Tag Archives | bain capital

Bain Capital Now Owns Majority Of Britain’s Blood Supply

blood supplyVia Alternet, a great metaphor for vampire capitalism:

Mitt Romney’s private equity company Bain Capital is in the news again, this time for buying the majority of United Kingdom’s entire blood plasma supply. The Department of Health has sold the state-owned Plasma Reources UK (PRUK) to Bain Capital for £230 million.

The deal it is raising concerns about the seemingly limitless opportunities for privatization. PRUK had been dedicated to using low contamination risk populations, and critics fear the privatization of blood plasma could prompt profit-incentivized shortcuts and a contamination of blood supply.

Former Health Minister Lord Owen wrote to Prime Minister David Cameron earlier this year and urged him to stop the sale. “The world plasma supply line has been in the past contaminated and I fear it will almost certainly continue to be contaminated,” Owen wrote. “Is there no limit to what and how this coalition government will privatise?”

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The True Story Of Mitt Romney At Bain Capital

Via Rolling Stone, Matt Taibbi explains how what Bain does to the companies it takes over pretty much mirrors what Romney has in mind for America:

In Romney’s version of the tale, Bain Capital – which evolved into what is today known as a private equity firm – specialized in turning around moribund companies (Romney even wrote a book called Turnaround that complements his other nauseatingly self-complimentary book, No Apology) and helped create the Staples office-supply chain.

The reality is that toward the middle of his career at Bain, Romney made a fateful strategic decision: He moved away from creating companies like Staples through venture capital schemes, and toward a business model that involved borrowing huge sums of money to take over existing firms, then extracting value from them by force.

Here’s how Romney would go about “liberating” a company: A private equity firm like Bain typically seeks out floundering businesses with good cash flows.

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A Thousand Pages Of Romney’s Confidential Bain Documents Leaked

Gawker has obtained a vast cache of information on Mitt Romney’s finances, much of it involving the labyrinthine stashing of enormous sums of money in offshore hedge funds:

Today, we are publishing more than 950 pages of internal audits, financial statements, and private investor letters for 21 cryptically named entities in which Romney had invested—at minimum—more than $10 million as of 2011 (that number is based on the low end of ranges he has disclosed—the true number is almost certainly significantly higher).

Almost all of them are affiliated with Bain Capital, the secretive private equity firm Romney co-founded in 1984 and ran until his departure in 1999 (or 2002, depending on whom you ask). Many of them are offshore funds based in the Cayman Islands.

Together, they reveal the mind-numbing, maze-like, and deeply opaque complexity with which Romney has handled his wealth, the exotic tax-avoidance schemes available only to the preposterously wealthy that benefit him, the unlikely (for a right-wing religious Mormon) places that his money has ended up, and the deeply hypocritical distance between his own criticisms of Obama’s fiscal approach and his money managers’ embrace of those same policies.

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At Bain, Romney Led Investment In Aborted Fetus Disposal Firm

 A couple of years before realizing that he was pro-life, Mitt Romney netted $50 million for Bain Capital in the aborted fetus disposal business. Chalk it up to one of life’s little ironies. Mother Jones reveals:

The Huffington Post reported that in 1999 the GOP presidential candidate had been part of an investment group that invested $75 million in Stericycle, a medical-waste disposal firm that has been attacked by anti-abortion groups for disposing aborted fetuses collected from family planning clinics.

Documents filed by Bain and Stericycle with the SEC—and obtained by Mother Jones—list Romney as an active participant in the investment. And this deal helped Stericycle, a company with a poor safety record, grow, while yielding tens of millions of dollars in profits for Romney and his partners.

Despite the firm’s regulatory run-ins, the deal worked out well for Bain. In 2001, the Bain-Madison Dearborn partnership that had invested in the company sold 40 percent of its holdings in Stericycle for about $88 million—marking a hefty profit on its original investment of $75 million.

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How Bain Capital Helped BP Blow Up Deepwater Horizon

There’s no journalist working today quite like Greg Palast, who ferrets out information that “they” really would rather you didn’t focus on. Expect plenty more grenades to be lobbed in Mitt Romney’s direction, like this one from GregPalast.com:

I almost fell off the barstool when I read that it was Bain Capital (Mitt Romney, former CEO), that told oil giant BP it was a good idea to cut costs. The cuts would lead to death, mayhem and the destruction of the Gulf Coast (not to mention BP’s poisoning of Alaska, Africa, Central Asia and Colombia).

In 2007, after BP’s criminal negligence and penny-pinching led to the explosion at the BP oil refinery on the Gulf Coast, in Texas City, Texas, the company brought in industry pooh-bah James Baker, their lawyer and former Secretary of State, to write a report. Baker is Big Oil’s BFF, but in this case, he was horrified, and told BP to get its act together and spend some real money on operating safety.

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Are The Rich Worth A Damn?

nyt mag richA vigorous case for the super rich is argued by Edward Conard of Bain Capital in an interview with Adam Davidson for the New York Times Magazine:

Ever since the financial crisis started, we’ve heard plenty from the 1 percent. We’ve heard them giving defensive testimony in Congressional hearings or issuing anodyne statements flanked by lawyers and image consultants. They typically repeat platitudes about investment, risk-taking and job creation with the veiled contempt that the nation doesn’t understand their contribution. You get the sense that they’re afraid to say what they really believe. What do the superrich say when the cameras aren’t there?

With that in mind, I recently met Edward Conard on 57th Street and Madison Avenue, just outside his office at Bain Capital, the private-equity firm he helped build into a multibillion-dollar business by buying, fixing up and selling off companies at a profit. Conard, who retired a few years ago at 51, is not merely a member of the 1 percent.

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