Obama Campaign Attacks Romney’s Resume
Mitt Romney is probably just days away from being named John McCain’s running mate, and the Democrats are already taking shots based on his time running Bain Capital. During a press conference earlier today in Denver, Obama campaign manager David Plouffe referred to the former buyout kingpin as a “job killing machine in business” who “has been proficient at using tax havens in places like the Cayman Islands that Americans have become increasingly tired of.”
It’s certainly true that Bain laid off portfolio company employees during Romney’s tenure. It’s also certainly true that Bain hired portfolio company employees during Romney’s tenue (particularly at the earlier-stage companies).
So Plouffe was only telling a half-truth, although it’s one we should expect to hear over and over again. This will be particularly true if Romney’s people keep avoiding any actual discussion of Bain Capital, as his spokesman did in response to Plouffe’s comments.
As I’ve written before, I’m thrilled by the prospect of Romney as a vice presidential candidate. Not because of my political biases, but because it gives me something to write about for the next few months. But his former private equity colleagues should be very nervous about what his candidacy would mean for their own reputations and future regulation. The industry was dragged through the mud most of last year, and has largely been forgotten ever since (except in Michigan, thanks to Cerberus/Chrysler). A McCain-Romney ticket will bring it all back with a vengeance.
As an aside, Obama’s VP pick also has some financial market baggage. Check out this Law Blog post on his provincial protection of Delaware bankruptcy lawyers. Or this one on his family’s hedge fund headaches.
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John P. Bessone said on August 27, 2008
I would like to think that Romney’s “people” would be prepared for this kind of attack, seeing as they were so woefully unprepared years ago when Mitt ran against Ted Kennedy for Senate in Massachusetts. It is my recollection that Teddy came after him pretty hard for his Bain PE background then, and they were not ready or did not handle it well. And up until that time he was definately in the race. So, if they are not more than ready this time around, then they don’t deserve to be on this ticket.
Darrell Sorenson said on August 27, 2008
I can’t think of a better background to be from…when it comes to Washington. The government does not compensate politicians for successes, cost saving, or efficiencies; politicians are usually rewarded for subsidies and inefficiencies. I totally support someone who is extremely sharp as well as familiar with cutting the excess fat from companies and strategy consulting. I think Romney would be a great balancer for McCain.