6/3/2012 8:06 PM
A cut and paste from a check the facts article. Seems the way I read it, Bain has a pretty good record at providing capital, and I can agree that is important for our economy, rather have them invest if they can rather then the government. Sometimes they can't invest, like GM and Chrysler and the government had to come through. But by the looks of this article, it seems Gov. Romney's record running Bain isn't as good as maybe other managers. Maybe his Bain record isn't something he should be touting? I guess he could talk about his record as Gov of Mass? (of course there is that little issue about a state health care reform). I have no confidence on his foreign policy expertise, although we didn't think that was President Obama's strong suit and he did pretty good.
CHECK the FACTS
Editor's note: This Sunday feature will try to vet common misconcepÂtions or false statements in the news. The answer comes from FactCheck.org, which is a project of the Annenberg Public Policy Center, and other sources.
A letter Bain Capital sent to its investors is now becomÂing a talking point for Mitt Romney surrogates. But once again the company letter, which boasts of Bain's sucÂcess, is being misrepresented — this time by Ed Gillespie, a senior adviser to the Romney campaign.
Gillespie claimed that "less than 5 percent" of Bain's inÂvestments "ended up in bankÂruptcy." But that's what Bain claims occurred over its enÂtire 28-year history. The Wall Street Journal reported that 22 percent of companies "Bain invested in while Mr.
Romney led the firm" filed for bankruptcy or went out of business, and another 8 perÂcent lost all of the money that Bain had invested.
Gillespie said "80 percent of the companies [Romney] invested in grew." Again, Bain was referring to its enÂtire 28-year history — not just the 14-year period when RomÂney was in charge. There is no separate accounting of revenue growth at BainÂowned companies during Romney's years.
Gillespie gets his figures from a March 13 letter that Bain Capital sent to its inÂvestors. Romney co-founded Bain in 1984. But the letter covered Bain's entire 28-year history, not just the 14 years (1984 to early 1999) when Romney was in charge. Also, Bain's figures cannot be inÂdependently verified and its information is presented in the best possible light for the company.
Let's take the bankruptcy claim.
Bain is referring to 350 companies that it invested in over a 28-year period, and it is including only companies that filed for bankruptcy "while under our control." But the Wall Street Journal tracked the success or failure of 77 companies in which Bain invested from 1984 to FebruÂary 1999, when Romney was in charge. Also, the Journal tracked the performance of those 77 companies for eight years, so it includes some companies that filed for bankÂruptcy after Bain relinÂquished control. As a result, the Wall Street Journal found that a far highÂer percentage of companies filed for bankruptcy or went out of business.
Wall Street Journal, Jan. 9: The Wall Street Journal, aimÂing for a comprehensive asÂsessment, examined 77 busiÂnesses Bain invested in while Mr. Romney led the firm from its 1984 start until early 1999, to see how they fared during Bain's involvement and shortly afterward.
Among the findings: 22 percent either filed for bankÂruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses. An additional 8% ran into so much trouble that all of the money Bain invested was lost. Likewise, Gillespie misrepÂresented Bain's letter when he said of Romney: "The fact is 80 percent of the compaÂnies he invested in grew."
Once again, the Bain letter referred to its entire 28-year history.
This is the second time in less than a week in which a top Romney surrogate has misrepresented the Bain letter in defense of Romney.
As we previously reported, former New Hampshire Gov.
John Sununu wrongly claimed in a campaign conference call with reporters that Bain CapÂital was "able to save jobs … about 80 percent of the tim" at companies in which it had invested. In that case, Sununu completely flubbed the talkÂing point. Bain's letter said revenue grew at 80 percent of the companies in which it invested. Companies can grow revenues without necesÂsarily saving or creating jobs.
Bain's letter did not provide a net jobs figure. In fact, Bain said "experts agree that calÂculating net job growth across a portfolio of compaÂnies is difficult to do with precision."
– Eugene Kiely
Mel
Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO