The war of the Super PACs has officially begun and the pro-Newt Gingrich pac “Winning Our Future” just released an online thirty minute film which will strike at former Massachusetts Governor Mitt Romney’s time at Bain Capital. Titled “King of Bain - When Mitt Romney Came to Town,” the movie is described on the website as:
“Capitalism made America great - free markets, innovation, hard work - the building blocks of the American Dream. But in the wrong hands some of those dreams can turn into nightmares. This film is about one raider and his firm and how they destroyed that dream for thousands of Americans and their families - Mitt Romney and Bain Capital.”
Former Speaker of the House Newt Gingrich has told a reporter he had not seen the movie but he referenced the allegations in the film on Tuesday afternoon on a campaign stop in Manchester when speaking to reporters who asked him about the most troubling aspect for him about Mr. Romney’s career at Bain Capital.
“I think you have to look at the article that I’m now told is a Reuters article. I only heard of it because a TV reporter asked me about it. The (writer of the) article actually proceeded to ask me about this so-called movie and the article apparently outlined in detail that Bain Capitol acquired a company, in essence looted it, and then laid off 1700 people. Now if that’s accurate—and if there’s three, four, or five examples like that, I think that’s troubling,” Mr. Gingrich said.
According to a Wall Street Journal analysis on 77 businesses that Bain invested in while Romney headed up the firm between 1984 and the beginning of 1999, 22 percent of those businesses either filed for bankruptcy reorganization or shut down by the end of the eighth year after Bain had initially invested in them. WSJ notes this would happen, “sometimes with substantial job losses” and that “an additional 8% ran into so much trouble that all of the money Bain invested was lost.”
However, the flip side to that finding also showed that Bain also create great returns for their investors, but that the “bulk of these came from just a small number of its investments. Ten deals produced more than 70% of the dollar gains.”
“Those of us who believe in free markets and those of us who believe, in fact, the whole goal of investment is entrepreneurship and job creation. We’re finding it pretty hard to justify for rich people to figure out clever legal ways to loot a company and leaving 1700 families without a job. Again, I think Governor Romney will have ample opportunity to explain it. I think you all will want him to do a rather in depth press conference explaining Bain Capitol once all the facts come out.”