HOME



Digby's Hullabaloo
2801 Ocean Park Blvd.
Box 157
Santa Monica, Ca 90405



Facebook: Digby Parton

Twitter:
@digby56
@Gaius_Publius
@BloggersRUs (Tom Sullivan)
@spockosbrain



emails:
Digby:
thedigbyblog at gmail
Dennis:
satniteflix at gmail
Gaius:
publius.gaius at gmail
Tom:
tpostsully at gmail
Spocko:
Spockosbrain at gmail
tristero:
Richardein at me.com








Infomania

Salon
Buzzflash
Mother Jones
Raw Story
Huffington Post
Slate
Crooks and Liars
American Prospect
New Republic


Denofcinema.com: Saturday Night at the Movies by Dennis Hartley review archive

January 2003 February 2003 March 2003 April 2003 May 2003 June 2003 July 2003 August 2003 September 2003 October 2003 November 2003 December 2003 January 2004 February 2004 March 2004 April 2004 May 2004 June 2004 July 2004 August 2004 September 2004 October 2004 November 2004 December 2004 January 2005 February 2005 March 2005 April 2005 May 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 October 2008 November 2008 December 2008 January 2009 February 2009 March 2009 April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 April 2010 May 2010 June 2010 July 2010 August 2010 September 2010 October 2010 November 2010 December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018


 

This page is powered by Blogger. Isn't yours?

Hullabaloo


Thursday, July 12, 2012

 
What happened at Bain in 1999?

by digby

I have been wondering obsessively why Romney is so keen on saying that he left Bain in 99 instead of 02. I mean it's not as if he's running from his career there in general. So why is so adamant that he not be associated with it during that period? The easiest answer is that he stupidly said it without really thinking through the implications of holding the title and being compensated while allegedly being uninvolved and now he's stuck with it because of his FEC filing.

On the other hand, there are some things beyond the usual off-shoring and layoffs that he might not want it known that he profited from. Henry Blodget writes:

[T]he reason this issue is important is that Romney wants to disavow responsibility for anything Bain or Bain companies did after early 1999.
And one of the things that Bain did after early 1999, as Dan Primack of Fortune points out, is invest in a company called Stericycle whose services included the disposal of aborted fetuses.

For obvious reasons, an investment in a company that performed this service might hurt Romney's standing with the right-to-life voters in the Republican party, even though Romney was pro-choice at the time the investment was made...

As "Chairman, CEO, and President" of Bain, he damn well would have remained responsible for these decisions. In which case, saying he had "left" and implying that he had no involvement or responsibility whatsoever is highly misleading.
The CEO of a car company may not have input into the decision of what specific cars the company makes or where it makes them (though he or she obviously could if s/he wanted), but this CEO is unequivocally responsible for these decisions.
Similarly, if Romney was CEO of Bain at the time it made the Stericycle decision, as well as the company layoffs and other unpleasant facts that Candidate Romney would like to disown, he certainly was responsible for these decisions.


You have to wonder how the true believers would feel about that little deal. Once being pro-choice is one thing. Profiting from abortion may just be a bridge too far for people who have compared that company to Nazis.

Update: I missed this original comprehensive piece last week from Mother Jones breaking the story of the disposal business:

The SEC filing lists assorted Bain-related entities that were part of the deal, including Bain Capital (BCI), Bain Capital Partners VI (BCP VI), Sankaty High Yield Asset Investors (a Bermuda-based Bain affiliate), and Brookside Capital Investors (a Bain offshoot). And it notes that Romney was the "sole shareholder, Chairman, Chief Executive Officer and President of BCI, BCP VI Inc., Brookside Inc. and Sankaty Ltd."

The document also states that Romney "may be deemed to share voting and dispositive power with respect to" 2,116,588 shares of common stock in Stericycle "in his capacity as sole shareholder" of the Bain entities that invested in the company. That was about 11 percent of the outstanding shares of common stock. (The whole $75 million investment won Bain, Romney, and their partners 22.64 percent of the firm's stock—the largest bloc among the firm's owners.) The original copy of the filing was signed by Romney.

Another SEC document filed November 30, 1999, by Stericycle also names Romney as an individual who holds "voting and dispositive power" with respect to the stock owned by Bain. If Romney had fully retired from the private equity firm he founded, why would he be the only Bain executive named as the person in control of this large amount of Stericycle stock?


Good question.

Update II:

You should check out this StopStericycle site. One of their major campaigns is to out the executives of the company and warn away investors:
If you are a trader of stocks or a holder of mutual funds, please check your portfolio for the company Stericycle (SRCL). If you find that you are partaking in the blood money of Stericycle, pull out now. Your investment in Stericycle helps to financially support Stericycle’s daily collaboration with the abortion industry.

Additionally, please check your portfolio for the companies listed on our top shareholders, mutual fund investors and other investors lists. These companies are profiting from Stericycle’s blood money, and if you invest in them, you are as well. We encourage you to remove your investment until these corporations stop supporting Stericycle.

Correspondingly, it is important to also contact the corporate officers and fund managers of these companies via phone, postal mail or e-mail and inform them that you have ceased supporting their company until they discontinue their investment in Stericycle. You may click on the names of each company on our profiteers lists to obtain their respective contact information.


Update III: I should make it clear that I have no idea if Romney was aware of the abortion tie (doubtful) or even if the company was doing it in 1999. But I'm guessing that either way he doesn't want to be associated with it. For obvious reasons.

.