Romney reaped what GM did sow
GM Helped Bain Capital Profit By Giving Funding To Struggling Parts Supplier Owned By Investment Firm
HuffPost
HuffPost
Posted: 11/03/2012 3:52 pm EDT Updated: 11/03/2012 4:25 pm EDT
In 2000, a financially struggling plastics company that supplied car parts received emergency funding from auto manufacturers General Motors and Ford Co. The plastics company was owned by Bain Capital, the firm co-founded by Mitt Romney.
In other words, Romney, who has written against auto industry bailouts, profited via his involvement in Bain from a GM rescue of a car components supplier. Romney has recently come under fire from GM and Chrysler for airing dubious TV and radio spots suggesting the carmakers were shipping jobs to China.
Bain's management of Cambridge Industries was chronicled in a June story in The New York Times, which noted that Bain reaped over $10 million from the plastic manufacturer even as it went through bankruptcy, wiping out some of the other investors. According to a 2008 Detroit Free Press story, which is only available for purchase, Cambridge's bankruptcy meant more than 1,000 workers lost their jobs.
The full saga of Cambridge includes a political twist that The Times omitted: GM's decision to provide funding to its supplier as Bain managers let the company swing. According articles in the Detroit Free Press and Plastics News from 2000 accessed via Lexis Nexis, both GM and Ford gave unspecified financial aid to Cambridge. As GM and Ford supplied capital, Bain was extracting $950,000 a year in "advisory fees" from the ailing plastics company, according to The Times.
(More here.)
In 2000, a financially struggling plastics company that supplied car parts received emergency funding from auto manufacturers General Motors and Ford Co. The plastics company was owned by Bain Capital, the firm co-founded by Mitt Romney.
In other words, Romney, who has written against auto industry bailouts, profited via his involvement in Bain from a GM rescue of a car components supplier. Romney has recently come under fire from GM and Chrysler for airing dubious TV and radio spots suggesting the carmakers were shipping jobs to China.
Bain's management of Cambridge Industries was chronicled in a June story in The New York Times, which noted that Bain reaped over $10 million from the plastic manufacturer even as it went through bankruptcy, wiping out some of the other investors. According to a 2008 Detroit Free Press story, which is only available for purchase, Cambridge's bankruptcy meant more than 1,000 workers lost their jobs.
The full saga of Cambridge includes a political twist that The Times omitted: GM's decision to provide funding to its supplier as Bain managers let the company swing. According articles in the Detroit Free Press and Plastics News from 2000 accessed via Lexis Nexis, both GM and Ford gave unspecified financial aid to Cambridge. As GM and Ford supplied capital, Bain was extracting $950,000 a year in "advisory fees" from the ailing plastics company, according to The Times.
(More here.)
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