DTogo, I’m giving you a few quotes, if you want the full story, go to the links and read the articles, I can’t paste everything in here. Bain borrowed money on these companies and paid it to themselves as dividends. This double-dipped the companies into debt and made them vulnerable to bankruptcy since they couldn’t weather any storm. This shows 22% of Bain’s invested companies by size that’ve been shown to have gone bankrupt so far, not a great business record to run on. You’re making a huge stretch saying because Romney left, one or two years later they suddenly went bankrupt. He also didn’t “leave,” he retained a controlling interest and I believe still gets a paycheck from Bain today.
The conditions for the bankruptcy were set because they over-leveraged the companies in order to take the money as fees and dividends and run. Money which then they got to keep even after the bankruptcy since Bain was a separate company. I call that gaming the system and as one creditor that threatened to sue them called it, “unjust enrichment.”
4 out of 10 of their biggest acquisitions went bankrupt and they nevertheless netted profits on 3 of them. One company also received a bailout from government insurance on its pension fund, even though Bain profited off that company and kept the money instead of contributing to the fund. So Bain profited off of the backs of the taxpayer in at least one case.
“DTogo, I’m giving you a few quotes, if you want the full story, go to the links and read the articles, I can’t paste everything in here. Bain borrowed money on these companies and paid it to themselves as dividends. This double-dipped the companies into debt and made them vulnerable to bankruptcy since they couldn’t weather any storm. This shows 22% of Bain’s invested companies by size that’ve been shown to have gone bankrupt so far, not a great business record to run on. You’re making a huge stretch saying because Romney left, one or two years later they suddenly went bankrupt. He also didn’t “leave,” he retained a controlling interest and I believe still gets a paycheck from Bain today.”
And what is Newt’s business record? His involvement with Freddie Mac? At least Bain wasn’t counting on the government to bail it out if it failed.