What would you call the government bailing out underfunded pension plans raided by Bain........hmmmmmm?
There was never a government bailout of any of the 240 companies Bain invested in or acquired. There was one instance when Bain acquired a faltering GS Steel and the pension fund had already been depleted so that the Federal Pension Guaranty was on the hoof to guarantee the assets to the union employees. Bain during the acquisition did not assume the liability for the already depleted pension fund. No sane equity investor is going to take on that water. The Bain offer to the owners factored in the fact that they would not be assuming the liability of the previous owners with respect to the depleted pension fund.That liability would remain with the previous owner. A perfectly valid negotiating point. Bain restructured the company, held it for a few years, tried to make a go of it but the union was recalcitrant and the company went under. So the Federal Pension Guaranty kicked in and covered the employees pension shortfall. Bain did not profit from the Pension Guaranty as those funds went to the employees.