Obama presses Bain attacks despite D grumbles
The Philadelphia Inquirer's Thomas Fitzgerald covers politics and political animals under the big tent.
Obama presses Bain attacks despite D grumbles
Thomas Fitzgerald, Inquirer Politics Writer
President Obama’s re-election campaign is continuing its attacks on Republican Mitt Romney as a job killing profiteer during his career in private equity, launching a web video Monday centered on the experience of workers at Ampad, a paper company.
Bain Capital, where Romney was CEO, bought Ampad in 1992, mostly with borrowed money, then acquired other paper companies over the next several years. By 1999, the company carried $400 million in debt, and it went bankrupt in 2000. Bain realized a profit of $100 million on its initial $5 million cash investment.
The latest Obama video focuses on a paper company in Marion, Ind. that Bain-controlled Ampad bought in 1994; all 250 workers were immediately fired and made to reapply for their jobs – at much lower wages and benefits. That plant closed one year later. The video features interviews with several workers who saw their middle-class lives fall apart.
Romney, who was governor of Massachusetts from 2003-2007, touts his Bain experience as an important credential as a job creator. Obama strategists believe there is a darker story: of a man who pursued profits at the expense of workers, an enemy of the middle class.
The Obama campaign came under fire from a top surrogate on the Bain issue on Sunday, when Newark Mayor Cory Booker said on NBC’s Meet the Press that he found the attacks “nauseating.”
"I'm not going to sit here and indict private equity. To me we're getting to a ridiculous point in America," Booker said on Meet. “If you look at the totality of Bain Capital's record, they've done a lot to support businesses, to grow businesses, and this, to me, I'm very uncomfortable with.”
Later Booker released a video, presumably after heat from the Obama camp, in which he sought to clarify his comments. He said that Romney’s record at Bain was fair game, and added he had been making the point that there are too many negative attacks on both sides of the presidential race.
Last week, the Obama campaign highlighted a GST Steel, a Kansas City-company that was bought by Bain and then went under (though it was also under heavy pressure from imports of cheaper foreign steel.)
The Romney campaign Monday called the Obama attacks “an assault on the free-enterprise system.”
Here is the web video that the Obama campaign is circulating :
- No he didn't you lie. Here is a google search for
"booker romney vulture capitalist"
http://www.google.com/#hl=en&sclient=psy-ab&q=booker+romney+vulture+capitalist&oq=booker+romney+vulture+capitalist&aq=f&aqi=q-n1&aql=&gs_l=serp.3..33i38.2664.12167.0.12309.24.24.0.0.0.0.302.3622.2j17j2j2.23.0...1.0.UFqPmManl6w&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.,cf.osb&fp=896704d8d7d7947c&biw=1280&bih=878— towelie - Reported unemployment rate is around 8.1%. The effective unemployment rate hovers somewhere around 18%.
According to the Center for Labor Market Studies at Northeastern University, about 53.6 percent of men and women under the age of 25 who hold bachelor’s degrees were jobless or underemployed last year, the most in at least 11 years.
According to the Pew Research Center, if we broaden the age group to 18- to 29-year-olds, an estimated 37 percent are unemployed or out of the work force, the highest share in more than three decades.
Bain sounds pretty good to me compared to the current adminstration.
— Norton - I enjoy reading the comments from everyone. But, what I enjoy more is the fact that I can read comments from everyone who do not live in fear to express their opinions. Whether I happen to agree with them or not. Please don't forget this!— mattbagley
- The devil's in the details- something lacking in both the Obama ad and under this big guy's tent.
The company referenced but not named is SCM. It's no secret how legitimate equity firms are run. Like those who borrow all but the small personal investment they put forth to purchase questionable properties, fix them up in order to then "flip" them, private equities work on a similar principle. They are highly leveraged.
In the early '90's, Bain got caught in a cycle it could not manage without sustaining larger losses or closure. With 5 million down and 35 million in loans into obtaining AP&P, along came the emergence of large office super stores. AP&P could not compete, especially when asian competition was thrown into the mix. So, Bain made a mistake. It's managers thought that by buying up other paper goods businesses it could broaden its appeal and meet its competitors on equal footing. That's where SCM, a hanging file company entered the picture. Bain thought that by adding SCM to its holdings, it could better position itself in the challenging market place of selling paper goods.
During this time, Romney was on a leave of absence running against Ted Kennedy for the senate. So now you know the rest of the (untold) story.— lefty - Obama attacks Romney because he has nothing positive to say about himself. Obama = Failure— psyrus
- Obama can rip Bain but no one's allowed to point out that the government fired 100,000 GM workers and GM still owes taxpayers at least $15 billion. Who would you want to be your private equity firm?— AvoidSundanceVacations
- ...and the Messiah really invested the taxpayer's money wisely in the Solyndra debacle. The guy needs an Economics 101 course, and should fire all his financial advisers, especially Geithner who should be in jail for not paying his taxes.
— dogman5 - President Obama will win easily and all you rePUKElicans can whine for 4 more years.— sewell guy
- "rePUKElicans" quite classy there sewell guy, gotta respect someone who brings so much hate to a political message board. Hey sewell guy, you do realize we are all Americans and in this together right? While you may disagree with the other side, you do realize this isn't as "good guy/bad guy" as a kids movie right? There is no true "villian" Just candidates who think things should be done differently then you. Stop with the hate. — towelie
- sewell guy, Maybe, but what the gluck does your comment add to the discussion that maybe your boy was stretching the truth by avoiding the facts? Do you have anything that would show otherwise?— lefty
- How did Obama do as the head of a coorporation. Oh that is right he is a life long politician. And so far as head of the United States I think he has caused more layoffs and bankruptcies then Bain.— harrismojo
- Four more years of Joe B telling wheel chair bound people to "stand up and take a bow". If that's Hope & Change, then I beleive we put the wrong guys in office.— Norton
- To deny that firms like Bain capital don't have a place in a capitalistic economy is nonsense. To also deny that the Bain Capitals of the world generally profit by doing exactly what is described here is also nonsense.
Mitt is what he is.
4 years ago the republicans rejected him over the clearly diminished John McCain (who then chose Palin to prove the point)
What has Mitt done to make them love him since?
Run for president, that's all he's done.
And the whining about this being unfair is comical. Repubs are just like the bully rich kids in school - once you bloddy a nose a bit they go crying to mommy and daddy.— Owatagoofiam - why shouldn't the wealthy have all the money. the middle class is too stupid to think for themselves.— rubberguard
- Uh-Oh, Cory Booker better be careful -- you don't want to end up on Obama's "enemies list". Then you'll have stooges like Bunch and Fitzgibbon here pounding on you with their deceitful prevarications.
Or, maybe that's Obama's plan to stimulate manufacturing. Two huge factories, one in Washington DC, and one in Chicago. Manufacturing lies.— Mr. Smith
You can reach Tom Fitzgerald at 215-854-2718 or tfitzgerald@phillynews.com.
Reach Thomas at tfitzgerald@phillynews.com.
