Greed and Debt: The True Story of Mitt Romney and Bain Capital - GoFuckYourself.com

HushMoney · 09-01-2012, 04:30 PM

Rolling Stone Greed and Debt: The True Story of Mitt Romney and Bain Capital

"'I'm not a Romney guy, because I'm not a Bain guy," says Lenny Patnode, in an Irish pub in the factory town of Pittsfield, Massachusetts. "But I'm not an Obama guy, either. Just so you know."

I feel bad even asking Patnode about Romney. Big and burly, with white hair and the thick forearms of a man who's stocked a shelf or two in his lifetime, he seems to belong to an era before things like leveraged debt even existed. For 38 years, Patnode worked for a company called KB Toys in Pittsfield. He was the longest-serving employee in the company's history, opening some of the firm's first mall stores, making some of its canniest product buys ("Tamagotchi pets," he says, beaming, "and Tech-Decks, too"), traveling all over the world to help build an empire that at its peak included 1,300 stores. "There were times when I worked seven days a week, 16 hours a day," he says. "I opened three stores in two months once."

Then in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. The debacle that followed serves as a prime example of the conflict between the old model of American business, built from the ground up with sweat and industry know-how, and the new globalist model, the Romney model, which uses leverage as a weapon of high-speed conquest.

In a typical private-equity fragging, Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans ? $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO.

Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months." Patnode, by contrast, was fired in December 2008, after almost four decades on the job. Like other employees, he didn't get a single day's severance."

2012 · 09-01-2012, 04:45 PM

Quote:

Originally Posted by HushMoney

Rolling Stone Greed and Debt: The True Story of Mitt Romney and Bain Capital

"'I'm not a Romney guy, because I'm not a Bain guy," says Lenny Patnode, in an Irish pub in the factory town of Pittsfield, Massachusetts. "But I'm not an Obama guy, either. Just so you know."

I feel bad even asking Patnode about Romney. Big and burly, with white hair and the thick forearms of a man who's stocked a shelf or two in his lifetime, he seems to belong to an era before things like leveraged debt even existed. For 38 years, Patnode worked for a company called KB Toys in Pittsfield. He was the longest-serving employee in the company's history, opening some of the firm's first mall stores, making some of its canniest product buys ("Tamagotchi pets," he says, beaming, "and Tech-Decks, too"), traveling all over the world to help build an empire that at its peak included 1,300 stores. "There were times when I worked seven days a week, 16 hours a day," he says. "I opened three stores in two months once."

Then in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. The debacle that followed serves as a prime example of the conflict between the old model of American business, built from the ground up with sweat and industry know-how, and the new globalist model, the Romney model, which uses leverage as a weapon of high-speed conquest.

In a typical private-equity fragging, Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans ? $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO.

Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months." Patnode, by contrast, was fired in December 2008, after almost four decades on the job. Like other employees, he didn't get a single day's severance."

DudeRick · 09-01-2012, 04:48 PM

Quote:

The video King of Bain: When Mitt Romney Came to Town, claims that "Romney and Bain bought the 80-year-old company in 2000, loaded KB Toys with millions in debt, then used the money to repurchase Bain stock. The debt was too staggering. By 2004, 365 stores had closed." The clear implication is that Romney and Bain were responsible for the toy company's demise.

Bain Capital bought KB Toys in 2000, after Romney retired. He wouldn't have been involved in financial decisions, though he would have profited from them. The company did choose to take on debt, buy stock and pay investors a dividend, even as the toy store chain struggled to find its niche in a volatile industry.

But toy industry analysts agree that far more than debt drove KB Toys into bankruptcy court. It was a troubled company before Bain bought it, and Bain wasn't able to fix it. Did more debt hurt? Probably. But to blame Romney and Bain for the chain's downfall is to ignore critical facts that would give a different impression. We rate this claim Mostly False.

http://www.politifact.com/truth-o-me...emise-kb-toys/

HushMoney · 09-01-2012, 04:59 PM

Quote:

Originally Posted by DudeRick

http://www.politifact.com/truth-o-me...emise-kb-toys/

They say that Romney wasn't in control of the company at that time in the article. why don't you read the whole thing? He started Bain and was the driving force behind what they became. He did many LBO's before he left and controlled the outcomes, most of which were just like this one.

DudeRick · 09-01-2012, 05:04 PM

Quote:

Originally Posted by HushMoney

They say that Romney wasn't in control of the company at that time in the article. why don't you read the whole thing? He started Bain and was the driving force behind what they became. He did many LBO's before he left and controlled the outcomes, most of which were just like this one.

Why don't you take the point, you are full of shit!

Quote:

We rate this claim Mostly False.

2012 · 09-01-2012, 05:06 PM

i am making sure that I vote this time around. This time I would like to make a difference. To matter in the future of our great cuntry. It matters man

HushMoney · 09-01-2012, 05:28 PM

Quote:

Originally Posted by DudeRick

Why don't you take the point, you are full of shit!

Sorry to get your panties in a bunch, however I didn't write the article, and you, obviously are too skeered to read the whole thing.

The website you linked to is only talking about that LBO which I quoted, not the many other LBO's in the article and they base it on a video that blamed Mitt AND Bain, and of course on quotes from Bain executives. This story is about both Mitt AND Bain, and no where does it mention Mitt being at Bain at the time of the KB toys fiasco, they expressly say he had already left.

Might wanna try some fiber in your diet. Maybe switch to decaff while you're at it.

AsianDivaGirlsWebDude · 09-01-2012, 05:53 PM

ADG

Rochard · 09-01-2012, 06:01 PM

Quote:

Originally Posted by DudeRick

http://www.politifact.com/truth-o-me...emise-kb-toys/

Quote:

Originally Posted by HushMoney

They say that Romney wasn't in control of the company at that time in the article. why don't you read the whole thing? He started Bain and was the driving force behind what they became. He did many LBO's before he left and controlled the outcomes, most of which were just like this one.

Here's how the article closes:

Bain Capital bought KB Toys in 2000, after Romney retired. He wouldn't have been involved in financial decisions, though he would have profited from them. The company did choose to take on debt, buy stock and pay investors a dividend, even as the toy store chain struggled to find its niche in a volatile industry.

Seems to me Romney profited, and that's that.

This is what Bain Capital does (or did). They borrowed money to buy stressed companies, sell off what is profitable, attempt to restructure the rest, and collect a huge management fee. It doesn't matter to them if the company survives or not or who losses their job in the process. They make money no matter what.

SmutHammer · 09-01-2012, 06:11 PM

Sounds like a smart business move for themselves, So it seems they are able to do what is needed in business, If getting rid of the US debt is his goal, Then judging from the past I'm confident Romney will succeed.

blazin · 09-02-2012, 02:48 AM

Quote:

Originally Posted by Ed Hammer

Sounds like a smart business move for themselves, So it seems they are able to do what is needed in business, If getting rid of the US debt is his goal, Then judging from the past I'm confident Romney will succeed.

Yeah... great! Just like voting republican is a smart move for the very rich... to hell with anyone else who is not fortunate enough to earn the big bucks.

directfiesta · 09-02-2012, 05:42 AM

Quote:

Originally Posted by Ed Hammer

Sounds like a smart business move for themselves, So it seems they are able to do what is needed in business, If getting rid of the US debt is his goal, Then judging from the past I'm confident Romney will succeed.

wow .... companies are people ...

bronco67 · 09-02-2012, 07:09 AM

Quote:

Originally Posted by Rochard

Here's how the article closes:

Bain Capital bought KB Toys in 2000, after Romney retired. He wouldn't have been involved in financial decisions, though he would have profited from them. The company did choose to take on debt, buy stock and pay investors a dividend, even as the toy store chain struggled to find its niche in a volatile industry.

Seems to me Romney profited, and that's that.

This is what Bain Capital does (or did). They borrowed money to buy stressed companies, sell off what is profitable, attempt to restructure the rest, and collect a huge management fee. It doesn't matter to them if the company survives or not or who losses their job in the process. They make money no matter what.

basically, he's Gordon Gekko, except not as cool.

GregE · 09-02-2012, 08:35 AM

Quote:

Originally Posted by Ed Hammer

Sounds like a smart business move for themselves...

Yes.

For themselves it was indeed.

Quote:

Originally Posted by Ed Hammer

So it seems they are able to do what is needed in business, If getting rid of the US debt is his goal, Then judging from the past I'm confident Romney will succeed.

Judging from the past, the American middle class will thereby be leveraged and treated in precisely the same manner as every other entity that Bain has touched.

Romney is no more about improving the lot of the general public than he was about "helping" the businesses he took over.

Barry-xlovecam · 09-02-2012, 09:19 AM

Globalism has nothing to do with it.

Quote:

Globalism can have at least two different and opposing meanings. One meaning is the attitude or policy of placing the interests of the entire world above those of individual nations.[1] Another is viewing the entire world as a proper sphere for one nation to project political influence.[2]

Quote:

glob·al·ism (glb-lzm)
n.
A national geopolitical policy in which the entire world is regarded as the appropriate sphere for a state's influence.
global·ist n.

Bain is/was about OPM and the leveraging and liquidation of undervalued assets.

Bain Capital acted like a parasite what does than make those associated with it?

2MuchMark · 09-02-2012, 09:46 AM

Romney is a fucking prick and a liar. That being said I don't think the KB toys thing was entirely his fault or Bains, but Bain sucking all that money out of KB certainly didn't help.

Oh, and Romney said he retired from Bain in 1999. Either lied about this or he lied to the SEC because he was around after 1999.

http://www.salon.com/2012/07/02/when...ey_leave_bain/

Fucking Romney.

Mutt · 09-02-2012, 10:05 AM

Quote:

Originally Posted by Barry-xlovecam

Globalism has nothing to do with it.

Bain is/was about OPM and the leveraging and liquidation of undervalued assets.

Bain Capital acted like a parasite what does than make those associated with it?

There's another definition for a 'globalist' like Romney - they are the super rich, they have no allegiance to any country, no real connections to their communities, their only allegiance is to more wealth.

GrantMercury · 09-02-2012, 10:08 AM

Quote:

Originally Posted by HushMoney

Rolling Stone Greed and Debt: The True Story of Mitt Romney and Bain Capital

"'I'm not a Romney guy, because I'm not a Bain guy," says Lenny Patnode, in an Irish pub in the factory town of Pittsfield, Massachusetts. "But I'm not an Obama guy, either. Just so you know."

I feel bad even asking Patnode about Romney. Big and burly, with white hair and the thick forearms of a man who's stocked a shelf or two in his lifetime, he seems to belong to an era before things like leveraged debt even existed. For 38 years, Patnode worked for a company called KB Toys in Pittsfield. He was the longest-serving employee in the company's history, opening some of the firm's first mall stores, making some of its canniest product buys ("Tamagotchi pets," he says, beaming, "and Tech-Decks, too"), traveling all over the world to help build an empire that at its peak included 1,300 stores. "There were times when I worked seven days a week, 16 hours a day," he says. "I opened three stores in two months once."

Then in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. The debacle that followed serves as a prime example of the conflict between the old model of American business, built from the ground up with sweat and industry know-how, and the new globalist model, the Romney model, which uses leverage as a weapon of high-speed conquest.

In a typical private-equity fragging, Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans ? $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO.

Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months." Patnode, by contrast, was fired in December 2008, after almost four decades on the job. Like other employees, he didn't get a single day's severance."

Thanks much for linking to this story. Someone had mentioned it to me but I'd forgotten to check it out.

Mitt RobMe makes money the old fashioned way. Steals it. And then he hides the booty offshore like any savvy pirate. And there are Americans who think Mitt wants to HELP THEM? JFC.

GrantMercury · 09-02-2012, 10:19 AM

Quote:

Originally Posted by Mutt

There's another definition for a 'globalist' like Romney - they are the super rich, they have no allegiance to any country, no real connections to their communities, their only allegiance is to more wealth.

Exactly. Money is their drug. Think a junky cares how he gets more junk?

GrantMercury · 09-02-2012, 10:30 AM

Quote:

Originally Posted by **********

Romney is a fucking prick and a liar. That being said I don't think the KB toys thing was entirely his fault or Bains, but Bain sucking all that money out of KB certainly didn't help.

Oh, and Romney said he retired from Bain in 1999. Either lied about this or he lied to the SEC because he was around after 1999.

http://www.salon.com/2012/07/02/when...ey_leave_bain/

Fucking Romney.

Yup. Mitt radiates insincerity. He's a blatant snake oil salesman. He was born into the world a handsome millionaire and expanded his fortune not by producing, but by destroying. He's the living embodiment of the wrong path America has taken. He has never produced anything tangible - omly wealth for himself and Bain investors. He hides his tax returns from us because he knows it would give him away. And people would put this scumbag in charge?

GrantMercury · 09-02-2012, 10:33 AM

Quote:

Originally Posted by GregE

Yes.

For themselves it was indeed.

Judging from the past, the American middle class will thereby be leveraged and treated in precisely the same manner as every other entity that Bain has touched.

Romney is no more about improving the lot of the general public than he was about "helping" the businesses he took over.

Great post. Thanks for that.

Paul Markham · 09-02-2012, 02:25 PM

Quote:

Originally Posted by GrantMercury

Yup. Mitt radiates insincerity. He's a blatant snake oil salesman. He was born into the world a handsome millionaire and expanded his fortune not by producing, but by destroying. He's the living embodiment of the wrong path America has taken. He has never produced anything tangible - omly wealth for himself and Bain investors. He hides his tax returns from us because he knows it would give him away. And people would put this scumbag in charge?

One thing is sure. No matter how much of a mess or success he makes of being President, should he get elected, he will leave office an EXTREMELY richer man.

Mutt · 09-02-2012, 02:58 PM

"Mitt Romney isn't blue or red. He's an archipelago man. That's a big reason that voters have been slow to warm up to him. From LBJ to Bill Clinton to George W. Bush to Sarah Palin, Americans like their politicians to sound like they're from somewhere, to be human symbols of our love affair with small towns, the girl next door, the little pink houses of Mellencamp myth. Most of those mythical American towns grew up around factories ? think chocolate bars from Hershey, baseball bats from Louisville, cereals from Battle Creek. Deep down, what scares voters in both parties the most is the thought that these unique and vital places are vanishing or eroding ? overrun by immigrants or the forces of globalism or both, with giant Walmarts descending like spaceships to replace the corner grocer, the family barber and the local hardware store, and 1,000 cable channels replacing the school dance and the gossip at the local diner.

Obama ran on "change" in 2008, but Mitt Romney represents a far more real and seismic shift in the American landscape. Romney is the frontman and apostle of an economic revolution, in which transactions are manufactured instead of products, wealth is generated without accompanying prosperity, and Cayman Islands partnerships are lovingly erected and nurtured while American communities fall apart. The entire purpose of the business model that Romney helped pioneer is to move money into the archipelago from the places outside it, using massive amounts of taxpayer-subsidized debt to enrich a handful of billionaires. It's a vision of society that's crazy, vicious and almost unbelievably selfish, yet it's running for president, and it has a chance of winning. Perhaps that change is coming whether we like it or not. Perhaps Mitt Romney is the best man to manage the transition. But it seems a little early to vote for that kind of wholesale surrender."

09-01-2012, 04:30 PM	#1
HushMoney Confirmed User Industry Role: Join Date: Apr 2005 Location: Hermosa Beach & Miami, FL. Posts: 2,256	Greed and Debt: The True Story of Mitt Romney and Bain Capital Rolling Stone Greed and Debt: The True Story of Mitt Romney and Bain Capital "'I'm not a Romney guy, because I'm not a Bain guy," says Lenny Patnode, in an Irish pub in the factory town of Pittsfield, Massachusetts. "But I'm not an Obama guy, either. Just so you know." I feel bad even asking Patnode about Romney. Big and burly, with white hair and the thick forearms of a man who's stocked a shelf or two in his lifetime, he seems to belong to an era before things like leveraged debt even existed. For 38 years, Patnode worked for a company called KB Toys in Pittsfield. He was the longest-serving employee in the company's history, opening some of the firm's first mall stores, making some of its canniest product buys ("Tamagotchi pets," he says, beaming, "and Tech-Decks, too"), traveling all over the world to help build an empire that at its peak included 1,300 stores. "There were times when I worked seven days a week, 16 hours a day," he says. "I opened three stores in two months once." Then in 2000, right before Romney gave up his ownership stake in Bain Capital, the firm targeted KB Toys. The debacle that followed serves as a prime example of the conflict between the old model of American business, built from the ground up with sweat and industry know-how, and the new globalist model, the Romney model, which uses leverage as a weapon of high-speed conquest. In a typical private-equity fragging, Bain put up a mere $18 million to acquire KB Toys and got big banks to finance the remaining $302 million it needed. Less than a year and a half after the purchase, Bain decided to give itself a gift known as a "dividend recapitalization." The firm induced KB Toys to redeem $121 million in stock and take out more than $66 million in bank loans ? $83 million of which went directly into the pockets of Bain's owners and investors, including Romney. "The dividend recap is like borrowing someone else's credit card to take out a cash advance, and then leaving them to pay it off," says Heather Slavkin Corzo, who monitors private equity takeovers as the senior legal policy adviser for the AFL-CIO. Bain ended up earning a return of at least 370 percent on the deal, while KB Toys fell into bankruptcy, saddled with millions in debt. KB's former parent company, Big Lots, alleged in bankruptcy court that Bain's "unjustified" return on the dividend recap was actually "900 percent in a mere 16 months." Patnode, by contrast, was fired in December 2008, after almost four decades on the job. Like other employees, he didn't get a single day's severance." __________________ Hushmoney.com Interracialpass Hushpass

09-01-2012, 05:06 PM	#6
2012 So Fucking What Industry Role: Join Date: Jul 2006 Posts: 17,189	i am making sure that I vote this time around. This time I would like to make a difference. To matter in the future of our great cuntry. It matters man __________________ best host: Webair \| best sponsor: Kink \| best coder: 688218966 \| Go Fuck Yourself Last edited by 2012; 09-01-2012 at 05:08 PM.. Reason: vote !

09-01-2012, 05:53 PM	#8
AsianDivaGirlsWebDude Purveyor, Fine Asian Porn Industry Role: Join Date: Jul 2004 Location: San Francisco Bay Area Posts: 38,323	ADG __________________ Asian Diva Girls - Exclusive Photos and Videos Asian Diva Girls Affiliate Program (50% ccBill Revshare)

09-02-2012, 09:46 AM	#16
2MuchMark Videochat Solutions Industry Role: Join Date: Aug 2004 Location: Canada Posts: 49,108	Romney is a fucking prick and a liar. That being said I don't think the KB toys thing was entirely his fault or Bains, but Bain sucking all that money out of KB certainly didn't help. Oh, and Romney said he retired from Bain in 1999. Either lied about this or he lied to the SEC because he was around after 1999. http://www.salon.com/2012/07/02/when...ey_leave_bain/ Fucking Romney. __________________ Custom Coding \| Videochat Solutions \| Age Verification \| IT Help & Support www.2Much.net

09-02-2012, 02:58 PM	#23
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	"Mitt Romney isn't blue or red. He's an archipelago man. That's a big reason that voters have been slow to warm up to him. From LBJ to Bill Clinton to George W. Bush to Sarah Palin, Americans like their politicians to sound like they're from somewhere, to be human symbols of our love affair with small towns, the girl next door, the little pink houses of Mellencamp myth. Most of those mythical American towns grew up around factories ? think chocolate bars from Hershey, baseball bats from Louisville, cereals from Battle Creek. Deep down, what scares voters in both parties the most is the thought that these unique and vital places are vanishing or eroding ? overrun by immigrants or the forces of globalism or both, with giant Walmarts descending like spaceships to replace the corner grocer, the family barber and the local hardware store, and 1,000 cable channels replacing the school dance and the gossip at the local diner. Obama ran on "change" in 2008, but Mitt Romney represents a far more real and seismic shift in the American landscape. Romney is the frontman and apostle of an economic revolution, in which transactions are manufactured instead of products, wealth is generated without accompanying prosperity, and Cayman Islands partnerships are lovingly erected and nurtured while American communities fall apart. The entire purpose of the business model that Romney helped pioneer is to move money into the archipelago from the places outside it, using massive amounts of taxpayer-subsidized debt to enrich a handful of billionaires. It's a vision of society that's crazy, vicious and almost unbelievably selfish, yet it's running for president, and it has a chance of winning. Perhaps that change is coming whether we like it or not. Perhaps Mitt Romney is the best man to manage the transition. But it seems a little early to vote for that kind of wholesale surrender." __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

09-01-2012, 06:11 PM	#10
SmutHammer Confirmed User Industry Role: Join Date: Mar 2008 Posts: 4,159	Sounds like a smart business move for themselves, So it seems they are able to do what is needed in business, If getting rid of the US debt is his goal, Then judging from the past I'm confident Romney will succeed.