Indecision 2012 - Bain Man

  • Aired:  01/31/12
  •  | Views: 133,126

Mitt Romney touts his experience at Bain Capital as a strength, but not the experience with leveraged buyouts. (5:02)

( CHEERS AND APPLAUSE )

>> Jon: AS YOU KNOW, TODAY IS THE FLORIDA PRIMARY, AND WILLARD MITTARD ROM NARD IS

SUPPOSED TO HAVE AN EXCELLENT NIGHT IN FLORIDA.

HIS NEARLY ASSURED VICTORY THERE, CONFIRMATION OF HIS PITCH TO VOTERS.

>> I SPENT MY LIFE IN THE PRIVATE SECTOR.

I UNDERSTAND HOW THE ECONOMY WORKS.

I WORKED AT ONE COMPANY, BAIN,

FOR 25 YEARS.

IF WE WANT TO GET JOBS AGAIN IN THIS COUNTRY, IT'S GOING TO BE

HELPFUL TO HAVE A PERSON WHO'S HAD A JOB IN THE PRIVATE SECTOR TO CRATE JOBS IN THE PRIVATE SECTOR.

( CHEERS AND APPLAUSE ).

>> Jon: IT WOULD ALSO BE HELPFUL IF THAT PERSON WAS RUGGEDLY HANDSOME.

( LAUGHTER ) A JAW LIKE CUT MARBLE.

SIDEBURNS AS WHITE AS THE DRIVEN SNOW.

( LAUGHTER ) IS VERY HANDSOME.

ROMNEY'S BIG PITCH IS THE TIME THAT HE SPENT AS THE FOUNDING C.E.O. OF BAIN CAPITAL, WHICH

EVEN THOUGH BAIN CAPITAL SOUNDS LIKE IT'S BEEN NAMED AFTER A BATMAN VILLAIN AND SOUNDS LOOK A

COMPANY WHOSE LOGO IS A GIANT FIST SQUEEZING THE GLOBAL, WE ARE ASSURED BAIN CAPITAL IS IN

NO WAY EVIL.

>> BAIN, FOR THE MOST PART, THEY HAVE A LOT OF DIFFERENT BUSINESSES, BUT THEIR PRIMARY

BUSINESS IS PRIVATE EQUITY.

>> BAIN CAPITAL, FOR EXAMPLE,

LOOKS FOR COMPANIES THAT ARE VULNERABLE BUT STILL HAVE A DECENT BUSINESS MODEL, AND THEY

SAY, "WE CAN MAKE IT BETTER."

>> Jon: GEE WHIZ, THESE GUYS SOUND GREAT.

THEY COME IN AND FIX UP UP WHAT'S WRONG, LIKE WHAT THE

"YEAR EYED GUYS" DID FOR SAY THE STRAIT GUYS.

OR WHAT JIMMY SMITSS DOES FOR TV SHOWS.

IT'S LIKE WHEN WAYNE BOUGHT WESLEY JESSON VISION CARE FOR SIX MILLION BUCKS.

THEY WERE IN THE SPECIALTY CONTACT LENS BUSINESSES.

WESLEY JESSON SPECIALTY CONTACT LENSES FOR WHEN YOU ABSOLUTELY,

POSITIVELY, WANT TO FREAK OUT YOUR FRIENDS.

( LAUGHTER ) SO BAIN REFOCUSED ON THE CORE

BUSINESS, CUT AD SPENDING, AND TWO YEARS LATER TOOK WESLEY JESSON PUBLIC AND BROUGHT

THEMSELVES IN A COOL $300 MILLION PROFIT.

CHA-CHING, ( BLEEP ).

OR THERE'S DADE INTERNATIONAL AIR, HALF CENTURY OLD MEDICAL SUPPLY COMPANY BAIN BOUGHT IN 1994.

THEY AGAIN REFOCUSED THE BUSINESS BY CLOSING DOWN ITS FACILITIES IN PUERTO RICO AND

MIAMI, CUTTING 850 JOBS,

FREEZING PENSIONS AT A THIRD PLANT, AND SLASHING DADE'S RESEARCH AND DEVELOPMENT BUDGET,

ALL OF WHICH EARNED BAIN A COOL $342 MILLION AS A REWARD FOR STEERING DADE INTERNATIONAL INTO BANKRUPTCY.

WAIT A MINUTE.

WAIT.

THEY GET THE MONEY ANYWAY?

THEY GET-- BAIN GETS THE $342 MILLION EVEN IF THEY PUT THE COMPANY IN-- YOU KNOW WHAT WOULD

HAVE HELPED DADE NOT GO BANKRUPT?

$342 MILLION.

( LAUGHTER ) ( APPLAUSE )

YOU KNOW WHAT?

NO, THAT'S NOT RIGHT.

I GUESS IT'S FAIR.

BAIN RISKED THEIR OWN MONEY TO BUY THE COMPANY.

SO THAT RISK SHOULD BE REWARDED.

>> BAIN CAPITAL WOULD EVENTUALLY MOVE ON TO MORE LUCRATIVE AND RISKY INVESTMENT STRATEGIES

CALLED LEVERAGED BUYOUTS.

YOU BUY A COMPANY WITH BORROWED MONEY, THEN USE THE COMPANY'S ASSETS AS COLLATERAL.

>> Jon: WOW.

THAT IS A BRILLIANT STRATEGY.

LEVERAGED BUYOUT.

IT'S LIKE PUTTING 10% DOWN ON A CAR, THEN USING THE VALUE OF THAT CAR TO GET ANOTHER LOAN AND

REPAY YOURSELF THAT 10% AND MAYBE A LITTLE 20% ON TOP FOR YOUR TROUBLES, AND THEN WALKING

AWAY, LEAVING THE CAR ON THE HOOK FOR THE PAYMENT.

( LAUGHTER ) BUT FOR BAIN CAPITAL TO BORROW

MONEY FROM OTHER PEOPLE KNOWING THAT THOSE DEBTS MIGHT NEVER BE REPAID WHILE STILL PROFITING THEMSELVES?

I DON'T KNOW.

I DON'T KNOW HOW I FEEL ABOUT THAT BUSINESS PRACTICE.

DOES IT MAKE ANYONE ELSE UNEASY?

>> I THINK IT'S SIMPLY IMMORAL FOR US AS A NATION AND AS A

GENERATION TO KEEP SPENDING MORE AND MORE MONEY BY BORROWING MONEY FROM OTHER PEOPLE, KNOWING

THAT THOSE DEBT WILL NEVER BE REPAID DURING OUR LIFETIMES.

>> Jon: I DON'T KNOW WHO THAT RUGGEDLY HANDSOME GUY IS,

BUT I AGREE 100%.

SO THERE YOU GO.

MITT ROMNEY'S PITCH TO AMERICANS APPEARS TO BE ELECT ME AS YOUR PRESIDENT.

I HAVE 25 YEARS OF BUSINESS EXPERIENCE DOING SOMETHING I BELIEVE THIS COUNTRY SHOULD

NEVER, EVER DO.

( LAUGHTER ) ( APPLAUSE )

WE'LL BE RIGHT BACK.

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