none other than the famed junk-bond king Michael Milken.
What transpired would become not just one of the most profitable leveraged buyouts of the era, but also one of the most revealing stories of Romney’s Bain Capital career. It showed how he pivoted from being a relatively cautious investor to risking his reputation for a big payoff. It is one that Romney has rarely, if ever, mentioned in his two bids for the presidency, perhaps because the Houston-based department store chain that Bain assembled later went into bankruptcy.
But what distinguishes this deal from the nearly 100 others that Romney did over a 15-year period was his close work with Milken’s firm, Drexel Burnham Lambert Inc. At the time of the deal, it was widely known that Milken and his company were under federal investigation, yet Romney decided to go ahead with the deal because Drexel had a unique ability to sell high-risk, high-yield debt instruments, known as “junk bonds.”
I don’t know if the name “Milken” resonates anymore, but he was synonymous with the attitude of Wall Street to extract profit at all costs, the individual workers affected by the maneuvers be damned. And this article connects the dots between Milken and Romney, effectively transferring that attitude to Romney himself. In fact, Romney kept the deal going with Milken even as the latter was being investigated by the SEC for securities law violations.
It seems the traditional media has begun tuning in to these image problems for Romney at Bain. There does become a point at which these perceptions get difficult to reverse. And the image of a corporate executive making money off of other people’s suffering isn’t exactly popular.




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What does this spate of articles reveal about who the PTB have chosen for the next POTUS.
I have to admit, I just LOVE any headline that begins “Romney Hounded”. Thanks Dave!!! You’re my hero. You are the wind beneath…..well you know.
Yeah, why change whores in the middle of the stream.
I don’t think it says much. Both report to the MOTU. So the PTB aren’t too concerned about who wins.
Was thinking though how funny it would be if Gary Johnson took New Mexico and neither side of the fake D/R divide got a majority in the electoral college.
PTB are not homogenous. There are rival groups. Like kremlinology, all these planted stories give some clue as to who is in & who is out.
I don’t care about the partisanship, or “which whore” the PTB want…Romney is a terrible person (except maybe to his own family, but that means nothing) who will make things in this country worse than they are. I will NOT engage in “but Obama’s just as bad.”
Whatever.
People still need to know what Bain was and is, and that means Romney. And as an additional benefit, maybe it will dawn on some folks that LBO’s and “private equity” are not just any old business, but business models that harm people, companies, and nations, and maybe, just maybe, some will start thinking about doing something to end that business model’s legitimacy.
That would be worth it by itself. So, yeah, MORE STORIES LIKE THESE!
I know there are competing factions, such as Koch v. Soros. But as far as I can tell, they’re all generally satisfied with the overall direction of more crony capitalism… a disease which both sides enjoy spreading.
I like the simile “like kremlinology.” Very apt, since we the people seldom are told anything useful by our MSM.
Both sides support crony capitalism, but which cronies.
My read is that O has outlived his usefulness by his ham-handed way of figuring out how to piss off both his masters and his voters to the max degree.
Romney, OTOH will just bull thru the plan without having to worry about voters.
But I’m still in the evidence collection phase in testing this hypothesis.
i agree.
Note Soros’ endorsement of austerity for Europe:
http://business.financialpost.com/2012/06/25/soros-warns-euro-at-risk-if-summit-fails/
To David Dayen:
Discussing Mitt Romney’s fealty to predatory capital belabors the obvious.
Let’s try for an attempt to get predatory capital off our backs, shall we? Voting for Barack Obama isn’t going to do it. See, e.g. Matt Stoller’s latest piece:
http://www.nakedcapitalism.com/2012/06/back-obama-the-cool-self-aware-irony-drenched-con-artist.html
Fascinating question, IMO. Where did I see that O was not at the Bildeburg thingie (or whatever), but he was the last election cycle. I’ve long assumed that the PTB were perfectly happy with O.
Huh. Didn’t realize Soros was into austerity. Edit: From your link, “Merkel has emerged as a strong leader,” Soros said. “Unfortunately, she has been leading Europe in the wrong direction.” That sounds anti-austerity to me.
They’re perfectly happy as long as they own both sides… though the TP / OWS movements did catch their attention… if only briefly.
In every group in power, there are factions. It is interesting to note who rises to the top. If I were one of our elites, I’d be damn sure to install a leader who is can talk like a populist considering how bad the economy has been for regular folks over the last few years.
I’ve got all the test subjects “hooked up” to the apparatus.
What was the voltage setting you wanted them on???
The Junk Bond King! The consummate dirt-bag, only to be outdone by two guys in jail for life! Made-off and Stanford?
Slave-owners did the same thing. Extract profit at all cost like addicts seeking the fix, while attempting to protect a way of life which utilized bought law and legal decisions to screw human beings, leading to civil war? Then we got the 12th, 13th and 14th Amendments. Maybe America’s next civil war, after I’m dead and gone will result in the adoption of Jefferson/Madison’s original 11th Amendment, ending American’s servitude to corporations as we ended our servitude to a King and his cohorts in colonial corporate crime! Its We the People being held hostage by corporate America, taking on the collective persona of an enthroned King protecting a dysfunctional money and power addicted cadre of enabled corporate criminals who have raped this Republic. Milken, Stanford, and Madeoff are the tip of the iceberg, who just got caught. Just as Sandusky raped innocence, itself. He finally got caught after years of enabling and at least this jury did the correct thing, unlike a compromised SJC, way back then and now! Silence is cancer. Jefferson and Madison have been proven correct in their fear of the corporate entity. We live it and suffer the consequences via consolidation of power by corporations seeking monopolies in commerce and trade, obliterating competition, consumer choice and ultimately freedom, itself!
http://www.youtube.com/watch?v=zVaJuJicS2g
Tom Hamburger is one of the few old-school reporters left. His home for most of his car was the Minneapolis Star Tribune, and while there he was the first mainstream reporter to notice that there was no ‘there’ there in the Gerth/Labaton Whitewater smoke-without-fire machine.
Then again, Tom’s used to doing important stories that tend to get buried because they contradict what the PTBs want promulgated as ‘conventional wisdom’.
What I don’t understand is why Romney is being attacked for his business dealings at Bain Capital. Granted, Romney is a capitalist and utilized business policies that are morally repugnant and inhumane in.re. the workforces at the companies he destroyed, but these practices are all legal and the accepted model for Big Business. Romney is an uber-wealthy, insensitive POS, who amassed his fortune through exploitation, but that’s always been evident.
Perhaps some people are just being overly critical and jealous. /s
There appear to be vast populations, now, who have become anticapitalists — but only if the capitalists have an (R) next to their names. If they’re (D) capitalists, all is good.
Apparently you are correct. All of our laws promoting outsourcing from NAFTA through the most recent FTA’s receive support as long as they’re promoted by the “D”‘s. That’s why it will take a “D” to totally eviscerate the New Deal with a minimum of objections.
I wonder if Mitt brags about having “whisky with Boesky and cookies with Milken”* back in the day when people understood and appreciated how truly magnificent he and his pals were…
*A reference to the go-go 80s business guy in the Futurama episode “Future Stock”
Anticapitalism has become just more blather in light of the potential of election-year rhetoric to subsume everything to the contest of (D) and (R) to position their candidates culturally. What matters, then, is that we pretend that Romney-haters are “real liberals.” Never mind that it’s all phony.