If you didn’t believe it before..we’ve got proof now. Mitt…you’ve got some explaining to do.
To uncover the true story behind the Federal Deposit Insurance Corporation’s $10 million bailout of Mitt Romney and Bain & Company, Rolling Stone made a Freedom of Information Act request that forced the FDIC to release more than 500 of pages of records. (The government, which was owed more than $30 million in all, had become a creditor to Bain when it took over the failed Bank of New England in early 1991.)
Prior to releasing the documents, the FDIC allowed Bain & Company to scour and redact the records. Dozens of pages were blacked out entirely, on Bain’s claim that these nearly two-decade-old records contain secret “commercial or financial information.” Most pages looked something like the image at left.
After Romney took over and a ‘recovery’ was put in action…it began to fail. Bain’s revenues continued to decline, and the company was soon bleeding red ink. By March 1992 — barely nine months after the initial restructuring — Romney was hitting up the government and Bain’s other creditors for a bailout, asking that the firm be allowed to repay its debts at just 35 cents on the dollar.
The documents reveal that Romney had perverse leverage: The terms of the 1991 deal gave Bain the authority to reward its executives with massive bonuses, regardless of performance. If creditors refused to allow the firm to pay down its debt at a fraction of the legal value, in other words, Romney could begin to loot the firm’s cash reserves by doling out unmerited bonus pay.
Mitt…it’s time for you to come forward, release your taxes, and show us all…for once, that you’re as shady as they come.
Images via WENN