Reuters reports in “Special report: Romney’s steel skeleton in the Bain closet” that Romney’s Bain Capital took a $44 million government bailout in 2002 from the federal U.S. Pension Benefit Guaranty Corp after they determined that Bain had underfunded its steel mill’s pension by $44 million. Workers were denied the severance pay and health insurance theyd been promised, and their pension benefits were cut by as much as $400 a month. Nevertheless, Bain profited on the deal, receiving $12 million on its $8 million initial investment and at least $4.5 million in consulting fees.
The New York Times reported in their article “After a Romney Deal, Profits and Then Layoffs” that Bain structured its deals so it would be hard for Romney and his partners not to come out ahead. In the case of their medical company Dade, the creditors threatened litigation against Bain, accusing them of “professional negligence” and “unjust enrichment.” Bain argued that the claims were baseless, but agreed to forgo about $68 million owed to them by Dade.
Romney has acknowledged having second thoughts about some of the deals he drove, saying his post-Bain career in government had sensitized him to the consequences of his decisions as a businessman. He may be sorry but I don’t think Obama and the Democrats will forgive and forget this year even if we do!
If he had second thoughts it’s because he was caught.