Now that Mitt Romney is the front runner in the race to be the GOP’s presidential nominee, his Republican rivals are piling on with attacks.
Mitt touts himself as a super-capitalist who “created” 100,000 jobs while he was CEO of Bain Capital. Wikipedia describes Bain as:
“a Boston-headquartered alternative asset management and financial services company that specializes in private equity, venture capital, credit and public market investments…. Beginning in 1989, the firm, which began as a venture capital source investing in start-up companies, adjusted its strategy to focus on leveraged buyouts and growth capital investments in more mature companies.”
In 1977, after graduating cum laude with an MBA and a J.D. from Harvard University, Mitt began working for Bain & Company, a management consulting firm in Boston, and became vice president a year later. In 1984, Romney left Bain & Company to co-found the spin-off private equity investment firm, Bain Capital, which began with fewer than 10 employees. Romney headed Bain Capital as its general partner and CEO for 14 years. (Read more here).
Here is how Wikipedia describes Romney’s time at Bain:
“In 1991, Mitt Romney temporarily left Bain Capital to rejoin and lead Bain & Co. as interim CEO. Bringing along two executives from Bain Capital, Romney began a traveling campaign to rally employees at all Bain offices globally. Romney also negotiated a complex settlement between the Bain partnership and the firm’s lenders, including a $10 million reduction in the $38 million Bain owed the Bank of New England. Although in the role for just one year before returning to Bain Capital, Romney’s work had three profound impacts on the firm. First, ownership was officially shifted from the owners to the firm’s 70 general partners. Second, transparency in the firm’s finances increased dramatically (e.g. partners were able to know each other’s salaries). Third, Bill Bain relinquished ownership in the firm that carried his name. Within a year, Bain & Company bounced back to profitability without major partner defections and the groundwork was laid for a period of steady growth.”
But Rick Perry says what Romney practiced at Bain was “vulture capitalism” instead of venture capitalism. Though she’s not running, Sarah Palin too says criticism of Romney‘s record at Bain Capital is fair game and that voters should get “proof” of the 100,000 jobs Romney said he had helped create while he headed the private equity firm. Sarah’s husband, Todd, recently endorsed Newt Gingrich.
Here’s a video created by WinningOurFuture.com, which claims the video is “Not authorized by any candidate or candidate’s committee.” However if you go on its website, you’ll see that’s it’s a pro-Newt Gingrich SuperPAC.
Assuming this video is true, it’s a case of a pot calling a kettle black because Newt not only can’t claim to be a “job creator,” he actually contributed to the tanking of the U.S. economy. After he left Congress, between 2001 and 2010, Newt was a consultant to the government-sponsored home mortgage company Freddie Mac, netting a total $1.6 million in remuneration. Freddie Mac, together with its twin, the similarly cutsey-named Fannie Mae, recklessly extended mortgage loans to people who were unqualified. In so doing, Freddie and Fannie contributed much to the housing bubble and the disastrous bursting of that bubble which began America’s plunge into the Great Recession in 2008.
Newt is going after Mitt with a viciousness that verges on a personal vendetta. So much for Ronald Reagan’s 11th Commandment: “Thou shalt not attack a fellow Republican.” Earlier in the Iowa campaign, Newt had also declared that he would not vote for Ron Paul should the latter become the GOP nominee.