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The Federal Bailout That Saved Mitt Romney

Synthaholic

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The Federal Bailout That Saved Mitt Romney

Government documents prove the candidate's mythology is just that


Mitt Romney likes to say he won't "apologize" for his success in business. But what he never says is "thank you" – to the American people – for the federal bailout of Bain & Company that made so much of his outsize wealth possible.

According to the candidate's mythology, Romney took leave of his duties at the private equity firm Bain Capital in 1990 and rode in on a white horse to lead a swift restructuring of Bain & Company, preventing the collapse of the consulting firm where his career began. When The Boston Globe reported on the rescue at the time of his Senate run against Ted Kennedy, campaign aides spun Romney as the wizard behind a "long-shot miracle," bragging that he had "saved bank depositors all over the country $30 million when he saved Bain & Company."

In fact, government documents on the bailout obtained by Rolling Stone show that the legend crafted by Romney is basically a lie. The federal records, obtained under the Freedom of Information Act, reveal that Romney's initial rescue attempt at Bain & Company was actually a disaster – leaving the firm so financially strapped that it had "no value as a going concern." Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.

With his selection of Paul Ryan as his running mate, Romney has made fiscal stewardship the centerpiece of his campaign. A banner at MittRomney.com declared, "We have a moral responsibility not to spend more than we take in." Romney also opposed the federal bailout for Detroit automakers, famously arguing that the industry should be forced into bankruptcy. Government bailouts, he insists, are "the wrong way to go."



More: Romney Is Lying. Again.

But the FDIC documents on the Bain deal – which were heavily redacted by the firm prior to release – show that as a wealthy businessman, Romney was willing to go to extremes to secure a federal bailout to serve his own interests. He had a lot at stake, both financially and politically. Had Bain & Company collapsed, insiders say, it would have dealt a grave setback to Bain Capital, where Romney went on to build a personal fortune valued at as much as $250 million. It would also have short-circuited his political career before it began, tagging Romney as a failed businessman unable to rescue his own firm.

"None of us wanted to see Bain be the laughingstock of the business world," recalls a longtime Romney lieutenant who asked not to be identified. "But Mitt's reputation was on the line."

*snip*

More at the link.
 
Last edited:

CrusaderFrank

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Poor Obama Fluffers.

Poor, poor little Fluffers.

They have nothing positive to say about their Messiah so they have to paint Romney as someone to fear.

Cheer up, when Obama loses I'm sure he'll want you to worship him in whatever country he decided to move to and rule
 

Meister

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At least you used Rollingstone as a source. They don't have a dog in the fight...:rolleyes:
 

Meister

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Poor Obama Fluffers.

Poor, poor little Fluffers.

They have nothing positive to say about their Messiah so they have to paint Romney as someone to fear.

Cheer up, when Obama loses I'm sure he'll want you to worship him in whatever country he decided to move to and rule

Yup, my sig line is words from Obama's own lips 4 years ago.
 
OP
Synthaholic

Synthaholic

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At least you used Rollingstone as a source. They don't have a dog in the fight...:rolleyes:
"Freedom of Information has a Liberal bias" must be your only response. :lol:
 
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Synthaholic

Synthaholic

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Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.

Of course, conservatives could care less, because they were always full of shit about being against bailouts.
 

auditor0007

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The Federal Bailout That Saved Mitt Romney

Government documents prove the candidate's mythology is just that


Mitt Romney likes to say he won't "apologize" for his success in business. But what he never says is "thank you" – to the American people – for the federal bailout of Bain & Company that made so much of his outsize wealth possible.

According to the candidate's mythology, Romney took leave of his duties at the private equity firm Bain Capital in 1990 and rode in on a white horse to lead a swift restructuring of Bain & Company, preventing the collapse of the consulting firm where his career began. When The Boston Globe reported on the rescue at the time of his Senate run against Ted Kennedy, campaign aides spun Romney as the wizard behind a "long-shot miracle," bragging that he had "saved bank depositors all over the country $30 million when he saved Bain & Company."

In fact, government documents on the bailout obtained by Rolling Stone show that the legend crafted by Romney is basically a lie. The federal records, obtained under the Freedom of Information Act, reveal that Romney's initial rescue attempt at Bain & Company was actually a disaster – leaving the firm so financially strapped that it had "no value as a going concern." Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.

With his selection of Paul Ryan as his running mate, Romney has made fiscal stewardship the centerpiece of his campaign. A banner at MittRomney.com declared, "We have a moral responsibility not to spend more than we take in." Romney also opposed the federal bailout for Detroit automakers, famously arguing that the industry should be forced into bankruptcy. Government bailouts, he insists, are "the wrong way to go."



More: Romney Is Lying. Again.

But the FDIC documents on the Bain deal – which were heavily redacted by the firm prior to release – show that as a wealthy businessman, Romney was willing to go to extremes to secure a federal bailout to serve his own interests. He had a lot at stake, both financially and politically. Had Bain & Company collapsed, insiders say, it would have dealt a grave setback to Bain Capital, where Romney went on to build a personal fortune valued at as much as $250 million. It would also have short-circuited his political career before it began, tagging Romney as a failed businessman unable to rescue his own firm.

"None of us wanted to see Bain be the laughingstock of the business world," recalls a longtime Romney lieutenant who asked not to be identified. "But Mitt's reputation was on the line."

*snip*

More at the link.

It's how he saved the Olympics too, with federal funds. It's amazing how so many cons just close their eyes to all of it.
 
OP
Synthaholic

Synthaholic

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The Federal Bailout That Saved Mitt Romney

Government documents prove the candidate's mythology is just that


Mitt Romney likes to say he won't "apologize" for his success in business. But what he never says is "thank you" – to the American people – for the federal bailout of Bain & Company that made so much of his outsize wealth possible.

According to the candidate's mythology, Romney took leave of his duties at the private equity firm Bain Capital in 1990 and rode in on a white horse to lead a swift restructuring of Bain & Company, preventing the collapse of the consulting firm where his career began. When The Boston Globe reported on the rescue at the time of his Senate run against Ted Kennedy, campaign aides spun Romney as the wizard behind a "long-shot miracle," bragging that he had "saved bank depositors all over the country $30 million when he saved Bain & Company."

In fact, government documents on the bailout obtained by Rolling Stone show that the legend crafted by Romney is basically a lie. The federal records, obtained under the Freedom of Information Act, reveal that Romney's initial rescue attempt at Bain & Company was actually a disaster – leaving the firm so financially strapped that it had "no value as a going concern." Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.

With his selection of Paul Ryan as his running mate, Romney has made fiscal stewardship the centerpiece of his campaign. A banner at MittRomney.com declared, "We have a moral responsibility not to spend more than we take in." Romney also opposed the federal bailout for Detroit automakers, famously arguing that the industry should be forced into bankruptcy. Government bailouts, he insists, are "the wrong way to go."



More: Romney Is Lying. Again.

But the FDIC documents on the Bain deal – which were heavily redacted by the firm prior to release – show that as a wealthy businessman, Romney was willing to go to extremes to secure a federal bailout to serve his own interests. He had a lot at stake, both financially and politically. Had Bain & Company collapsed, insiders say, it would have dealt a grave setback to Bain Capital, where Romney went on to build a personal fortune valued at as much as $250 million. It would also have short-circuited his political career before it began, tagging Romney as a failed businessman unable to rescue his own firm.

"None of us wanted to see Bain be the laughingstock of the business world," recalls a longtime Romney lieutenant who asked not to be identified. "But Mitt's reputation was on the line."

*snip*

More at the link.

It's how he saved the Olympics too, with federal funds. It's amazing how so many cons just close their eyes to all of it.
It's because they have no core values other than winning elections.
 

Lonestar_logic

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The FDIC doesn't receive any government funds, it is funded by member banks.

FDIC: Who is the FDIC?
Are you claiming the article is a lie?

Yes I would say so.

The article stated " In fact, Bain & Company was only rescued from the brink of collapse by the federal government. "

The fact is, the FDIC is an independent agency of the federal government. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities
 
OP
Synthaholic

Synthaholic

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The FDIC doesn't receive any government funds, it is funded by member banks.

FDIC: Who is the FDIC?
Are you claiming the article is a lie?

Yes I would say so.

The article stated " In fact, Bain & Company was only rescued from the brink of collapse by the federal government. "

The fact is, the FDIC is an independent agency of the federal government. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities


FALSE.

What does the 'F' in FDIC stand for?

Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.
 

auditor0007

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The FDIC doesn't receive any government funds, it is funded by member banks.

FDIC: Who is the FDIC?
Are you claiming the article is a lie?

Yes I would say so.

The article stated " In fact, Bain & Company was only rescued from the brink of collapse by the federal government. "

The fact is, the FDIC is an independent agency of the federal government. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities

If there ever comes a time when there are multiple bank failures, the FDIC would not have the funds to cover all of the losses; the feds would have to step in.

FDIC Insures $4.7 Trillion in Deposits with a $13.6 Billion Deposit Insurance Fund. This is Like Going into a Hurricane with a 99 Cent Store Umbrella.
 

Mr. Peepers

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They have nothing positive to say about their Messiah so they have to paint Romney as someone to fear.

Romney is someone to fear. He is an avowed corporate puppet with no morals. A Romney / Ryan presidency would be the last nail in the coffin for this country. It would be completely sold off to mega-coporations faster than your head would spin.
 
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OohPooPahDoo

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The FDIC doesn't receive any government funds, it is funded by member banks.

FDIC: Who is the FDIC?

The FDIC is backed by the full faith and credit of the United States Government. If it runs out of funds to pay depositors' claims the taxpayers foot the bill.

Also, since the FDIC also invests nearly all of its premiums in debts of the U.S. Treasury, a loss of X dollars from the FDIC means X dollars in Treasury obligations have to be redeemed that otherwise would not.

Full Faith and Credit of U.S. Government
FDIC deposit insurance is backed by the full faith and credit of the United States government. This means that the resources of the United States government stand behind FDIC-insured depositors.
http://www.fdic.gov/consumers/banking/confidence/symbol.html#Full
 

Toro

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My own experience with the press is that they will sensationalize a story to get attention and sell papers or drive traffic or whatever, even if that means distorting the true underlying story because what matters is money and ratings, not truth. I never understood why journalists rank at the bottom of professions in terms of respectability until my organization became the subject of a journalist with an agenda regardless of the facts.

I read the documents on the Rolling Stone website, and it appears that Rolling Stone is sensationalizing and distorting what happened.

First, saying this is a "bailout" is a flat out falsehood, if not a blatant lie. This was a debt restructuring, which happens all the time in business. Nobody in the restructuring business - zero, zip, nada - considers restructuring the debts of a company to be a bailout. Had Bain gone under, the FDIC would have gotten near zero. Instead, they received 30 cents on the dollar.

Second, the only reason why the FDIC was involved was because Bain had a loan with the Bank of New England. The Bank of New England went bust because it over-extended itself on mortgage loans during the 1980s, then, like 1,000 other banks, became insolvent when real estate values collapsed. Bain's loan was something like 0.03% of the assets of the Bank of New England. Had the bank not over-extended itself, this would have been a BFD, and hacks wouldn't be distorting the issue for gain. FTR, the FDIC has a higher rate of loan workouts simply because they inherit troubled loan books.

Third, the story portrays the Bain employees as being evil because they paid themselves bonuses. Guess what? That's how consultants get paid! Most of their comp is bonuses. If the Bank of New England was stupid and didn't build into their loan covenants some ceiling for bonus payouts, that's the fault of the bank, not Bain. The left-wing press gets all indignantly self-righteous when workers get stiffed by banks in insolvency proceedings but seems to have no problem invoking a double-standard when it is convenient for them to do so.

This story ranks up there with Donald Trump's stunning "news." Shame on Rolling Stone.
 
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OP
Synthaholic

Synthaholic

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Had Bain gone under, the FDIC would have gotten near zero. Instead, they received 30 cents on the dollar.

Ungrateful taxpayers!

Had the bank not over-extended itself, this would have been a BFD, and hacks wouldn't be distorting the issue for gain. FTR, the FDIC has a higher rate of loan workouts simply because they inherit troubled loan books.

Regardless, the taxpayers were on the hook.

Third, the story portrays the Bain employees as being evil because they paid themselves bonuses. Guess what? That's how consultants get paid!

Again, with taxpayer money!

Where is it written that the consultants can't be paid by the principles, out of their own pockets? God forbid that Mitt should have to play/risk with his own money, right?
 

Ravi

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Interesting. I didn't know about this but it does back up my belief that Mitten is incompetent and backed by people that know how to manipulate the system. In other words, his success in life is attributed to being the son of a politician.
 

Lonestar_logic

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Are you claiming the article is a lie?

Yes I would say so.

The article stated " In fact, Bain & Company was only rescued from the brink of collapse by the federal government. "

The fact is, the FDIC is an independent agency of the federal government. The FDIC receives no Congressional appropriations – it is funded by premiums that banks and thrift institutions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities


FALSE.

What does the 'F' in FDIC stand for?

Even worse, the federal bailout ultimately engineered by Romney screwed the FDIC – the bank insurance system backed by taxpayers – out of at least $10 million. And in an added insult, Romney rewarded top executives at Bain with hefty bonuses at the very moment that he was demanding his handout from the feds.

Using that logic, Federal Express is an arm of the government as is, Federal American Eagle which makes ammunition.
 

blastoff

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Wow, and this was so damaging to Romney that those MA dimocrats elected him governor in '02.

Here, so you don't have to scroll up to see Meister's sig line again:

If you don't have a record to run on, then you paint your opponent as someone people should run from. You make a big election about small things.-Obama
 

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