Now Romney is a Rapist

In their continued attacks on Bain Capital, the assortment of hard core Democrats prove that they do not understand private equity firms or free enterprise. In yet another attempt to create a reality that most Americans see as counter-factual, James Clyburn calls Mitt Romney a “rapist“:

Rep. Jim Clyburn (D-SC) told MNSBC Tuesday that he took issue with Mitt Romney’s work at Bain Capital, because it involved “raping companies.”

“This is not an attack on free enterprise,” he said. “I want say to you, I don’t take contributions from payday lenders. I refuse to do that. That’s free enterprise. But there’s something about that enterprise that I have a problem with. And there’s something about raping companies and leaving them in debt and setting up Swiss bank accounts and corporate businesses in the Grand Caymans. I have a serious problem with that.”

He went on to ask “what are we supposed to be comparing President Obama to if we don’t compare it to the record that this man has with Bain Capital? He doesn’t talk about his Massachusetts governorship.”

So what is the true Bain record?

That would be success:

The Journal analysis shows that in total, Bain produced about $2.5 billion in gains for its investors in the 77 deals, on about $1.1 billion invested. Overall, Bain recorded roughly 50% to 80% annual gains in this period, which experts said was among the best track records for buyout firms in that era.

What about the firms that went under?

The numbers, however, also reflect Bain’s investing style, which, particularly during the firm’s early years, was focused on smaller and sometimes troubled companies that Bain hoped to fix or build.

Bain was investing in “riskier deals,” said Steven N. Kaplan, a finance professor at the University of Chicago’s Booth School of Business. “For every one that went bankrupt, they had one that was a screaming success. The overall effect was terrific performance” for the firm’s investors.

Bain’s strategy was to go after smaller, riskier firms and try to turn them around.

Asked in an interview about Bain’s bankruptcy and failure rate, Mr. Romney said that in buyout deals, “our orientation was by and large to acquire businesses that were out of favor and in some cases in trouble.” He added that Bain wasn’t the type of firm that stripped companies and fired workers, but instead, “our approach was to try to build a business. We were not always successful.”

Not quite what Clyburn said they are, now are they?

But then Clyburn was one of the black congressmen who lied about the Tea Party protesters spitting at them and accused Sharon Angle of being responsible for Gabrielle Giffords’ shooting, so credibility is a bit of an issue here.

4 thoughts on “Now Romney is a Rapist

  1. Bain invested in troubled companies, companies that would most likely have failed without intervention. That some failed anyway is not a reflection on Romney’s abilities necessarily, but a natural consequence of the troubled milieu in which he worked.
    Obama may be able to make hay of Romney’s association with Bain, but only because so many Americans do not understand how businesses or the economy work.

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