The Bain "bailout" story is interesting. It wasn't tax dollars but rather FDIC money. I'm more interested in this fitting the Romney pattern of getting fat on misappropriated borrowed money.
ABC NewsIn 1990, Romney led the restructuring of Bain & Company, from which Bain Capital spun off in the 1980s. Bain & Company developed problems after the partners drained $200 million of borrowed money from the firm.
The Federal Deposit Insurance Corp. was involved in the loan restructuring since it assumed the Bank of New England, to which Bain & Company owed $38 million. The Boston Globe reported in 1994 that the FDIC agreed to lower the amount owed by $10 million, but the FDIC, a government agency, notably does not utilize taxpayer funding and instead is financed through deposit insurance payments, which negates Biden’s claim that the restructuring cost taxpayers millions of dollars.
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If you would only recognize that life is hard, things would be so much easier for you.
- Louis D. Brandeis
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