☰ Menu
Blog of Mass Destruction

The Wall Street Poster Child Candidacy

By The Reverend Published: October 18, 2011

Willard Mitt Romney...

He received his undergraduate degree from Brigham Young University, and thereafter earned Juris Doctor/Master of Business Administration joint degrees from Harvard Law School and Harvard Business School. Romney entered the management consulting business, which led to a position at Bain & Company, where he eventually served as CEO and brought the company out of crisis. He was also co-founder and head of the spin-off company Bain Capital, a private equity investment firm that became highly profitable and one of the largest such firms in the nation.

If the guy in the center of the picture above....yukking it up with his money scheming, Bain Capital going to be the Republican Party's presidential candidate next fall....and he is....then it seems prudent to examine what Mitt Romney actually did at Bain Capital.

Romney graduated cum laude in 1975 from Harvard Law School, he was in the top third of his graduating class. Romney also graduated in the top five of his Harvard Business School class. Impressive. In this, Mitt Romney has little-to-nothing in common with the last two GOP presidential candidates. Romney was no class cut-up uninterested in book-learning, like, John McCain and George W. Bush. From Romney's double majors from Harvard, I think it's accurate to state that Mitt is intelligent as well as disciplined....both excellent qualities for a President.

Two years later, in 1977, Mitt Romney was recruited by Bain & Company. Mitt was 30 years old. One year later, he became a vice-president in the company. Bain & Company was a management consultant firm. Romney's clients included Monsanto and Burlington.

Romney was restless for a company of his own to run, and in 1983 Bill Bain offered him the chance to head a new venture that would buy into companies, have them benefit from Bain techniques, and then reap higher rewards than just consulting fees. Romney was initially cautious about accepting the offer, and Bain re-arranged the terms in a complicated partnership structure so that there was no financial or professional risk to Romney. Thus, in 1984, Romney left Bain & Company to co-found the spin-off private equity investment firm, Bain Capital.

In starting Bain Capital, Romney took no risks. If the new Bain Capital succeeded, so be it....if it didn't, Mitt would not be labeled a failure. For Romney the fix was in before the venture began.

He (Bain) guaranteed that if the experiment failed, Romney would get his old job and salary back, plus any raises handed out during his absence.

Romney had one more concern: the impact on his reputation should he prove unable to do the job. In the end, Bain agreed to craft a cover story if necessary, promising to bring Romney back to the consulting firm and explain Romney's return as a matter of his being more valuable to Bain as a consultant.

"So," Bain says, "there was no professional or financial risk."

Bain capital's primary "work" under Romney's guidance was leveraged buyouts of existing companies.

Professor at MIT's Sloan School of Management, Howard Anderson called Romney's money boys "first rate financial engineers", adding...

"They will do everything they can to increase the value. The promise (to investors) is to make as much money as possible. You don't say we're going to make as much money as possible without going offshore and laying off people."

In 1989, Romney's Bain Capital bought Damon Corp, a medical testing firm.....

(Damon Corp.)....later pleaded guilty to defrauding the federal government of $25 million and paid a record $119 million fine.

Romney sat on Damon's board. During Romney's tenure, Damon executives submitted bills to the government for millions of unnecessary blood tests. Romney and other board members were never implicated.

Although Romney said that he helped uncover Damon Corp's wrongdoing and took "corrective action" before re-selling Damon.....

.... court records suggest that the Damon executives' scheme continued throughout Bain's ownership, and prosecutors credited Corning, not Romney, with cleaning up the situation. Bain, meanwhile, tripled its investment.


In 1992, Bain Capital acquired American Pad & Paper, or Ampad, from Mead Corp....

Through Ampad, Bain bought several other office supply makers, borrowing heavily each time. By 1999, Ampad's debt reached nearly $400 million, up from $11 million in 1993, according to government filings.

The result: Ampad couldn't pay its debts and plunged into bankruptcy. Workers lost jobs and stockholders were left with worthless shares.

How did Bain Capital do in the Ampad deal?

....while as many as 185 workers near Buffalo lost jobs in a 1999 plant closing, Bain Capital and its investors ultimately made more than $100 million on the deal.

The Bain Capital executive experience so often boasted about by Romney's supporters and other supply-siders
is exactly, almost to the proverbial T, what Occupy Wall Street protesters are protesting.

Romney's work in leveraging, outsourcing, laying off and, sometimes, closing businesses all through the use of money schemes for the sake of the tiny investor class he belongs to, and at the expense of average working Americans.....makes him, in truth, the poster child for Wall Street.

It is no wonder that Wall Street has turned to Mitt Romney with most of it's campaign bribe money.

How Romney's prime qualification according to conservatives, his executive business experience moving money upline to the smallish investor class while pummeling workers and local communities, helps him win the beyond my comprehension.



About This Blog

  • Main Blog Promo
  • Cavs Blog Promo
  • Browns Blog Promo
  • Indians Blog Promo
  • Beer Blog Promo
  • Fracking Blog Promo
  • High School Blog Promo
  • Zips Blog Promo
  • Akron Dish Food Blog
Prev Next