Romney and Bain maximized returns by firing workers and seeking government subsidies

[NNN0LHI]

http://www.latimes.com/news/nationworld/nation/la-na-romney-bain-20111204,0,343872.story

A closer look at Mitt Romney's job creation record

The Republican presidential contender says he learned about expanding employment during his time heading a private equity firm. But under his leadership, Bain Capital often maximized profits in part by firing workers.

By Tom Hamburger, Melanie Mason and Matea Gold, Washington Bureau

December 3, 2011, 7:23 p.m.
Reporting from Washington—

Shortly after Mitt Romney resigned from Bain Capital in 1999 to run the Olympics in Salt Lake City, potential investors received a prospectus touting the extraordinary profits earned by the private equity firm that Romney controlled for 15 years. snip

Bain expanded many of the companies it acquired. But like other leveraged-buyout firms, Romney and his team also maximized returns by firing workers, seeking government subsidies, and flipping companies quickly for large profits. Sometimes Bain investors gained even when companies slid into bankruptcy.

Romney himself became wealthy at Bain. He is now worth between $190 million and $250 million, much of it derived from his time running the investment firm, his campaign staffers have said.

Bain managers said their mission was clear. "I never thought of what I do for a living as job creation," said Marc B. Walpow, a former managing partner at Bain who worked closely with Romney for nine years before forming his own firm. "The primary goal of private equity is to create wealth for your investors."

[sharp_stick]

1. It's what a lot of these companies do

take a look at most of the deals arranged by that prototypical scumbag piece of shit Carl Icahn.

In he swoops, fires a shitload of people, cuts any non-capital expenses possible then sell it off for a profit or in parts.

[Blue_Tires]

4. Funny you mention Icahn

I was reading the full story of TWA's demise, and this guy is a world-class piece of shit

[julian09]

2. His father failed with American Motors

That is probably where he got his experience on bankrupting companies.

[tclambert]

3. He really is Gordon Gekko

"Greed . . . is good."