July 14, 2012
-- by Dave Johnson
Key point: those SEC forms reassure Bain partners that Romney WAS running things after 1999. Tons of $$ involved. If he wasn't that's fraud.
Mitt Romney says he left Bain in 1999, and had nothing further to do with managing the company. The reason this is important is that soon after 1999 Bain was doing all kinds of things to send jobs to China. They were not just sending jobs to China, they were investing in companies that "pioneered" all kinds of ways to make money helping other companies move jobs out off the county.
The Obama campaign ran ads about this, so "fact checking organizations" tried to help out the Romney campaign by saying that Romney departed Bain in 1999. Romney is demanding an apology from Obama. (Never mind that Romney, running the firm or not, did nothing to STOP Bain from sending our jobs to China...)
BUT they didn't get away with that. Talking Points Memo turned up SEC documents filed by Bain that claimed Romney was "Chief Executive Officer, President and Managing Director" at the time Romney claims he was not there.
Romney still claims he wasn't there, that this filing was just a technicality. But this really matters, because the firm had reason to assure business partners that Romney was still running the company. On May 16 I was co-hosting the Fairness Radio radio show. We interviewed a former Bain partner, Ed Conard, who said that Bain's competitive advantage was the reputation of its management. This is why partners came to them and invested, why companies let them take over, etc. So the people at Bain were very conscious of this.
Bain partnered with investors who were putting tens of millions into deals. They wanted reassurance that the Bain management they were comfortable with was in operation. If Bain was claiming Romney was still there in SEC documents, I think this was fraud, it was about reassuring partners and co-investors and businesses they were buying that their management was in place, stable, and had the reputation that was so important to them.
This is a big deal.
Click to hear Fairness Radio show interview with Ed Conard. Starting at 21:15 minutes Conard talks about the value of Bain's business reputation.
It's at 103:00 in the following, (but the slider is easier to use in the above link) (PS host introduces me as Huffington Post -- I'm not an employee there.):
Posted by Dave Johnson at July 14, 2012 10:31 AM
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