Must Read on Mitt

You must read “When Romney ran Bain Capital, his word was not his bond,” by William D. Cohan in today’s Washington Post.   Cohan was a deal-adviser on Wall Street for 17 years and worked for Lazard Freres, Merrill Lynch, and J. P. Morgan Chase.  Some excerpts:

“Seemingly alone among private-equity firms, Romney’s Bain Capital was a master at bait-and-switching Wall Street bankers to get its hands on the companies that provided the raw material for its financial alchemy.  Other private-equity firms I worked with extensively over the years — Forstmann Little, KKR, TPG and the Carlyle Group, among them — never dared attempt the audacious strategy that Bain partners employed with great alacrity and little shame.  Call it the real Bain way.

“In my experience, Bain Capital did all that it could to game the system by consistently offering the highest prices during the early rounds of bidding — only to try to low-ball the price after it had weeded out competitiors.

“By bidding high early, Bain would win a coveted spot in the later rounds of the auction….

“This is the moment when Bain Capital would become especially crafty.  In my experience — which I heard echoed often by my colleagues around Wall Street  — Bain would seek to be the highest bidder at the end of the formal process in order to be the firm selected to negotiate alone with the seller, putting itself in the exclusive, competition-free zone.  Then, when all other competitors had been essentially vanquished and the purchase contract was under negotiation,  Bain would suddenly begin finding all sorts of warts, bruises and faults with the company being sold.  Soon enough, that near-final Bain bid…would begin to fall, often significantly.

“Once Bain’s real thoughts about the price were revealed, the seller either had to suck it up and accept the lower price, or negotiate with a new buyer, but with far less leverage.

“By the end of my days on Wall Street in 2004, I found the real Bain way so counterproductive that I no longer included Bain Capital on my buyer’s lists of private-equity firms for a company I was selling.

“I don’t know if Bain Capital still uses the bait-and-switch technique when it competes in auctuions these days (I’m told that it doesn’t).  But that was the way the firm’s partners competed when Romney ran the place.

“I have no idea how Romney might behave in office.  I do believe, however, that when he was running Bain Capital, his word was not his bond.”  Emphasis added.

So in the Wall Street world of tough, ruthless SOB’s, Mitt was the toughest, most ruthless SOB of all.

Please pass this article around to everyone you know.  Mittens is not the “oh, gosh, “oh, my goodness” guy he pretends to be on the trail.


One comment on “Must Read on Mitt

  1. Willard once again emerges as Mitt the shit!

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