NY Magazine’s Caroline Bankoff reports: “The double-edged sword that is Mitt Romney's
career at Bain Capital will not stop causing image problems for the candidate.
This time, it's a pair of articles chronicling the private equity firm's
outsourcing of American jobs and methods for draining money out of the failed
companies it controlled. The Washington Post has the former story, which
reporters gleaned from Bain's Securities and Exchange Commission filings. While
campaigning, Romney has frequently promised to bring jobs currently done by
overseas workers back to the United States, but the filings show that Bain
began investing in companies that specialized in outsourcing in the early
nineties.
“Bain’s foray into outsourcing began in 1993 when the
private equity firm took a stake in Corporate Software Inc., or CSI, after
helping to finance a $93 million buyout of the firm. CSI, which catered to
technology companies like Microsoft, provided a range of services including
outsourcing of customer support. Initially, CSI employed U.S. workers to
provide these services but by the mid-1990s was setting up call centers outside
the country.
“Two years after Bain invested in the firm, CSI merged with
another enterprise to form a new company called Stream International Inc.
Stream immediately became active in the growing field of overseas calls
centers. Bain was initially a minority shareholder in Stream and was active in
running the company, providing “general executive and management services,”
according to SEC filings….
If this isn't how private equity companies like Bain work, we'll eat our hat. But don't take out word for it, check out http://nymag.com/daily/intel/2012/06/bain-horror-stories-continue-to-haunt-romney.html?imw=Y
No comments:
Post a Comment