Wednesday, August 29, 2012

Romney Got A Federal Bailout For Bain And A $4 Million Consulting Fee

The Daily Beast sums up a Rolling Stone article that will be on my evening reading list:
Mitt Romney helped secure a federal bailout to keep Bain & Company from collapsing, according to government documents obtained by Rolling Stone – then had the company pay Bain Capital a cool $4 million consulting fee for his services. According to the documents, the bailout Romney cobbled together cost the FDIC $10 million, and came at a time when the company had “no value as a going concern.” The documents from the FDIC indicate that Bain & Company, where Romney began his hugely profitable business career, got into trouble around the same time it spun off Bain Capital. Romney has taken credit for saving Bain & Company, saying that he did it out of a “sense of obligation and duty” to the company where he cut his teeth.
When the budget deficit is trillions, $10 million is the equivalent of pocket lint.  When the recipient is a venture fund that destroyed jobs and businesses for profit, the $10 million reeks of waste, fraud, and abuse. When a Presidential candidate who campaigns on the fact that he did indeed "build that" without government help, takes 40% of the bailout for a "consulting fee," the hypocrisy is, to steal a great tagline, priceless.