Romney’s Bain Yielded Private Gains, Socialized Losses
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July 16 (Bloomberg) -- Mitt Romney touts his businessacumen and job-creation record as a key qualification for beingthe next U.S. president.
What’s clear from a review of the public record during hismanagement of the private-equity firm Bain Capital from 1985 to1999 is that Romney was fabulously successful in generating highreturns for its investors. He did so, in large part, throughheavy use of tax-deductible debt, usually to finance outsizeddividends for the firm’s partners and investors. When some ofthe investments went bad, workers and creditors felt most of thepain. Romney privatized the gains and socialized the losses.