Mitt Romney, American Parasite: A Look at Bain Capital
Mitt Romney has survived the serial challenges by circus clowns that was the GOP primary, and now he is out to sell the American public on his vision for the country.
Photo by Jayme Halbritter David Foster, union official who dealt with Bain.
Some workers who have experienced that vision have some qualms about it.
Romney ran Bain Capital, an investment company. As Village Voice Media's Pete Kotz reports:
His formula was simple: Bain would purchase a firm with little money down, then begin extracting huge management fees and paying Romney and his investors enormous dividends.
The result was that previously profitable companies were now burdened with debt. But much like the Enron boys, Romney's battery of MBAs fancied themselves the smartest guys in the room. It didn't matter if a company manufactured bicycles or contact lenses; they were certain they could run it better than anyone else.
Bain would slash costs, jettison workers, reposition product lines and merge its new companies with other firms. With luck, they'd be able to dump the firm in a few years for millions more than they'd paid for it.
Read "American Parasite," a special online-only feature this week on the Houston Press Web site.
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