Big Bain Backfire

[Listening]

They didnt INVEST $100 million.

Really? Firstly, how much did they pay for the company?

Its all there in the links I provided already. Why dont you read a couple of them.

The initial investment was 8 million of borrowed money, which they then placed on GST books as debt...fairly common practice among venture capitalists and one that was illegal prior to the 1980's. Through the bond issuance alone, Bain collected 36 million dollars, while increasing GST debt by $125 million. Its been reported that they then borrowed another $61 million dollars to pay out as dividends to themselves ( Bain ), all on GST's books.

When it declared bankruptcy in 2001, Bain had increased GST debt to $554 million dollars.

I'd like to see a link.

If Romney (or anyone) can buy controlling interest in a company for 8 million and leverage it for 554 million....he's is one hell of a business man (and there are some pretty stupid bankers out there).

Please provide the links that show these numbers.

I am very curious to see how they pulled this off. The only way it would have happened is if they had somehow increased the value of the company that much (using the 125 million). Again, that would show how well they've done.....

But I am not buying it. They would have sold at an enormous profit had there been that much leverage to be had.

 

[Vidi]

Really? Firstly, how much did they pay for the company?

Its all there in the links I provided already. Why dont you read a couple of them.

They paid $75 million for GST, right?

All reports Ive seen say they borrowed 8 million dollars to buy GST. That number seems incredibly low to me, but I have yet to see anything disputing it.

 

[Vidi]

Im done for a bit. Need to get on the road for a couple hours.

 

[Lakhota]

Mitt Romney's Bain Capital Bailout: GOP Candidate's Firm Profited From Company That Required $44 Million Federal Bailout

 

[Listening]

Its all there in the links I provided already. Why dont you read a couple of them.

They paid $75 million for GST, right?

All reports Ive seen say they borrowed 8 million dollars to buy GST. That number seems incredibly low to me, but I have yet to see anything disputing it.

Oh that I believe.

And I know people who worked on the expansion they funded with the 100 million plus they borrowed.

I am not buying the whole 554 million in debt.....who'se going to loan that kind of money out against a paltry 100 million or so in assets ?...and those would not even be discounted yet.

 

[Lakhota]

Sounds like the RNC sent in the junior varsity.

 

[Listening]

Mitt Romney's Bain Capital Bailout: GOP Candidate's Firm Profited From Company That Required $44 Million Federal Bailout

This makes you a first class zealot.

The pension fund was underfunded to start.

Romney's profits were legal.

Or do you not like the idea that he borrowed 100 million and pumped it back into the economy ?

 

[Listening]

Sounds like the RNC sent in the junior varsity.

It is Obama who is backpeddling.

Booker called him on it.

So maybe you meant DNC.

 

[tinydancer]

I hope this hasn't been put up before. I haven't had a chance to go thru the whole thread.

Unfair’ Ads

Booker’s comments came on the heels of those from Steven Rattner, who headed the president’s auto task force and last week called “unfair” an Obama campaign ad about a Kansas City, Mo., steel mill that was taken over by Bain in 1993.

“I don’t think Bain Capital did anything they need to be embarrassed about,” Rattner said May 14 on MSNBC’s “Morning Joe” program.

“It did it superbly well, acting within the rules, acting very responsibly, and was a leading firm.”

While Booker and Rattner weren’t speaking as official campaign surrogates, their comments reflect a broader reluctance of top business leaders and elected officials to sound the campaign criticism of Romney’s Bain performance, in part, because they don’t want to vilify an industry that makes positive contributions to the economy.

As a private-equity firm, Bain has made successful investments and many of its customers are pension funds, said Steven Kaplan, a professor at the University of Chicago Booth School Business.

“The fact is, a number of the private-equity investors, even some of the big names, are Democrats,” said Kaplan.

“You can always find a deal that didn’t work.”

Read more on Newsmax.com: Democrats Turn on Obama's Bain Attack Ad
Important: Do You Support Pres. Obama's Re-Election? Vote Here Now!

 

[Lakhota]

It sounds like Bain Capital was just one big Ponzi scheme.

 

[Listening]

It sounds like Bain Capital was just one big Ponzi scheme.

And you are one big asshole.

When you can talk finance, let me know.

 

[Lakhota]

 

[Chris]

Romney's secret Swiss bank account....

Romney was required to file a financial disclosure form, less detailed than taxes, when he filed for president. In fact, he argued that he should have to release his taxes because the disclosure form showed everything important. But 23 different investment funds shown on his taxes did not appear on his disclosure form -- and 11 of those are in those overseas, secret banking centers. That's a sign of what he's embarrassed to reveal -- and it's also a felony, if the government can prove it was deliberate and not just a sloppy oversight.

The biggest concern is Romey's Swiss bank account, one of the items not on his financial disclosure. Mitt had it from 2003 to 2010, when his adviser shut it down. He closed it in the middle of an amnesty that the IRS had declared for owners of previously unreported Swiss bank accounts -- if they came clean, they would not face criminal prosecution for not reporting it in previous years (which was illegal - plus most weren't paying taxes on that money). Was the sudden shutdown of Romney's secret Swiss bank account part of this amnesty program? We can't know unless and until he releases prior returns, like his dad who released 12 years of prior returns. And Mitt is still fiercely refusing to do so.

 

[Lakhota]

Still Voting For 'Mitt Romney'? - YouTube

 

[Chris]

Romney's Medicare Fraud....

In 1989, Romney led Bain Capital's purchase of Damon Corp., a medical testing company, and took a seat on the Board of Directors to better manage it. During Romney's four years, Bain tripled its investment, and Romney personally made $473,000 -- while Damon plumped its profits with Medicare fraud (running thousands of medical tests doctors didn't want, and billing Medicare for them). The company pled guilty to crimes committed during his tenure and paid a record fine of $119 million. Company President Joseph Isola pleaded no contest to fraud, and a vice president was also convicted.

Romney claims he "uncovered" the fraudulent claims and "took corrective action," but court records show that he did not notify prosecutors or stop the fraudulent billing. He just asked company lawyers what changes they could make to avoid prosecution, after the feds' LABSCAM prosecution targeted a different medical testing firm. The cheating continued, prosecutors say, until the day Bain sold the company to Corning. Furthermore, Damon Corp. was required to list in various SEC filings any significant legal risks it faced. Romney made no mention of the fraud he "uncovered," even though it led to a $119 million fine, the largest in history. Damon Corp. is another Bain acquisition that later went bankrupt, killing over a thousand jobs -- but not before Bain made $7.4 million in profit.

 

[SniperFire]

They paid $75 million for GST, right?

All reports Ive seen say they borrowed 8 million dollars to buy GST. That number seems incredibly low to me, but I have yet to see anything disputing it.

Oh that I believe.

And I know people who worked on the expansion they funded with the 100 million plus they borrowed.

I am not buying the whole 554 million in debt.....who'se going to loan that kind of money out against a paltry 100 million or so in assets ?...and those would not even be discounted yet.

Vidi has no clue. They paid $75 million for the company. Then they did their first bond offering and paid out $64 mm to their venture investor partners, and took a $36 mm dividend themselves.

A corporate vulture would have probably bailed at this point, but Bain re-invested $16.5mm in the $100mm remodernization themselves, and issued more debt on a merger with a South Carolina company. Again, not something a corporate raider would be doing.

 

[Lakhota]

Corporations are people - Romney is a serial killer - YouTube

 

[SniperFire]

Lakhota, why are you posting random spam which nobody reads?

 

[Lakhota]

 

[Lakhota]