Matt Taibbi Reveals How Romney Made His Fortune -- It Ain't Pretty, and He Shouldn't Be Proud of It
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AMY GOODMAN: You know, just for the record, Governor Perry’s comment about Mitt Romney was very interesting. He said, "They’re vultures that sitting out there on the tree limb waiting for the company to get sick, and then they swoop in, they eat the carcass, they leave with that, and they leave the skeleton."
MATT TAIBBI: That’s exactly right. That’s exactly what they do. Again, they borrow money, they take over the company, the company now has this massive new debt burden. So, if the couple was already in trouble, if it was already having trouble meeting its bottom line, suddenly, not only does it have its old problems, now it has, you know, $300 million in new debt service that it has to pay. So it might be, you know, paying millions and millions of dollars every month.
A great example is Dunkin’ Donuts, whose parent company was taken over a couple years ago by a combination of Bain Capital and the Carlyle Group. Dunkin’ was induced to do one of those dividend recapitalizations. They had to pay half-a-billion dollars to their new masters. And just to pay the debt service on the loan they took out to make that payment to Bain and Carlyle, they’re going to have to sell like two-and-a-half million cups of coffee every month just to pay the debt service. So, that’s extraordinary. They are—they’re essentially vultures who hang out waiting for companies to get sick, then they forcibly take them over, and they extract fees, commissions and dividends, by force, essentially.
AMY GOODMAN: Earlier this week, Democracy Now! spoke to two workers from what’s now Sensata Technologies, which Bain Capital is majority owner. A hundred seventy workers there at the Sensata plant in Freeport, Illinois, are calling on Romney to help save their jobs from being shipped to China. The plant manufactures sensors and controls that are used in aircraft and automobiles. This is Tom Gaulrapp, a former—well, he’s a Sensata worker now, talking about the response that they’ve received.
TOM GAULRAPP: We’re there trying to save our jobs, and we were called communists. For trying to save our jobs from going to China from the United States, we were called communists. They—if there hadn’t been a large police group in there, I’m sure we would have been more threatened. They started this "U.S.A." chant. It’s like, yes, we’re all for the U.S.A., too. That’s what we’re trying to do here. We’re trying to keep well-paying manufacturing jobs from being moved out of this country to China. And they make it sound like we’re not patriotic. And it boggles the mind as to what they’re thinking.
AMY GOODMAN: That’s Tom Gaulrapp, and he’s describing going to an Iowa Romney campaign event last week—Romney was maybe seven rows in front of him—and asking about their jobs, their company owned by Bain, being sent to China. In fact, some of them went to China, the workers, to train the workers in China, so that they could take over their jobs. Their last day will be the Friday before the elections. They’ll be on the unemployment line to apply for unemployment on Monday. On Tuesday, they vote. Can you comment on this situation, Matt?
MATT TAIBBI: Yeah, no, it’s absolutely typical of a private equity transaction. I think one of the glaring misconceptions about this kind of business that’s persisted throughout Mitt Romney’s campaign for the presidency is that what these companies do is turn around and fix companies, that they’re in the business of helping these companies. Romney constantly uses this term, that he—that, you know, "help." "I’m either helping this firm, or I’m helping it turn around." He wrote a book called Turnaround. But they are not in the business of turning companies around and creating jobs. That is a complete mischaracterization. What they’re in the business of doing is repaying the investors who lent them the money to take over those companies. The workers are completely irrelevant in this scheme.