Bain Capital Received 8 Figure Government "Bailout"

Did Romney get Bain a bailout? Robert Lane Greene Economist.com Given his disdain for government bailouts, Mitt Romney “has some awkward explaining to do,” said Robert Lane Greene. A reporter for Rolling Stone has obtained documents that show Romney demanded and got a $10 million handout from the government in the early days of Bain & Co., the private-equity firm that launched his career. In 1991, the documents show, Bain was on the brink of financial collapse. Romney responded partly by forcing banks to swallow painful losses on their loans to Bain. He did this by invoking a bizarre clause Bain inserted in loan documents that allowed the company’s executives to collect fat bonuses before paying their debts to banks. Rather than get nothing of the $30.6 million Bain owed a troubled bank, the Federal Deposit Insurance Corp. agreed to take $10 million less. The fact that the FDIC is financed by banks rather than directly by taxpayers “probably makes the word ‘bailout’ a stretch.” But the embarrassing fact remains that Romney helped save Bain from bankruptcy by getting an eight-figure gift from the government. http://www.allmanbrothersband.com/modules.php?op=modload&name=XForum&file=viewthread&tid=126100