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Matt Taibbi: 'Mitt Romney Is One Of The Greatest And Most Irresponsible Debt Creators Of All Time'

Matt Taibbi Bashes Mitt Romney As One Of The 'Most Irresponsible Debt Creators Of All Time'
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Economics writer

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According to Rolling Stone contributing editor Matt Taibbi, Mitt Romney made his fortune exploiting two strategies that the Republican presidential candidate now decries: creating massive amounts of debt and milking federal government handouts.

"Mitt Romney is one of the greatest and most irresponsible debt creators of all time," Taibbi wrote in a Rolling Stone article published online Wednesday. He also slammed the hypocrisy of what he considers Romney's scare tactics about the national debt: "By making debt the centerpiece of his campaign, Romney was making a calculated bluff of historic dimensions."

While Romney -- whom Taibbi describes as a "new and improved" Gordon Gekko -- ran Bain Capital, he would saddle acquired companies with the same debt he used to buy those companies, as well as steep management fees. This burden forced many Bain-run companies to fire workers and cut employees' pay and benefits. It amounted to "raping and pillaging," Taibbi wrote.

Moreover, according to Taibbi, Romney's Bain Capital was able to "loot" so many companies because it could deduct taxes on the interest on the debt used for the takeovers.

"Romney is the frontman and apostle of an economic revolution, in which transactions are manufactured instead of products, wealth is generated without accompanying prosperity, and Cayman Islands partnerships are lovingly erected and nurtured while American communities fall apart," Taibbi concluded. "It seems a little early to vote for that kind of wholesale surrender."

You can read Matt Taibbi's full takedown of Mitt Romney in Rolling Stone here.

Romney's Bain Claims Don't Hold Up
SEC Filings List Romney As 'Chief Executive Officer'(01 of11)
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According to the Boston Globe, Securites and Exchange Commission documents filed by Bain Capital after February 1999 list Romney as the private equity firm's "stole stockholder, chairman of the board, chief executive officer, and president." (credit:AP)
$100,000+ Salary(02 of11)
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The Globe also found financial disclosure forms filed by Romney that indicate he still owned 100 percent of Bain in 2002, and earned at least $100,000 as an "executive" for the firm in 2001 and 2002. (credit:AP)
2002 Testimony(03 of11)
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As The Huffington Post reported, sworn testimony given by Romney in 2002 undermined his claims that he left Bain in 1999. In that testimony, given as part of a hearing to determine if he had sufficient Massachusetts residency to run for governor, Romney said that he "remained on the board" of the LifeLike Co., which Bain held a stake in at the time.LifeLike's 2000 corporate filing, filed with the state of Colorado, lists Romney as a director. (credit:AP)
More SEC Filings(04 of11)
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HuffPost's Jason Cherkis and Ryan Grim identified at least six documents filed by Bain Capital with the SEC from 1999 to 2001 that were signed by Mitt Romney. Most of the documents refer to Romney as the "reporting person." (credit:AP)
'Managing Member' In 2002(05 of11)
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HuffPost reported on a 2002 corporate document filed with the state of Massachusetts that shows Romney listed as one of two managing members of Bain Capital Investors, an entity of the private equity firm. (credit:AP)
Signed Documents After 1999(06 of11)
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Romney signed an SEC filing in November 1999 pursuant to Bain's partial acquisition of medical-waste firm Stericycle, Mother Jones reported. The filing noted that he was the "sole shareholder, Chairman, Chief Executive Officer and President" of the Bain entities involved in the $75 million deal. (credit:AP)
2001 & 2002 SEC Filings(07 of11)
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Talking Points Memo uncovered two SEC filings from July 2000 and February 2001. In both, Romney lists his "principal occupation" as "Managing Director of Bain Capital, Inc." (credit:AP)
1999 News Reports(08 of11)
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As Slate's Dave Weigel pointed out, Romney's campaign has cited news reports from 1999 that clearly state that Romney left Bain in 1999. However, those same news reports state that Romney would still be involved with the company. "Romney said he will stay on as a part-timer with Bain, providing input on investment and key personnel decisions," read one such report from the Boston Herald (credit:AP)
Former Partner Speaks Out(09 of11)
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A former Bain Capital partner, Ed Conard, said during an appearance on MSNBC's "Up W/Chris Hayes" that Romney was "legally" the CEO and sole owner of Bain Capital until 2002, as an ownership battle dragged on after Romney left to take over the Salt Lake City Olympics."We had a very complicated set of negotiations that took us about two years for us to unwind. During that time a management committee ran the firm, and we could hardly get Mitt to come back to negotiate the terms of his departure because he was working so hard on the Olympics," Conard said. (credit:AP)
Relationships With Problematic Companies(10 of11)
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HuffPost's Sam Stein reported that SEC filings link Romney to politically problematic companies after his alleged 1999 departure from Bain:
A Huffington Post review of SEC files unearthed six separate occasions in which Romney was listed as a member of "the Management Committee" of both Bain Capital Investment Partners and BCIP Trust, "deemed to share voting and dispositive power with respect to" shares held of DDi. In one of those filings, Romney is listed as president and managing director of Bain Capital, Inc.The dates of those filings range from April 14, 2000 to May 10, 2001 -- all after Romney had left for Salt Lake City. In one March 2001 filing, Romney signed the document as the "reporting person."
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'General Partner'(11 of11)
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According at a document filed with the California Secretary of State's office in July 1999, Romney was listed as a "general partner" at Bain Capital Partners. Romney's signature appears on the document. Romney remained on record as a general partner until California was notified of his resignation in June 2003. (credit:AP)

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